Important Medicaid Update: 2024 Community Spousal Maintenance Adjustments

As an elder law firm, we understand the critical importance of staying informed about changes in laws and regulations that impact the lives of the elderly and their caregivers. We are writing to inform you of a significant update from the New Jersey Department of Human Services, Division of Medical Assistance and Health Services, regarding the 2024 adjustments to the Community Spousal Maintenance, Shelter, and Utility Allowance.

Key Changes Effective July 1, 2024:

1. Increased Community Spouse Maintenance Allowance:

   - The base allowance for a community spouse has increased from $2,465.00 to $2,555.00.

   - This increase affects the maintenance allowance calculations for certain dependent family members residing with the community spouse.

2. Shelter Costs Adjustments:

   - The standard for determining excess shelter costs for the community spouse has increased from $739.50 to $766.50.

   - If the community spouse pays directly for utilities, a utility allowance of $850.00 per month (effective from October 1, 2023) is added to the shelter expense. This amount may be updated by the federal government later this year.

3. Income Deduction Calculation:

   - The community spouse’s gross income will be subtracted from the overall allowance to determine the amount deductible from the institutionalized spouse’s income before applying it to their cost of care.

   - For other family members residing with the community spouse, the income deduction is calculated as one-third of the amount by which $2,555 exceeds the family member’s income.

Important Considerations:

- Resource Share:

  The community spouse’s share of the couple’s countable resources remains unchanged. It is the greater of $30,828 or one-half of the couple’s total resources, not exceeding $154,140. The home equity maximum limit is $1,071,000.

- Termination of Deductions:

  Deductions for the community spouse and family members cease in the first full-calendar month after certain events, such as the death or institutionalization of the community spouse, or when the family member no longer qualifies as a dependent.

Application of New Standards:

County Social Service Agencies and Institutional Services Section offices are required to apply these new standards in the post-eligibility treatment of income starting from July 2024 for all new cases subject to redetermination.

For More Information:

Stay informed and prepared with these critical updates to ensure that you can continue to provide the best possible care and support for your loved ones and clients. For further assistance or to discuss how these changes might impact your specific situation, please do not hesitate to reach out to our office at contactus@njelc.com or 973-228-1795.