Chapter 514 - Nursing Facility Services - DHHR - State of West ...

514.9.6 Resident Personal FundsThe resident has the right to manage his or her own financial affairs and the administrator ordesignee shall not require residents to deposit their personal funds with the nursing facility, incompliance with the Code of Federal Regulations. Upon written authorization of a resident, theadministrator or designee shall hold, safeguard, manage and account for the personal funds ofthe resident deposited with the nursing facility as specified in the following sections.514.9.7 Deposit of FundsAccording to 42 CFR 483.10 (12)(3), an administrator or designee must deposit any resident’spersonal funds in excess of $50.00 in an interest-bearing account (or accounts) that is separatefrom any of the nursing facility’s operating accounts and that credits all interest earned on aresident’s funds to that account. In pooled accounts, there must be a separate accounting foreach resident’s share.An administrator or designee must maintain a resident’s personal funds that do not exceed$50.00 in a non-interest bearing account, interest bearing account, or petty cash fund.514.9.8 Accounting and RecordsThe administrator or designee must establish and maintain a system that assures a completeand separate accounting, according to generally accepted accounting principles, of eachresident’s personal funds entrusted to the nursing facility. The system shall preclude any cominglingof a resident’s personal funds with nursing facility funds or with the funds of any personother than another resident.Each resident’s financial record shall be provided through quarterly statements and on requestof the resident or his/her legal representative. For any transaction from a resident’s account,the administrator or designee shall provide the resident with a signed receipt and retain a copyof the receipt.The administrator or designee shall administer the funds on behalf of the resident in the mannerdirected by the resident or in the case of the resident’s inability to make financial decisions, thelegal representative.514.9.9 Notice of Certain BalancesAn administrator or designee shall notify each resident who receives Medicaid benefits orhis/her legal representative when the amount in the resident’s personal funds account reacheswithin $200.00 of the Supplemental Security Income (SSI) limit for one person. Should theamount in the account, in addition to the value of the resident’s other non-exempt resources,reach the SSI resource limit for one person, it may result in the individual losing eligibility forMedicaid and SSI.Department of Health and Human Resources Chapter 514: Nursing Facility Services Page 45January 1, 2013DISCLAIMER: This manual does not address all the complexities of Medicaid policies and procedures,and must be supplemented with all State and Federal Laws and Regulations.