2016 Key Medicaid Dollar Amounts

A. Yes, most of these figures have been released and we are happy to provide details on what has changed for the coming year! The complete 2016 dollar amounts are available on our website. Be sure to check back often, as we will add any information that has not yet been released and update the page should any changes occur (e.g. the Minimum Monthly Income Allowance adjustment is updated annually on July 1).

In 2015 and continuing into 2016, states remain focused on strategies and initiatives to improve the effectiveness and outcomes of care, and to slow the growth in the cost of care. For this coming year, state Medicaid programs are looking for opportunities to leverage other resources and stakeholders (such as state public health agencies and other payers) to improve the quality of care provided, control rising prescription drug costs, and ultimately affect health outcomes for the populations they serve. According to the Kaiser Family Foundation’s “Medicaid Reforms to Expand Coverage, Control Costs and Improve Care: Results from a 50-State Medicaid Budget Survey for State Fiscal Years 2015 and 2016” report, “pursuing these significant goals has caused Medicaid to evolve into a major player in transforming the overall health care system.”

When it comes to key dollar amounts, the amounts that have changed are denoted below. Please keep in mind that the Medicaid Divestment Penalty Divisor for Northern Virginia and the rest of the state has not yet been released. Neither has the Monthly Personal Allowance for Elderly or Disabled with Consumer Direction (EDCD) or the Utility Standard. We will update our website as soon as this information becomes available.

Spousal Impoverishment Standards

Minimum Monthly Income Allowance (For all states, except Alaska and Hawaii): The total Minimum Monthly Income Allowance remains at 1,991.25 – it will be adjusted on July 1, 2015.

Below are the numbers that have changed for the coming year:

Medicare Deductibles, Premiums and Co-pays

Medicare Part A Premium

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Long-Term Care (LTC) Insurance Premium Deductibility Limits

In 2016, the IRS will once again increase the amounts long-term care insurance customers can deduct from their federal income taxes. The IRS’s premium deductibility limits may assist those who itemize their medical expenses. See below for the maximum deductions based on attained age before the close of the taxable year.

Substantial Gainful Activity (SGA)

Maximum Social Security Benefit:

Worker Retiring at Full Retirement Age
2016: $2.639/mo.
2015: $2.663/mo.

SSI Federal Payment Standard

Individual
2016: $733/mo.
2015: SAME

Estimated Average Monthly Social Security Benefits Payable in January 2016

Thank you for your interest in these key dollar amounts for 2016. We hope this was helpful! We also hope to see you this month or in the new year at one of our seminars in 2016. As always, if you or a loved one is nearing the need for long-term care or already receiving long-term care, or if you have not done Long-Term Care Planning, Estate Planning or Incapacity Planning (or had your Planning documents reviewed in the past several years), please call us to make an appointment for an initial consultation: