Indiana HB 1048: Personal allowance for facility residents.

Bill Text

Introduced Version
HOUSE BILL No. 1048
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 12-10-6; IC 12-15.
Synopsis: Personal allowance for facility residents. Increases the
personal allowance for residential care recipients and Medicaid
recipients from $52 to $100.
Effective: July 1, 2025.
Shackleford
January 8, 2025, read first time and referred to Committee on Public Health.
2025 IN 1048—LS 6439/DI 104

Introduced
First Regular Session of the 124th General Assembly (2025)
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HOUSE BILL No. 1048
A BILL FOR AN ACT to amend the Indiana Code concerning
human services.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 12-10-6-1, AS AMENDED BY P.L.229-2011,
2 SECTION 118, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2025]: Sec. 1. (a) An individual who:
4 (1) is at least sixty-five (65) years of age, is blind, or has a
5 disability; and
6 (2) is a resident of a county home;
7 is eligible to receive assistance payments from the state if the
8 individual would be eligible for assistance under the federal
9 Supplemental Security Income program except for the fact that the
10 individual is residing in a county home.
11 (b) The recipient shall be paid or allowed to retain from the
12 recipient's income a monthly personal allowance. The amount:
13 (1) is fifty-two dollars ($52); one hundred dollars ($100);
14 (2) is exempt from income eligibility consideration by the
15 division; and
16 (3) may be exclusively used by the recipient for personal needs.
17 (c) In addition to the amount that may be retained as a personal
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1 allowance under this section, an individual is allowed to retain an
2 amount equal to the individual's state and local income tax liability.
3 The amount that may be retained during a month may not exceed
4 one-third (1/3) of the individual's state and local income tax liability for
5 the calendar quarter in which the month occurs. This amount is exempt
6 from income eligibility consideration by the division. The amount
7 retained shall be used by the individual to pay state or local income
8 taxes owed.
9 (d) In addition to the amounts that may be retained under
10 subsections (b) and (c), an eligible individual may retain a Holocaust
11 victim's settlement payment. The payment is exempt from income
12 eligibility consideration by the division.
13 (e) The personal allowance for one (1) month for an individual
14 described in subsection (a) is the amount that an individual would be
15 entitled to retain under subsection (b) plus an amount equal to one-half
16 (1/2) of the remainder of:
17 (1) gross earned income for that month; minus
18 (2) the sum of:
19 (A) sixteen dollars ($16); plus
20 (B) the amount withheld from the person's paycheck for that
21 month for payment of state income tax, federal income tax,
22 and the tax prescribed by the federal Insurance Contribution
23 Act (26 U.S.C. 3101 et seq.); plus
24 (C) transportation expenses for that month; plus
25 (D) any mandatory expenses required by the employer as a
26 condition of employment.
27 SECTION 2. IC 12-10-6-2.1, AS AMENDED BY P.L.117-2015,
28 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 2.1. (a) An individual who is incapable of residing
30 in the individual's own home may apply for residential care assistance
31 under this section. The determination of eligibility for residential care
32 assistance is the responsibility of the division. Except as provided in
33 subsection (h), an individual is eligible for residential care assistance
34 if the division determines that the individual:
35 (1) is a recipient of Medicaid or the federal Supplemental Security
36 Income program;
37 (2) is incapable of residing in the individual's own home because
38 of dementia, mental illness, or a physical disability;
39 (3) requires a degree of care less than that provided by a health
40 care facility licensed under IC 16-28;
41 (4) can be adequately cared for in a residential care setting; and
42 (5) has not made any asset transfer prohibited under the state plan
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1 or in 42 U.S.C. 1396p(c) in order to be eligible for Medicaid.
2 (b) Individuals with an