CMS NEWS ALERT: June 11, 2020

[IceWizard]

CMS NEWS ALERT: Nursing Home Residents’ Right 
to retain Federal Economic Incentive Payments

Medicaid.gov sent this bulletin at 
06/11/2020 03:21 PM EDT


NEWS ALERT



The Centers for Medicare & Medicaid Services (CMS) is aware of allegations that some 
nursing homes are seizing residents economic impact payments (or “Stimulus Checks”) 
authorized under the CARES Act.  This practice is prohibited, and nursing homes that seize 
these payments from residents could be subject to federal enforcement actions, including 
potential termination from participation in the Medicare and Medicaid programs.

 

While CMS has not received any specific complaints regarding this practice, we believe it 

is important for residents and families to know their rights, and for nursing homes to understand 
the liability associated with this practice.


Seizing residents’ stimulus checks could be a violation of federal regulations at 42 CFR §483.12,
 Freedom from Abuse, Neglect and Exploitation.  Specifically, this could be considered 
misappropriation of resident property, which is defined as “the deliberate misplacement, 
exploitation, or wrongful, temporary, or permanent use of a resident's belongings or money 
without the resident's consent.”   Further, nursing homes requiring residents to deposit their 
stimulus check with the nursing home could be in violation of 42 CFR §483.10 which gives 
residents have “the right to manage his or her financial affairs.”  

Further, 

“The facility must not require residents to deposit their personal funds with the facility. If a 
resident chooses to deposit personal funds with the facility, upon written authorization of a 
resident, the facility must act as a fiduciary of the resident's funds and hold, safeguard, 
manage, and account for the personal funds of the resident deposited with the facility, 
as specified in this section.”

Residents or their family who were compelled to sign their
stimulus check over to their nursing home, are encouraged
to file a complaint with their state survey agency for investigation
of the nursing home. 

State specific complaint contact information is available here:

https://www.cms.gov/Medicare/Provider-En...ntacts.pdf



CMS and State investigators will make referrals to the
States Attorneys General, as appropriate, if they find a
nursing home in violation of these requirements.



Residents and families are also encouraged to contact their
State Attorney General, directly, for redress of their individual loss. 

State Attorneys General contacts are available here: 

https://protect2.fireeye.com/url?k=c95c1...-my-ag.php