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The stimulus check doesn't disqualify anyone from medicaid and is to be used as you wish to use it. Look up "stimulus check and medicaid eligibility" so you can see it in black and white. "The Stimulus checks do not count as income, and therefore do not impact Medicaid beneficiaries or applicants. However, should the stimulus money not be spent within 12 months, it will be counted as an asset, and therefore could impact eligibility in the year ahead." That was pulled directly from:

https://www.medicaidplanningassistance.org/covid-19-stimulus-checks-impact/ So don't worry; use it as you like.
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This is from the "National Center on Law and Elder rights":

"In addition, the stimulus payment does not count as a Medicaid resource for 12 months. In other 
words, for the first year, the payment cannot cause you to have “too much” savings.
EXAMPLE:
An unmarried resident receives $1,050 monthly Social Security benefit and has $1,800 in savings. Each 
month she pays the nursing facility $1,000 from her income, and keeps $50 for personal needs.
After receiving the $1,200 stimulus payment in May 2020, her payment obligation to the nursing facility 
does not change. She continues to pay $1,000 monthly. 
After receiving the stimulus payment, her savings will increase from $1,800 to $3,000. To retain 
Medicaid eligibility, she must spend down her savings to under $2,000 within a year—before May 2021. 
Are There Restrictions on How I Can Spend the Stimulus Money?
In general, a resident can spend the stimulus money as they wish, including gifts and charitable 
contributions. This is the resident’s money to spend on their wants and needs."

This was for the 1200 received in May. I would think that the 600 just received will need to be used by January 2022.
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Even though you do not need to spend it down, putting it towards a pre-paid funeral is allowable (but not sure what the limit is...used to be $1500 but don't quote me on that -- please check for yourself).
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JoAnn29 Jan 2021
I cashed in a insurance policy, received 10k and was allowed by Medicaid to open a trust for Moms burial. This was during her spendown and before she entered the NH that Medicaid eventually paid for.
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Others have pointed to the information needed.

My understanding of these "stimulus" checks is they are NOT income, they are tax refunds. Whatever the Medicaid rules about any savings (others indicate 1 year to get it under 2k) need to be followed, but NH or other facilities should NOT be taking this as part of the facility payment.

If there's no burial fund, this would be an excellent way to use the funds. IF there was something the LO needs, glasses, hearing aid, etc, it could be spent on that as well. If there's already a burial fund and no immediate needs, then ANYTHING that would make your LO happy!
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A friend of the family is a chef, we decided my father could use some help in the kitchen so we hired her to cook. She’s been making up some tasty meals...he’s quite happy 😊
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I could use some advice too. My mom is in a long term nursing facility. She also needs to spend down this stimulus money. With everything going on with covid and not being able to visit among other things I have been able to get it spent down. April is coming up quick. I was told anything for her. Which is fine. I just don't know what to spend it on. I have read that they can donate it to a charity. But was told by the facility that they can't do that, it is to be spent on her needs. I am getting all these different answers and just want to make sure this is done right because I can't take care of her. She needs to keep her home in the facility. Any suggestions would also help me.
Not only, she has already gotten the 600 this year and has another 1400 possibly coming. they need to stop sending this stimulus money to people in nursing homes who have medicaid assistance for paying for it.
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BurntCaregiver Jan 2021
Go to the IRS website and print out the rules the government has made about the stimulus checks. They do not interfere with receiving government assistance and benefits. They do not count as income either.
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You don't have to "spend it down" because part of it is that the monies are tax exempt and they do not interfere with the receiving of government benefits (Medicaid, SNAP, SSI, rent subsidy). It is not owed to a nursing home as income and is also not included in a Medicaid spend down.
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As already answered, it doesn't count as income at all, and it doesn't count as an asset unless you leave it for more than a year.

So, spend it before the year is up. Prepaid final expenses as mentioned already. Glasses, hearing aids, dental care, lift chair, scooter or fancy walker ...

Clothing (6 identical "favorite" sweaters for when they are lost/damaged by laundry service?), warm lap blanket, Echo show for video calls with family, a prepaid year of Audible books or music, Harry & David pears or Lindt truffles or fresh flowers, Keurig machine and chai latte or hot chocolate pods
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I am a signer on Mom's account and we have accounts at the same bank. I move money into my account to keep her max balance down.
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dobu102 Feb 2021
I am not real sure that is a good idea. When your mom passes, Medicaid will do a 5-7 yr audit of your mom's finances in order to recoup some of their expenses while she was on Medicaid.

They will see this transaction and flag it. You may have to pay this back if it cannot be justified. Moving it may be okay but I wouldn't spend it on yourself.

