Commonwealth of Massachusetts 
Executive Office of Health and Human Services 
Division of Medical Assistance 
600 Washington Street
Boston, MA 02111


MassHealth 
Long Term Care Facility Bulletin 74 
December 2000 

TO: Nursing Facilities, Chronic Disease and Rehabilitation Inpatient Hospitals, 
and Rest Homes Participating in MassHealth 

FROM: Wendy E. Warring, Commissioner 

RE: 2001 Social Security Benefit Cost-of-Living Adjustment (COLA) for Residents 
of Skilled-Care Facilities 

Background

Effective January 1, 2001, a Social Security cost-of-living adjustment 
(COLA) increased monthly benefits for recipients of 
Retirement/Survivors/Disability Insurance (RSDI) by 3.5%. 

Patient-Paid Amount Increase for Residents of Skilled-Care Facilities

An increase in monthly income will, in most instances, result in an 
increase to the monthly patient-paid amount (PPA) for skilled-care facility 
residents. COLA increases must be applied toward claims submitted to the 
Division of Medical Assistance for January 2001, and for each month 
thereafter. 

Recently, system-generated notices about the new PPAs were mailed to 
members, spouses, and responsible parties. Card notices indicating old 
and new PPAs for each member were mailed to affected providers. 

Patient-Paid Amount Increase for Residents of Rest Homes

Effective January 1, 2001, the Supplemental Security Income (SSI) 
payment amount for residents of rest homes increased by $18 per month, 
resulting in an $18 per month increase in the PPA. This increase must be 
applied to claims submitted to the Division of Medical Assistance for 
January 2001, and for each month thereafter. The minimum PPA will be 
$763. 

Personal Needs Allowances

The personal needs allowance (PNA) for MassHealth members in nursing 
facilities and chronic disease hospitals remains $60 per month. 

The PNA for SSI recipients in rest homes is $60 per month. 

The PNA for SSI recipients in nursing facilities and chronic disease 
hospitals is $65 per month. 




MassHealth 
Long Term Care Facility Bulletin 74 
December 2000 
Page 2 

Questions

Questions about the information in this bulletin should be directed to the 
MassHealth Policy Hotline at (617) 210-5331.