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AG Schmidt warns of nursing homes claiming residents’ stimulus checks

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Published: Jul. 14, 2020 at 3:18 PM CDT
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TOPEKA, Kan. (WIBW) - Attorney General Derek Schmidt is warning of national reports of nursing homes trying to improperly claim residents’ stimulus.

Kansas Attorney General Derek Schmidt says Kansans should use caution regarding COVID-19 stimulus checks amid national reports that some nursing homes have been trying to obtain ownership of the economic impact payments sent to residents on Medicaid.

The Federal Trade Commission says it has warned of facilities requiring residents on Medicaid to sign over funds, claiming that because the person is on Medicaid the facility is entitled to the payment. However, Congress says it has provided for the impact payments in the form of a tax credit, which under federal tax law do not count as resources for the purpose of being eligible for federal benefits programs like Medicaid.

Congress says because of this classification, nursing homes cannot assert a right to the payment merely because the resident is on Medicaid.

Schmidt says the stimulus funds came as a result of the Coronavirus Aid, Relief and Economic Security Act, a $2 trillion economic relief package that was signed into law by President Trump in March. He says payments continue to be issued by the federal government. The AG says the CARES Act provided economic impact payments to American households of up to $1,200 per adult.

The attorney general’s office says it has not received complaints of this occurring in Kansas but shares the information to alert Kansans to what has occurred in other states. Copies of alerts regarding this subject are available from the Federal Trade Commission and Internal Revenue Service.

Schmidt says any Kansan that believes their stimulus check was improperly claimed by a nursing home may file a complaint with the attorney general’s Consumer Protection Division online or by phone at 800-432-2310 to request a paper complaint form be sent by mail.

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