Nursing home providers that seize stimulus checks from residents could be removed from participating in the Medicare and Medicaid programs, the Trump Administration warned this week. 

The Centers for Medicare & Medicaid Services issued the notice Thursday in an effort to prevent long-term care facilities from taking coronavirus relief payments from residents. Earlier this week, lawmakers called on the agency to issue guidance to deter the practice.

“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,” CMS stated.

The agency explained that the practice violates several federal regulations regarding abuse, neglect and exploitation. It added that it could be considered misappropriation of resident programs or violate residents rights to manage their own financial affairs. 

“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,” CMS added.