In a sternly worded statement, the Centers for Medicare & Medicaid Services reminded providers that federal law prohibits nursing homes from seizing residents’ COVID-19-related economic impact payments.
Though the agency said it was unaware of any possible misuses, it warned that providers who seized payments made as part of the CARES Act could be subject to federal enforcement, including termination from the Medicare and Medicaid programs.
“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,” the agency said.
Days prior, House Ways and Means Committee Chairman Richard Neal (D-MA) and Energy and Commerce Committee Chairman Frank Pallone Jr. (D-NJ) asked CMS Administrator Seema Verma to clear up confusion about handling the payments of Medicaid beneficiaries in particular.
“It is crucial that this vulnerable population group continues to have the certainty that comes with these [payments] and are not coerced into wrongly handing over their checks for fear of being kicked out of their homes,” the pair said in a letter.
The one-time payments of up to $1,200 per adult are considered advance tax credits and can’t be counted as “income” for Medicaid purposes, the congressmen wrote.
CMS concurred, adding that nursing homes requiring residents to deposit their stimulus checks with the nursing home could be in violation of a federal law giving residents the right to manage their finances.
While the Federal Trade Commission said it heard of some instances of facilities claiming they were entitled to the checks, the American Health Care Association, the largest provider association, said it knew of no major issues.
CMS said that state survey agencies would handle complaints about suspected misappropriation.
From the July/August 2020 Issue of McKnight's Long-Term Care News
