Stimulus taken by nursing homes and assisted living facilities are trying to take the stimulus payments intended for their residents that are on Medicaid. They’re then requiring those people to sign over those funds to the facility claiming that, because the person is on Medicaid, they get to keep the stimulus payment.
Why? According to the CARES Act, the economic impact payments are a tax credit. Tax law states that tax credits don’t count as “resources” for federal benefits programs, like Medicaid. When Congress calls these payments “tax credits” in the CARES Act, that means the government can’t seize them.
This means that nursing homes and assisted living facilities can’t take that money from their residents just because they’re on Medicaid.
If you’ve noticed that your stimulus was taken by your nursing home, contact your state attorney general and ask them to help you get it back.
If this has already happened to you or a loved one, contact your state attorney general’s office first. Then contact 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 immediately. You might also consider having a talk with the facility’s management to make sure they know which side of the law to be on.
Need more information to back-up your position? You can go here to get the federal tax law that says refunds aren’t considered a “resource” in federal benefits programs. And you get the Congressional Summary that talks about the funds as tax credits not countable as resources for federal government programs. (It’s on page 3.)at this link . There’s more information that can be very helpful from the National Center on Law & Elder Rights for people who live in nursing homes or assisted living facilities.
