Both federal and state laws allow a portion of a person’s income to be paid to the healthier spouse. The healthier spouse is referred to as the “community spouse”. The amount of the spousal support is based upon a very complicated formula involving the poverty line for a family of two.
After Medicaid determines the basic monthly support, the support can then be increased based upon certain shelter expenses. The shelter expenses are limited to rent, mortgage, taxes, homeowner’s insurance and utility expenses. Since utility expenses can be difficult to determine on a monthly basis throughout an entire year, the State of New Jersey has a standard utility allowance.
Prior to October of this year the utility allowance was $730.00. The utility allowance has now been increased to $850.00. According a directive issued by the New Jersey Division of Medical Assistance and Health Services (DMAHS), the utility allowance is $850.00 effective October 1, 2023. This directive by the DMAHS is known as Medicaid Communication No. 23-07.
This change in the law means that a person’s spousal support can be based upon utility expenses of $850.00 per month. The utility allowance increased by more than 16% and will be helpful in awarding a greater amount of spousal support to the community spouse.
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