Some nursing homes taking coronavirus stimulus checks from patients. Can they do that?

If you or a loved one live in a nursing home and are on Medicaid, the Federal Trade Commission wants you to know that the facility is not entitled to take your coronavirus stimulus payment.

Lois Greisman, elder justice coordinator for the FTC, said the Iowa Attorney General’s Office and others have reported that some nursing homes are taking stimulus checks from patients on Medicaid, according to a news release.

Doing so contradicts the CARES Act which categorizes stimulus payments as tax credits, the release said.

Medicaid requires residents of nursing homes and assisted living facilities to contribute the majority of their income to cover the cost of care, Bloomberg Law reported. The program allows residents to keep a “personal-need allowance,” usually a small amount of money, for personal expenses and medical costs not covered by Medicaid, according to the outlet.

But tax credits are not considered “resources” for federal benefits programs including Medicaid, meaning the government cannot seize them, according to the FTC.

This, in turn, means that nursing homes and assisted living facilities cannot take that money from residents solely because they’re on Medicaid, the release said.

If you’re on Medicaid and a nursing home or assisted living facility required you to hand over your stimulus payment, contact your state attorney general’s office then file a complaint with the FTC, the agency said.

If a loved one lives in a nursing home or assisted living facility, the FTC recommends touching base with them soon and talking with the facility’s management to ensure they’re aware of the distinction.

This story was originally published May 17, 2020 at 2:24 PM with the headline "Some nursing homes taking coronavirus stimulus checks from patients. Can they do that?."