Stimulus May Arrive as a Debit Card

There have been reports of some nursing facilities requiring residents to sign over stimulus checks from the IRS and now some debit cards are being sent.  As early as last week some people started receiving a Visa Debit Card in an unmarked envelope.  These cards have a Department of the Treasury stamp on the paperwork, and state something like "Enclosed is your Economic Impact  Payment Card".  Unfortunately, they also appear much like credit card offers, refinance offers, and other standard junk mail that we all receive.  Since they are unmarked, it is possible these cards could pass to a resident without proper precautions in place by the facility to protect the person.

The card instructions state "Shop anywhere Visa Debit Cards are accepted..." and "Get cash back at the register with PIN..."  Anyone with the card can access it.  These cards are pre-loaded with $1200 or $2400 depending on the individual's status.  The cards were sent with no previous notice and appear to be arriving for people on Social Security and other benefits at this time, however, it is unclear to the general public at this time exactly who will receive the cards. 

Initially, we were told that those living in nursing facilities or receiving SSI would receive a paper check or direct deposit depending on what information the IRS has regarding the person.  The paper check, as indicated before, saw some facilities having the residents sign them over.  This signing over of the checks is still being investigated in some areas.   A debit card brings an entirely new aspect and list of concerns to the table for ICF providers and others.  Some of the concerns that must be considered:

1.  Accountability - who will account for the card, the spending on the card, and records for the card?  How will the facility prove a resident used the money and someone else did not?

2.  Lost cards - as we all know our residents in an ICF are here for care and assistance.  They are sometimes forgetful, and sometimes they misplace items.  The facility needs a plan to ensure no debit cards are lost - once lost anyone with the card can use it and it is very possible the IRS will not replace it. 

3.  Moving the money - the money on these cards can be used or moved into an account.  Moving into a trust fund would likely be the best bet; however, it has to be clearly documented where the money came from and that it was stimulus money.  This will help avoid the $2000 limit on accounts and allow this to not account as assets.  Keep in mind though, there is no clear direction from the IRS, CMS, or most states yet regarding what documentation may or may not be required to maintain the money as stimulus funds moved from debit cards.  There will need to be a way to ensure it does not appear simply as cash on hand during an audit or a Medicaid review - hopefully, more guidance in this area will be forthcoming. 

4.  Theft - Unfortunately the fact is sometimes we hire people willing to steal from our residents.  It's sad but true.  Much like accountability above, there needs to be a system in place to ensure the card does not benefit staff or anyone else other than the resident receiving it. 

Each facility administration needs to be on the lookout for these cards in the mail.  I would suggest that if one is received, the manager, staff, or person receiving it at the home should notify the administration immediately.  An IDTeam meeting for ICF homes will likely need to be held and the above four areas addressed by the team with the resident to ensure we protect funding for the people we serve.