Michigan Nursing Home Administrator (NHA) Practice Exam

What must a nursing home do with a recipient's deposits upon Medicaid eligibility?

1. Keep them for future charges

2. Return all required deposits

3. Transfer them to the state

4. Invest them in savings

The correct answer is: Return all required deposits

When a recipient becomes eligible for Medicaid, the nursing home is obligated to return all required deposits. This is based on federal and state Medicaid regulations designed to protect residents’ financial assets while ensuring they receive necessary care. Specifically, deposits that are not needed for ongoing services or care should be refunded to the resident or their estate. By returning the deposits, the nursing home assists in safeguarding the resident's finances, allowing them to utilize those funds for personal expenses or other needs that may arise. This is particularly crucial for maintaining the dignity and financial independence of residents who may find themselves in a vulnerable position due to the high cost of long-term care.