Exciting News!

As of April 1, 2023, Nexsen Pruet will merge with
Maynard Cooper & Gale. 

Together we are 

Maynard Nexsen Logo

We look forward to serving our clients from 23 offices and with 550 attorneys coast-to-coast.

FTC Warns Nursing Homes and Assisted Living Facilities Not to Take Residents’ Stimulus Checks


On May 15, 2020 the Elder Justice Coordinator for the Federal Trade Commission warned nursing homes and assisted living facilities not to request that Medicaid residents sign over their CARES Act stimulus checks. The FTC reports hearing of nursing homes and assisted living facilities requiring Medicaid residents to sign over the stimulus payments.

However, per the FTC, the stimulus checks are considered tax credits under the CARES Act, and therefore do not count as "resources" for federal benefit programs like Medicaid (https://www.consumer.ftc.gov/blog/2020/05/did-nursing-home-or-assisted-living-facility-take-your-stimulus-check). For this reason, the government cannot seize the CARES Act stimulus payments, and nursing home and assisted living facilities cannot take the money just because a resident is on Medicaid.

In the event a nursing home or assisted living facility has taken a resident’s stimulus money, the FTC is instructing residents to first contact their local state attorney general for assistance in getting the money back, and then to file a complaint with the FTC.

Now that the FTC has clarified the tax status of the payments, if a nursing home or assisted living facility has required residents to turn over stimulus money they should consider the best way to immediately return the payments to residents.

If you have any questions or would like more information, please contact Alice Harris at 803.253.8284 or ahrris@nexsenpruet.com or your regular Nexsen Pruet attorney.

Our insights are published as a service to clients and friends. They are intended to be informational and do not constitute legal advice regarding any specific situation. 

About Nexsen Pruet

Nexsen Pruet serves clients from nine offices across the Southeast. With more than 200 lawyers and professionals, the firm provides regional, full-service capabilities with international strengths.

Related Capabilities

Media Contact

Tina Emerson

Chief Marketing Officer

Direct: 803.540.2105

Jump to Page

Tracking Technologies and Advertising. You can set your browser to refuse all or some browser cookies or to alert you when cookies are being sent. If you disable or refuse cookies, we may not be able to provide you with the full features, functionality, or performance of our Sites.