Nursing Homes Will Face 'Enforcement Action' for Seizing Stimulus Checks From Seniors

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The Trump administration is cracking down on nursing homes that are unlawfully seizing stimulus checks from senior residents.

Two House Democratic committee chairmen are urging the Centers for Medicare & Medicaid Services (CMS) to issue guidance to prevent the theft of coronavirus relief payments.

ICYMI: @RepRichardNeal and I are demanding action from CMS to stop nursing facilities from seizing residents’ economic impact payments. We have an obligation to protect our seniors from unscrupulous business practices.https://t.co/Dq5DDCOQBp

— Rep. Frank Pallone (@FrankPallone) June 9, 2020

"It is crucial that this vulnerable population group continues to have the certainty that comes with these [economic impact payments] and are not coerced into wrongly handing over their checks for fear of being kicked out of their homes," House Ways and Means Committee Chairman Richard Neal (D-Mass.) and Energy and Commerce Committee Chairman Frank Pallone Jr. (D-N.J.) wrote in a letter Monday to CMS Administrator Seema Verma, per The Hill.

Verma thanked Neal and Pallone Jr. and said CMS prohibits nursing homes from this type of behavior adding that those who engage in it “will be subject to enforcement action.”

Thank you @RepRichardNeal & @FrankPallone for raising concerns w/ facilities requiring residents to sign over stimulus checks. CMS requirements prohibit this. Nursing homes engaging in this behavior will be subject to enforcement action. https://t.co/uhrLt6lt1C

— Administrator Seema Verma (@SeemaCMS) June 9, 2020

The Federal Trade Commission warns nursing home residents that the assisted living facility cannot take your federal stimulus check.

In a media release, the FTC says it has gotten complaints that some nursing homes were requiring residents on Medicaid, to sign over their federal COVID-19 economic stimulus payments to the home.

The homes say the payments are considered “resources” which can be claimed by the home, but the FTC says the CARES Act considers the economic stimulus money a “tax credit” which means the government and therefore, nursing homes and assisted living facilities, cannot seize.

The FTC urges any nursing home resident to contact their state’s attorney general if their home has seized their stimulus money.

If you have a loved one in a nursing or assisted living home the FTC encourages you to check on that loved one to be sure their stimulus check was not seized by the home.

You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).

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