Important Information Regarding $250 Stimulus Checks

The American Recovery and Reinvestment Act of 2009 (ARRA) authorized the Social Security Administration to issue a one-time payment of $250 to anyone who gets a Social Security benefit, Railroad Retirement, or Veterans Administration (VA) disability pension and most people who receive Supplemental Security Income (SSI).

The stimulus payment is not considered income and will not be counted as a resource for 10 months (including the month of receipt) in calculating benefits under Medicaid (or any other federal program or state program with some federal financing). The $250 will also not count as gross income for tax purposes. The checks will begin arriving in late May 2009. Recipients can save the payment if they want to, but they should make sure that it will not put their savings over the asset limit for any program benefits they may receive as of February 2010.

Below are recent responses provided by the U.S. Department of Health & Human Services regarding clarification on the payments made to long term care facility residents.

»Important Information Regarding $250 Stimulus Checks

Who is eligible for the one-time payment?

• Nearly 55 million Social Security and some Supplemental Security Income (SSI) beneficiaries (see below for exclusions) will receive a one-time payment of $250 each.
• Social Security and/or SSI beneficiaries with multiple sources of income will receive the $250. This would include nursing facility "spend down" residents and "medically needy" residents. Medically needy persons qualify for Medicaid categorically, but are "over income." These individuals can "spend down" to the Medicaid level by deducting "incurred" medical expenses.

Who is NOT eligible for the payment?

• SSI beneficiaries whose only source of income is SSI and who reside in a medical treatment facility (such as a nursing home or hospital) and Medicaid pays the cost of their care.
• Individuals who were not eligible for Social Security and SSI benefits at any time during the months of November 2008, December 2008, or January 2009 are not eligible for the one-time payment.

How can the payment be used?

• The payment can be used as the beneficiary chooses.
• If payment is received by a representative payee, the payee must use the payment for the beneficiary's needs and has a duty to use his or her judgment about the best use of the payment.
• At this time, long term care facilities cannot apply the $250 payment to the resident's cost of care, unless expressly directed to do so by the resident.

»Social Security Administration Frequently Asked Questions
»NCOA's Leaflet for LTC facility Residents