Directs the Department of Health and Human Services (DHHS) to increase the personal needs allowance for institutionalized individual Medicaid recipients from $30 to $50, and for married couples who are both Medicaid recipients and institutionalized from $60 to $80. Requires DHHS to deduct the applicable increased amount from the total monthly income taken into consideration when applying appropriate income to the cost of institutionalized care. Directs DHHS to submit any amendments to the Medicaid State Plan to the Centers for Medicare and Medicaid Services.

Appropriates $1.4 million in recurring funds for the 2019-20 fiscal year, and $2.8 million in recurring funds for the 2020-21 fiscal year, from the General Fund to the Division of Health Benefits (Division) to implement the rate increase. Restricts use of the funds to matching specified federal fund estimates for the 2019-21 biennium. Appropriated the specified federal fund amounts to the Division to pay for costs associated with the rate increase. 

Effective January 1, 2020.