(FinancialHealth.net) – When President Donald Trump signed the CARES Act into law in March 2020, he intended Americans to use the stimulus payments to get through the COVID-19 crisis. Unfortunately, some senior living facilities are trying to steal the money from their residents. Bipartisan lawmakers are trying to put a stop to it.
In May, the Federal Trade Commission alleged some living facilities had been coercing their low-income residents into signing over their $1,200 Economic Impact Payments. Ordinarily, if a person receives Medicaid, a senior home can take the majority of their taxable income, leaving a little cash to the recipient for a personal allowance. The CARES Act checks, however, were not supposed to be treated as taxable income.
Reps. Frank Pallone (D-NJ) and Richard Neal (D-MA) are demanding facilities stop taking the money and pay back any they’ve already claimed.
House Ways and Means Chairman Richard E. Neal (D-Mass.) and House Energy and Commerce Chairman Frank Pallone Jr. (D-N.J.) call on @CMSGov to stop nursing homes from seizing residents' stimulus checks. pic.twitter.com/XiRUzr4xGY
— Ally Versprille (@allyversprille) June 8, 2020
In the Senate, Ron Wyden (D-OR) and Chuck Grassley (R-IA) are also demanding the homes stop the “improper and unlawful” practice. Oregon’s attorney general issued a scam alert, warning residents of the practice.
The fact that these facilities are forcing some of the country’s most vulnerable to sign over their stimulus payments is outrageous. The federal government needs to take corrective measures and stop the practice right away.
~Here’s to Your Financial Health!
Copyright 2020, FinancialHealth.net