Economic Impact Payments in Residential Facilities
Please note: On June 16, 2020, the IRS issued an alert which included the following information;
- "The payments are intended for the recipients, even if a nursing home or other facility or provider receives the person's payment, either directly or indirectly by direct deposit or check."
- "An EIP is not such a benefit; the EIP belongs to the Social Security or SSI beneficiary."
- "...Economic Impact Payments do not count as resources that have to be turned over by benefit recipients, such as residents of nursing homes whose care is provided for by Medicaid."
In March 2020, Congress passed H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, authorizing economic impact payments to many Americans. On April 17, the Ohio Department of Developmental Disabilities (DODD) issued guidance, recommending that county boards do not attempt to recoup the economic impact payments from Ohioans with developmental disabilities.
The economic impact payments are intended to provide emergency relief and support to both Americans and the economy during the COVID-19 pandemic. The payments are not considered income when calculating eligibility for Medicaid, food stamps, and other federal benefit programs. The payment will therefore not affect Medicaid eligibility unless the person has funds remaining after twelve months from the date of receipt. As such, the payments should be treated differently than other forms of earned or unearned income received by people with developmental disabilities.
Consistent with the previous guidance and the intent of the CARES Act, economic impact payments should not be used to offset benefits a person with developmental disabilities would otherwise receive from or costs otherwise covered by state or local governmental entities.
For residents of intermediate care facilities, the economic impact payments should not be calculated into the patient liability for the cost of care.
For residents of licensed waiver facilities, the economic impact payments should not be calculated in an individual’s income available for past, current, or future room and board.
The resident’s support team should coordinate to determine the most effective use of the person’s economic impact payment