Spousal Income Allowance

In Michigan, the community spouse income allowance received from the institutionalized spouse is based upon several factors.

First, the basic spousal income allowance for 2008 is a minimum of $1,712 per month.

Next, the community spouse, if he or she qualifies, gets a shelter allowance, but only to the extent that the community spouse’s monthly shelter expenses exceed $516 per month. Shelter expenses consist of land contract or mortgage payments, rent, property taxes, assessments, homeowners insurance, condominium maintenance charges. The heating and utility allowance for the community spouse is set at a fixed rate of $587 per month.

If all of the shelter expenses added together, exceed the standard shelter allowance of $516 the additional amount is the excess shelter allowance. This amount is then added to the minimum income allowance of $1,712 per month. However, the total of all community spouse income allowance cannot exceed $2,610.

Once the total spousal income allowance has been determined, the community spouse’s own monthly income is deducted from the total allowance. The remaining sum is the amount that is diverted from the income of the institutionalized spouse to the community spouse.

If the community spouse’s own income is greater than the income allowance then all of the institutionalized spouse’s income will be applied to the patient pay amount. There is no limit on the amount of income that can be earned by the community spouse. Other than determining whether the community spouse is entitled to an income allowance, the community spouse’s income is not used to pay for the institutionalized spouse’s nursing home care.