Possible Medicaid/Credit Card fraud?

Possible Medicaid/Credit Card fraud?


My father is on Medicaid and a resident in a Medicaid facility. I was just contacted by the private pay, for profit facility where he lives and told that he owed nearly $5,000.00 because he moved into the facility before he was approved for Medicaid. I have been paying (from his Social Security check) the amount first quoted to me when I signed him in to the Nursing Home. That takes up all his income and Medicaid recipients by definition have no other resources. I never agreed to pay any other amount nor was I told about the possibility of another amount. I didn’t sign any agreement to pay any other amount except the Medicaid amount. (I have Power of Attorney)

Today, when I called them to discuss this problem, per their request, the administrator asked/suggested the following (1) does he still have a major credit card? The answer is yes (2) Then I was told that the nursing home took credit cards and (3) just tell them the card number so they could charge the amount and then (4) she told me when the bill came I could tell the bank he had no more money and they would have to write it off. She told me that she was not suggesting I charge his unpaid balance, just wanted me to know they took credit cards “wink, wink”. Isn’t this fraud?

I refused to tell them the card number and told them I would be contacting his Medicaid Social Worker. Should I do anything else?

Yes, it is absolutely fraud. You need to contact whatever government office oversees Medicaid facilities in Texas.

As a compliment to friedo’s idea, I suggest you call Visa, Mastercard, Discover and American Express and let them know about this.
They’ll either be in ridiculously hot water with the companies, or in fact lose their ability to accept credit cards.
And really… why in the [expletives deleted] does a nursing home take credit cards for the bill?

Here’s a related question: Suppose Palikia’s brain had suddenly transformed into a thin gruel and she went ahead with the scam. Her father is not in good health. If he passed away with no assets and a $5k debt, would she inherit (or be liable for) the debt?


No. I believe how it works is that her fathers creditors would get first crack at any estate left behind, but beyond that Palikia would not be liable for the debt.

The usual disclaimer applies though [IANAL]

Thanks for your comments and advice. My concern is practical at the moment. It was tough finding a nursing home for my dad with a locked Alzheimer’s unit close enough to visit that also took Medicaid. Most places have long waiting lists. I don’t want to jeopardize his place there nor do I want to risk the possibility of retaliation by the staff. My inclination at the moment is to do nothing and wait and see what comes next.