UPDATED April 16, 2020
If you or someone you know is on Medicaid (Nursing Home) or Special Assistance (Assisted Living Facility): READ THIS. This article has very important information about the effects of the $1,200 stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In this update, I will explain why Medicaid and Special Assistance recipients have no immediate cause for alarm. I earlier raised concerns that have since been resolved. It’s been a fluid situation, to say the least. I will, however, continue to bring any issues I see to reader attention (with followup as they are hopefully resolved).
Soon stimulus checks under the recently passed CARES Act will be going out to Social Security recipients. That means that these folks will be receiving $1,200 in the same manner as their Social Security checks (direct deposit or paper check).
Great! But wait! If the Social Security recipient is also a Medicaid beneficiary (in a nursing home) or a Special Assistance recipient (in an assisted living facility), he or she has a $2,000 asset limit as of the last day of the month.
If Mom is in the nursing home and has $800 or less in her account, then there will be no problem. If Mom has more than that, the stimulus check could put her over the $2,000 limit unless something is done.
If Dad is home, then it may be as simple as Mom transferring the excess funds to Dad. But if Mom is a widow, it could be a different story.
If Mom is in a skilled nursing home and on Medicaid, this will NOT be a problem — at least for awhile.
If Mom is in an assisted living facility and on Special Assistance (it’s not Medicaid even though they call it that) it will not be a problem for a year.
I’ll explain each.
Medicaid in a Skilled Nursing Home
No problem — for now. The Families First Coronavirus Response Act (FFCRA), signed by President Trump on March 18, 2020, increased the percentage of a state’s Medicaid expense that the feds normally kicked in by 6.2 extra percent (translation: That’s A LOT of money).
One of the requirements that a state has to meet, however, is that it will NOT terminate Medicaid benefits for anyone on Medicaid on or after March 18, 2020, and for so long as the Coronavirus Declared Emergency lasts.
On March 20, 2020, the NC Division of Health Benefits (the outfit that administers Medicaid in North Carolina) published Admin. Letter No. 01-20 that provides, among a number of interesting things, that pursuant to the FFCRA no one will have Medicaid benefits terminated for as long as the Declared Emergency lasts (Someone would have needed to have been on Medicaid on March 18 or thereafter).
I say, “no problem for now” — even if it puts Mom over $2,000 because she can’t be terminated. But, as we all do, I pray this medical Coronavirus Emergency will not last forever.
If you are a child caregiver or “business manager” for Mom, keep an eye on that checking account and have some plan for spending it down during the emergency period. In other words, come the end of April, 2020 . . . and probably for a month or two thereafter, DON’T PANIC.
Special Assistance in an Assisted Living Facility
As I have explained before, Special Assistance is NOT Medicaid. Special Assistance is based on rules for the Social Security Supplemental Security Income (SSI) program.
I had been concerned that the $1,200 stimulus payment could pose potential problems for Mom if it puts her account over $2,000 on the end of the month.
Fortunately, the Commissioner of Social Security recently made the following announcement:
“We are working closely with Treasury to address outstanding questions about our SSI recipients in an attempt to make the issuance of economic impact payments as quick and efficient as possible. We realize people are concerned, and the IRS will provide additional information on their web page when available. Please note that we will not consider economic impact payments as income for SSI recipients, and the payments are excluded from resources for 12 months.”
So there you have it. Those $1,200 stimulus checks will have no impact on Medicaid nursing home residents for at least the duration of the emergency. Further, the checks will have no impact on Special Assistance assisted living facility residents for a year (remember, the Special Assistance rules track the SSI rules).
I hope this helps. Wash your hands.
Hi. My name is Maggie and I have been a Medicaid Recipient since 2016-2017. I am not officially retired; nevertheless, because of my many medical issues, I can not physically work. I am considering filing for Dissability.
I have not filed taxes nor needed to for I have no income except food stamps.
Would I qualify for the $1200 individual Stimulus Check being paid by our Government?
If you can reach out to me, I would greatly appreciate hearing from you!!
Thank you for your time and efforts in assisting me.
Maggie: You can apply online here: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
What happens if a person was alive when the stimulus law was passed but died on April 2nd does the estate keep the money or send it back? The person did qualify when the law was passed
My guess (haven’t researched it) is that the estate keeps the funds. If the deceased was entitled to the payment at his death (and simply hadn’t received it because it was being processed) it would be property of the estate.
