Updated September 6, 2026. Quick answer: In Minnesota, a Medicaid nursing-facility resident’s Personal Needs Allowance (the state uses different terminology; see below) is $132.00/Month; the amount of their own income they keep for personal use each month, with the rest going to the facility as the patient-pay amount toward the cost of care. That is well above the $30/month federal floor set in 1988 and never raised since. Minnesota Health Care Programs Eligibility Policy Manual, Appendix F: Standards and Guidelines, Minnesota DHS states the figure directly.
Why Minnesota’s figure isn’t the federal floor
Federal Medicaid law requires only a $30-a-month personal needs allowance as a floor; a state is free to set its own, higher figure by statute, regulation, or agency policy. Minnesota has done exactly that, setting $132.00/Month, effective January 1, 2026 – December 31, 2026.
What the allowance covers, and what it doesn’t
The personal needs allowance pays for the things a facility’s daily rate doesn’t cover: clothing, haircuts, snacks, a phone or television, small personal purchases. It is deducted before the rest of a resident’s income is applied to the facility bill as the patient-pay (or post-eligibility treatment of income, PETI) amount. It is not extra money on top of what Medicaid already pays the facility; it is the one slice of a resident’s own income that Medicaid rules guarantee the resident, not the facility, keeps.
A note on the name
Minnesota’s line item is the “Clothing and Personal Needs Allowance,” applied to LTC enrollees not eligible for a more specific LTC needs allowance; the figure that applies to a typical single nursing-home resident.
One exception or caveat worth knowing
Confirmed from the agency’s own page text rather than from the underlying source document.
| Citation | Minnesota Health Care Programs Eligibility Policy Manual, Appendix F: Standards and Guidelines, Minnesota DHS |
| What it says | “The Clothing and Personal Needs Allowance is used when the enrollee is not eligible for any of the other LTC needs allowances. January 1, 2026 to December 31, 2026: $132” |
Every citation on this page was read directly from the state’s own Medicaid agency, administrative code, or official eligibility manual this session. General information, not legal or financial advice; a figure this specific can change with a budget cycle or a rule amendment, and a facility or state caseworker has the final say on any individual case.