What are the restrictions on spending the $59/month that Medicaid patients are allowed to have for their personal expenses?

Anything for their needs is fine. You do not have to spend the "allowance" within the month either. It can build up, say to buy a TV or other item that is expensive. you just want to make sure that the amount does not build up over time so that their asset limit of 2K is exceeded.

If you have the funds in their personal trust fund @ the NH, you may just want a set amount to go to the hair salon or barber shop on a regular basis.

You might consider a larger purchase, a recliner, a TV or continue to save the $2000. You can give gifts, but they must not be money or basic care items because that is what the medicaid is for. Gifts might be a trip, CD's, a superwarm coat or parka, movies...check with Medicaid folks before you do this, it's not worth messing up their coverage over a small error. I don't know how the individual wants to be dealt with when they pass, so check and see what cover they have for that.

The $59 a month is unrestricted. The $2000 represents the most they can have saved to qualify for Medicaid. If there is more than $2000 it must be spent on the food/housing/medicine/clothing or care of only the patient, no one else.