Dad is on Medicaid Special Assistance. The stimulus won’t be counted as resources/income for one year. So, if I am Dad’s DPOA, can I move that money elsewhere out if his name to keep in cash for him? His $66 personal care allowance isn’t enough and I, bring low income right now, need all the help I can get when it comes to buying things he might occasionally need. His Medicaid will renew in December, so I expect to have to fill out that paperwork in October. They only really look at the last three months of bank statements. I’m assuming then that as long as he’s under $2,000 by July everything will be ok. Are they going to ask for documentation of how the money was spent? There’s no way he will have $1,200 in expenses but as I said, with the ridiculously low allowance, every bit I can hide is helpful.
We don’t “hide” things from DSS. He has a year to spend it on himself. Certainly you can think of some things for him to spend it on.
Are there any limits on what the stimulus payment can be used for or spent on?
For example: My mother is in a nursing home. We barely manage to spend down what little is left over after her retirement and SS income is put toward nursing home expenses, to keep her account at or under $2000.
Normally what money she has, must be spent on expenses specifically for her, even to spend it down to avoid going over.
With this stimulus amount (and only that amount) at the end of the 12 month period when income/asset limits kick in again, can she do anything she wants with the money — for example, make a donation to her old church, or give gifts to her grandchildren?
Certainly she can spend it on anything she wishes. As for donations and gifts, I can’t say for sure. The payment is not countable as an asset, therefore she’s not giving away an asset. BUT . . . are you ready to argue with someone at DSS?
2 Questions:
My husband is on medicaid and in a nursing home. I am in Wisconsin and I get my social security and his under the laws of Wisconsin for spouse in regards to protecting Medicaid and SS. I got my stimulus check. His SS comes into my checking as well, monthly. Will I get the stimulus check for him? Or what will happen?
My grandson was injured. He is unemployed. He is living with a girlfriend who claims him as a dependent. He doesn’t work and thinks he is not qualified to get the stimulus. He is 28 years old. Should he be getting it?
Yes, your husband’s stimulus check ought to be coming in to the account.
As for your grandson look at this and see where he fits in. There is a link where he can go and apply. https://www.irs.gov/coronavirus/economic-impact-payment-information-center#eligibility
My aunt is on medicade. Her SS goes directly to the nursing home. Will they get her check and if so can they keep it?
The nursing home may not collect more than what her monthly payment is plus whatever Medicaid is paying them. The stimulus check does not count as income nor as an asset for 12 months. Those funds should be hers to spend as she pleases.
What happens after 12 months. Does she (or I in this case) have to give receipts of what it was spent on.
No, you shouldn’t have to give any receipts (but I’d hang on to them anyway).
If my mother is in a skilled nursing home and she comes home to her sons house 2-3 times a week for 1/2 day visits could I use her $1200 stimulus to buy a TV and chair for the house ? I already bought her a lift chair, bookcase & TV for her room at the Nursing home. She has plenty of clothes and Jewelry and a large revocable burial fund. What else would I be permitted to use the money for ?
Just about anything she wants!
My mother is in nursing fulltime. She did recieve the 1200 stimulas. Do i have to give the money to the nursing home or can i spend it on my mother?
You can spend it on her. NC Medicaid just clarified that the stimulus check will not count as an asset nor as income for 12 months.
Does the stimulus check have anything to do with Medicaid approval?
It should not. It did not under the first and second round last year. I have been trying to track down a definite answer. My contacts at a number of DSS offices agree with me, but we’re all waiting on final word. Meanwhile, they’re processing as they had been under earlier stimilus checks.
My mom is in a nursing home and her social security check goes directly there she wants to withdraw the stimulus payment 1400 out for me to buy whatever she need can she do that even if I’m not POA
If your Mom is mentally competent she doesn’t need you to do it as her POA. She can do it herself. BTW, does she have ANYONE as her POA? She should.
May a county home that does not receive Medicaid funding demand that stimulus money go to the cost of the residents housing and care at the home?
If the facility does not receive any sort of Special Assistance or Medicaid they can set their price and expect the residents to pay that price. Whether or not the funds come from stimulus money is not really their concern. Or am I missing something?