CMS warns nursing homes against seizing residents' stimulus checks

The Centers for Medicare and Medicaid Services (CMS) said Thursday that nursing homes that confiscate residents’ coronavirus stimulus payments could be subject to federal enforcement actions, including possible removal from participating in Medicaid and Medicare programs.

CMS said in a news release that it is aware of allegations that some nursing homes are demanding residents’ payments, and that the practice is prohibited. The agency said that it has not received specific complaints about this practice but wants to inform nursing home residents of their rights while warning facilities of the potential consequences of seizing residents’ checks.

CMS’s message comes after state attorneys general have been reporting that they’ve had complaints of nursing homes and assisted-living facilities requiring residents on Medicaid to sign over their payments. Members of Congress on both sides of the aisle have been asking federal agencies to help protect residents, with House Ways and Means Committee Chairman Richard NealRichard Edmund NealOvernight Health Care: US showing signs of retreat in battle against COVID-19 | Regeneron begins clinical trials of potential coronavirus antibody treatment | CMS warns nursing homes against seizing residents’ stimulus checks CMS warns nursing homes against seizing residents’ stimulus checks Nursing homes under scrutiny after warnings of seized stimulus checks MORE (D-Mass.) and House Energy and Commerce Committee Chairman Frank Pallone Jr. (D-N.J.) urging CMS to issue guidance to nursing homes and residents.

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CMS said that the confiscation of residents’ checks could be considered misappropriation of resident property under federal regulations. Nursing homes that require residents to sign over their payments could also be in violation of rules that give residents the right to manage their own financial affairs, the agency added.

CMS encouraged nursing home residents and their family members who were directed to turn over their stimulus checks to file complaints with their state survey agency and to contact their state attorney general.

Under legislation enacted in March, most Americans are entitled to one-time payments of up to $1,200 per adult and $500 per dependent child. The checks are advance payments of refundable tax credits, which means that they cannot count as income for Medicaid eligibility purposes.