Modern Healthcare reported today that some nursing homes have demanded that low-income residents turn over their $1,200 economic stimulus checks, a cash grab lawmakers want to halt. It has been reported that some facilities are trying to take the stimulus payments intended for their residents on Medicaid. Then they’re requiring those people to sign over those funds to the facility. Why? They’re claiming that, because the person is on Medicaid, the facility gets to keep the stimulus payment.
On Tuesday, Sens. Chuck Grassley (R-Iowa) and Ron Wyden (D-Ore.) called on HHS inspector general’s office to issue a warning to nursing homes and assisted living facilities that such practices are “improper and unlawful.”
In the House, Reps. Richard Neal (D-Mass.) and Frank Pallone (D-N.J.) asked CMS to spell out to nursing homes that the relief money from Congress is not considered income that facilities can legally claim to defray the cost of care.
CNN and the Federal Trade Commission reported that that nursing homes in several states are requesting residents sign over their stimulus checks. The facilities may say they get to keep the payment if a patient is on Medicaid, which isn’t true, said Lois Greisman, the FTC’s Elder Justice Coordinator. The stimulus checks are considered tax credits per the CARES Act, which is providing economic relief to people and businesses. Those tax credits don’t count as “resources” for federal benefit programs like Medicaid, so the government cannot claim them, and neither can the nursing homes.
This is not just a horror story making the rounds. These are actual reports that the Iowa Attorney General’s Office have been getting – and handling. Other states have seen the same.
If you or a loved one live in a nursing home or assisted living facility experienced this already, tell your state attorney general’s office first, and then tell the FTC: ftc.gov/complaint. If a loved one lives in a nursing facility and you’re not sure what happened to their payment, talk with them soon. And consider having a chat with the facility’s management to make sure they know which side of the law to be on. Find your state attorney general’s office contact information at naag.org and talk with them right away.