Michigan Nursing Home Administrator (NHA) Practice Exam

What is the patient pay amount (PPA) based on?

1. The nursing home's overall income

2. The excess income of the recipient

3. The Medicaid reimbursement rate

4. State-wide averages of nursing home costs

The correct answer is: The excess income of the recipient

The patient pay amount (PPA) is based on the excess income of the recipient. This means that when determining the PPA, the individual's income is first assessed to calculate how much they will need to contribute toward their care in a nursing home. The PPA represents the portion of a Medicaid recipient's income that must be spent on their care after certain deductions and allowances have been made. By focusing on the excess income, the calculation ensures that those receiving assistance through Medicaid still retain a minimal amount of income for personal needs while contributing to their long-term care costs. Understanding this calculation is essential for nursing home administrators as it impacts both the financial management of the facility and the financial responsibilities of the residents.