When my wife's gmother passed, her daughters had to pay back some money they transferred to their accounts in a similar fashion. One transaction was only $20. So tread cautiously.
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Similar question: mom still has a mortgage and a car, which I think are excluded. Should I also be paying those down/off?
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igloo572 Feb 2021
YellowSub - once on LTC Medicaid, pls realize she will not have her monthly income - like her SS$- each month anymore as those on LTC Medicaid (living in a facility) are required to do a copay of basically all their monthly income, unless they have a spouse or legal dependent. Once on LTC Medicaid all they get to keep in income is a small PNA / personal needs allowance that tends to be $50-$60 for most states. So that mortgage or car note will need to be paid by someone else.

Keep in mind this means paying on a property or asset that you do NOT own as it remains in her name and remains an exempt asset for Medicaid while she is alive. Once dead it become an asset of her estate and likely subject to an attempt by the State to recoup Medicaid costs. Dealing with stuff like this can be done but IMO you have to have the long term wallet and sense of humor & for an undetermined period of time. If mom wants to keep her old place, family can honor her wishes but they need to be ok on taking on the risk.

if you don’t quite understand this, perhaps do your ? with the backstory on the house & car as a new fresh question, ok!
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I bought Mom a new really nice mattress.
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I echo the advice and link to medicaidplanningassistance.org. Bottom line, you have a year from date of receipt to spend the stimulus -- or else it becomes an asset that can disqualify the person from Medicaid. Ideas: burial account ($1500 in Mass.), headstone down payment, charity donations, gifts to grandchildren. I got pizzas for the nursing home staff. Some ideas I got from my mum's nursing home director: flowers for mum's room, clothes. I got some adaptive tops, pants, and nightgowns to make dressing easier (Google "adaptive clothing"). Do NOT use it to buy US bonds, stocks, collectible coins, etc., which would become assets.
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OldArkie Feb 2021
are you sure gift to grandchildren and charities are approved?
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I am a Power of Attorney for someone in a nursing home - I have provided her with everything she could possibly use so it sits in her personal account. I talked with Medicaid and asked if it would jeopardize her Medicaid status. They said no in view of where the money came from. Just use it for her if she needs anything. Otherwise just leave it in her personal account and if she passes, give the excess money back to medicaid and there would be NO problems to keep medicaid. Thank god - so that is what am going to do. She is in New Jersey.
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ef1055 Feb 2021
I was told that it can sit there in her account for 1 year. When that year is up it is then countable assets. That's where I am having a problem. She has a lot to use and only until April to use it. That is the one year date from when she got it.
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Others have suggested prepaying what has to be paid such as for funeral and burial plans. Pay off any debts your mother has, such as insurance or medical bills.

Does Mom need a couple nice, comfortable pairs of shoes? 
Does she go out, and need a warm winter coat?
What are her favorite colors? Get her several soft warm fleece zip-up-the-front jackets.
Get her a cozy, thick fleece blanket. (I liked one person's idea of getting her a good mattress).
If you see a great deal (like Costco often has), buy a dozen fleece blankets, and ask staff to place them on the beds of residents who’d most need one.

Do you have a favorite restaurant that is struggling for business? 
Give them your business and ask them to cater a lunch to the nursing home staff, as a way of thanking them for their care for your mom and the other residents. Cater ice cream to the residents -- sadly however, diabetics would have to be excluded.

Here were some other ideas I saw.
Heather’s surprise care packages
https://abcnews.go.com/Lifestyle/video/family-organized-surprise-local-nursing-home-staff-70704336

I was hoping to find a tad healthier lunch option, but this hotdog lunch idea is fun and heart warming.
https://rumble.com/v9abk1-surprise-lunch-for-nursing-home-workers.html

Here are some ideas for items to donate to the nursing home. Maybe you have friends and neighbors who’d like to share part of their stimulus checks. Together you can collect these items and donate them to one or several elder care facilities near you.
https://littlethings.com/lifestyle/donate-to-nursing-homes/2932221-10
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If a Medicaid resident is over-resourced (too much money) they have 30 days to spend it down without affecting their Medicaid status! They can spend the money on anything for themselves, for example, clothes, new tv, recliner, glasses, hearing aids, dentures.

Note: Even if they owe the nursing home money the home cannot take this money without the resident giving permission for them to do so! If your loved one tells you the nursing home is requesting this money, explain to them that the home has no right to this money it is for their personal use. If the residents understand this and agree to give the money to the home, it is their choice but make sure the home is not pressuring or telling them they are owed that money, they are NOT!
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worriedinCali Feb 2021
Nope for the stimulus they have a year to spend it. Period. Even if they already have the maximum allowed in the bank.
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Consult an elder law attorney.
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Imho, the addition of monies from Stimulus Payment #1 or Stimulus Payment #2 will typically follow the same spend down protocol for Medicaid eligibility.
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In Ohio I was told by the Medicaid LTC worker that residents had one year to the date the stimulus check was received to spend it.  Resident could spend the funds any way they choose.  So if they wanted to give it to a charity or give a gift to family member they could.  Of course I kept the email from the agency.
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