Consumer Alert
Did a nursing home or assisted living facility take your stimulus check?
Do you or a loved one live in a nursing home or assisted living facility? Are you (or they) on Medicaid? If you said “yes” to both, please read on and prepare to get mad. We’ve been hearing 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? Well, they’re claiming that, because the person is on Medicaid, the facility gets to keep the stimulus payment.
But here’s the deal: those economic impact payments are, according to the CARES Act, a tax credit. And tax law says that tax credits don’t count as “resources” for federal benefits programs, like Medicaid. So: when Congress calls these payments “tax credits” in the CARES Act, that 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. And, if they took it already, get in touch with your state attorney general and ask them to help you get it back.
This is not just a horror story making the rounds. These are actual reports that our friends in the Iowa Attorney General’s Office have been getting – and handling. Other states have seen the same.
If you’ve 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.
Need more back-up? Then let me get legal on you for a minute. You can go right here to get the federal tax law that says refunds aren’t considered a “resource” in federal benefits programs. And you can click this link to 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.) And here’s even more helpful information from the National Center on Law & Elder Rights for people who live in nursing homes or assisted living facilities.
Again, though: if this has happened to you or a loved one, find your state attorney general’s office contact information at naag.org and talk with them right away.
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In reply to When my mother died, the by Sheila
In reply to Hello, by nyyfan
According to the CARES act, the economic impact payments are a tax credit. Tax law says that tax credits don’t count as “resources” for federal benefits programs, like Medicaid. Congress called the stimulus payments “tax credits” in the CARES Act, so it means the government can’t seize the payments. Which means nursing homes and assisted living facilities can’t take that money from residents just because they’re on Medicaid.
If a facility took it from your son's payment, you can contact your state attorney general and ask them to help get it back.
In reply to Hello, by nyyfan
In reply to I do believe this happened by Graced76
If your mother gets Social Security benefits, including retirement, survivors, SSI and SSDI benefits, you can look at the Social Security Administration chart that tells when and how people would get their payments.
You can also look at IRS information about who is eligible.
In reply to How can we find out if a by Caresaboutothers
If a person gets Social Security benefits, including retirement, survivors, SSI and SSDI benefits, you can look at the Social Security Administration chart that tells when and how people will get their payments.
The Social Security Administration said, that in general, people would get the stimulus payments the same way they get monthly payments from Social Security. But the SSA does not send payments, the IRS does.
Social Security says they can give limited help over the phone. You can search for your local office on this page or call the national number: 1-800-772-1213. The IRS Economic Impact Payment page tells people they should not call right now.
In reply to If a person gets Social by FTC Staff
In reply to What happens to a person by Blue1986
The Social Security Administration has information for people who get a stimulus check and have a representative payee. Go to the rep payee page on the Social Security Administration website.
In reply to My brother is in charge of my by Don't use your…
Because of Congress, nursing homes can't take a stimulus checks from a resident just because she is on Medicaid. If they take it, you can call the Attorney General in your state. The Attorney General in Iowa is already handling a case about this. Use this list to find your state attorney general.
Here is more about nursing home residents and stimulus checks.
In reply to I read this artical and by Ge Rogers