Don't Get Cheated Out of Your Stimulus Check!!

Did a nursing home or assisted living facility take your stimulus check?

By Lois Greisman, WHSV Newsroom | 

Posted: Fri 5:27 PM, May 15, 2020

The Federal Trade Commission reports that some nursing homes and assisted living facilities are trying to take the stimulus payments intended for their residents on Medicaid. The facilities claim that, because the person is on Medicaid, the facility gets to keep the stimulus payment.

However, those economic impact payments are, according to the CARES Act, a tax credit. Tax law says that tax credits don’t count as “resources” for federal benefits programs, like Medicaid.

Calling these payments “tax credits” in the CARES Act means the government can’t seize them, which means nursing homes and assisted living facilities can’t take that money from their residents just because they’re on Medicaid.

If you’ve experienced this already, the FTC suggests to tell your state attorney general’s office first. Then tell the FTC, which you can do at 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.

You can get the Congressional Summary that talks about the funds as tax credits not countable as resources for federal government programs, here (It’s on page 3). You can also get more helpful information from the National Center on Law & Elder Rights for people who live in nursing homes or assisted living facilities.

Medicaid home and community-based services (HCBS) assist a person in living at home or in a residence, like an assisted living facility. Under recent COVID-19 legislation, most people receiving Medicaid HCBS are receiving stimulus payments of up to $1,200. The Internal Revenue Service (IRS) will issue these payments in the same way they issue your Social Security benefit (direct deposit or a paper check by mail). This money belongs to you and will NOT affect your Medicaid eligibility!

In general, you can spend the stimulus money as you wish. This is also true for people who live in a residential setting such as an assisted living facility; the money belongs to you, not the facility.