Member News Updates - Iowa Health Care Association

Iowa Medicaid and the Iowa Department of Health and Human Services (DHHS) recently released informational letter (IL) 2719 regarding changes to Personal Needs allowance and supplemental Personal Needs payments.

Due to the HHS Appropriations House File 1049, the Personal Needs allowance and supplemental payment has increased from $50 to $55 per month for individuals residing in a facility. This change will be taking place retroactively back to Aug. 1, 2025.

Ongoing client participation and supplemental Personal Needs payments will be made beginning with the March 2026 benefit to reflect the $5 increase for all Medicaid facility cases. March payments will be received on the first of the month, consistent with the current schedule.

Retroactive adjustments to client participation and supplemental payments will be made in early February 2026 for the months of August 2025 through February 2026, reflecting a $5 adjustment for each month for all affected facility cases.

If an individual who is entitled to the supplemental payment does not receive the payment, they can contact the Facility and Waiver Eligibility Team at [email protected] or 1-877-344-9628.

If you have questions, please contact Iowa Medicaid Provider Services, the appropriate managed care organization (MCO) or dental plan:

Iowa Medicaid Provider Services