A second round of stimulus checks is going out. It is important to know that stimulus checks are for individuals. Residents are not required to turn their checks over to their nursing home. And Medicaid recipients need to spend the cash within a year if it puts them over Medicaid’s resource limit.
Congress approved $600 stimulus checks for individuals making less than $75,000 a year, in December 2020. Those checks should be sent to everyone eligible, including individuals on Medicaid or in a nursing home or assisted living facility.
What if a nursing home asks a resident for their stimulus check?
The Federal Trade Commission (FTC) offers remarks on this topic. Stimulus checks are for residents, the FTC is reminding nursing home and assisted living residents. Resident stimulus checks are not for facilities. With the first round of stimulus checks, there were reports that facilities were taking the checks without residents’ permission. The FTC says that if nursing homes ask for a resident’s check, the resident should contact the state attorney general and the FTC.
Medicaid recipients must be aware of Medicaid’s resource limit. Determine if the stimulus check that puts them above Medicaid’s resource limit. Therefore, you will need to spend down the money within a year. Consequently, recipients could risk losing benefits if they do not spend the money. The Social Security Administration has said that it will not consider stimulus payments as income, and that the payments will be excluded from a Medicaid recipient’s resources for 12 months.
Examples of what a Medicaid recipient may be able to spend the money on without affecting their eligibility:
- Make a payment toward paying off debt.
- Make small repairs around the house.
- Update personal effects. Buy household goods, personal comfort objects a new wardrobe, electronics, or furniture.
- Purchase needed medical equipment, if not covered by insurance
- See a dentist or other healthcare professional, if not covered by insurance.
If you have questions about yourself or a family member in a nursing homey, contact Duckett Law LLC.
