Outcry as some nursing homes try to grab stimulus checks - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
June 9, 2020 Newswires
Share
Share
Post
Email

Outcry as some nursing homes try to grab stimulus checks

Associated Press

WASHINGTON (AP) — Compounding the hardships of the coronavirus, some nursing homes have demanded that low-income residents turn over their $1,200 economic stimulus checks, a cash grab lawmakers want to halt.

On Tuesday, Sens. Chuck Grassley, R-Iowa, and Ron Wyden, D-Ore., called on the Health and Human Services inspector general's office to issue a warning to nursing homes and assisted living facilities that such practices are “improper and unlawful.”

In the House, Reps. Richard Neal, D-Mass., and Frank Pallone, D-N.J., asked the Centers for Medicare and Medicaid Services to spell out to nursing homes that the relief money from Congress is not considered income that facilities can legally claim to defray the cost of care.

Low-income Medicaid recipients must not be “coerced into wrongly handing over their checks for fear of being kicked out of their homes,” wrote Neal and Pallone. Any funds taken must be returned.

Nationally, over 35,500 people have died from coronavirus outbreaks at nursing homes and long-term care facilities, about a third of the national toll, according to a running tally by The Associated Press.

The attempt to claw back stimulus checks from residents on Medicaid was flagged last month by the Federal Trade Commission's elder justice office, which said it had received reports from Iowa and other states. Oregon's attorney general has issued a “scam alert," calling the practice unlawful.

The nursing home industry says if there's a problem, it's not that common. “We are not aware of widespread issues with resident stimulus funds," the American Health Care Association said in a statement.

But the FTC's elder justice coordinator, Lois Greisman, posted earlier that “this is not just a horror story making the rounds.”

Some nursing homes were claiming that if a resident was on Medicaid, the facility would get to keep the $1,200 stimulus payment.

Generally, a Medicaid recipient’s taxable income is taken into account in determining their eligibility for the program. Taxable income can be taken by a nursing home, according to congressional staff, while the resident can keep a small amount as a personal allowance.

But lawmakers said Congress structured the payments as a tax credit, not as taxable income. They were part of the $2.2 trillion CARES Act, passed to provide an economic lifeline as the pandemic shut down much of the nation's business activity.

“Congress expressly intended that any refund be disregarded in the administration of federal programs and federally assisted programs,” wrote Grassley and Wyden. Translation: Medicaid recipients can keep the money.

The Trump administration agrees. CMS chief Seema Verma tweeted on Tuesday that “nursing homes engaging in this behavior will be subject to enforcement action.”

Older

Majesco Digital1st® EcoExchange Expansion with New Partner Apps and Unveils New Partner Self-Serve Capabilities

Newer

Atradius: Asia Braces for Insolvency Storm Amid COVID-19 Fallout

Advisor News

  • Americans aren’t turning retirement plans into action, LIMRA finds
  • Ashley Hinson ‘death tax’ story collides with truth
  • How advisors can prepare clients for an uncertain retirement landscape
  • Investors aren’t waiting out uncertainty
  • Transamerica and Advo(k)ate Advisors launch pooled employer plan
More Advisor News

Annuity News

  • Corebridge annuity sales slip ahead of Equitable marriage
  • California teachers settle class-action lawsuit over in-plan annuity fees
  • Jackson Financial CEO caps 40-year career with blockbuster Q2
  • Lumos Insurance introduces the Immediate Care Plan to help families fund long-term care
  • NAIC regulators begin consensus phase on annuity illustration overhaul
More Annuity News

Health/Employee Benefits News

  • Endorsing Janoo
  • Ashley Hinson unveils insurance transparency bill amid scrutiny of her health care record
  • Why Gen Z turns everything – even murder – into a joke
  • Ashley Hinson unveils insurance transparency bill amid scrutiny of her health care record
  • 3 summer sales habits that build next year’s pipeline
More Health/Employee Benefits News

Life Insurance News

  • Indiana eyes more oversight of insurance companies' exposure to private credit
  • HEALEY-DRISCOLL ADMINISTRATION RETURNS $14.5 MILLION TO HEALTH AND DENTAL INSURANCE CONSUMERS AND BUSINESSES
  • ‘Uniquely positioned’: Equitable outlines future post-Corebridge merger
  • Don't keep checks with clerical errors
  • The insurance distributor that builds its own software will win the next decade
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Royal Neighbors Unveils Its 2026 Scholarship Recipients 2026 Royal Neighbors Scholars Making a Difference Across the Country
  • Ibexis Announces Expanded Bank Relationships and New Index Options for FIA Plus® and WealthDefender® Series
  • Agent Review Launches Video AI Identity Verification to Help Protect Insurance Professionals, Consumers and Public Trust
  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet