Md. Code Regs. 10.07.09.18 - Protection of a Resident's Personal Funds
A. A resident has the right to:
(1) Manage the resident's financial affairs;
or
(2) Choose any person who is
willing to handle the resident's financial affairs.
B. Except as authorized by being appointed
representative payee, a nursing facility may not manage a resident's funds
without an express written request from:
(1)
The resident; or
(2) An agent who
has legal authority to make decisions regarding the resident's funds.
C. Management of Personal Funds.
Upon written authorization of a resident or agent, a nursing facility shall
hold, safeguard, manage, and account for the resident's personal funds that are
deposited with the nursing facility as specified in this regulation.
D. Personal Funds in Excess of $50. A nursing
facility shall:
(1) Deposit a resident's
personal funds in excess of $50 in an interest-bearing account that is:
(a) Established and maintained by the
facility under one of the following terms:
(i)
In the name of the resident only,
(ii) In the name of the facility "in trust
for" or as the "trustee" for the individual resident, or
(iii) In a residents' pooled account, with a
separate accounting for each resident's share; and
(b) Located in a financial institution whose
accounts are insured by the:
(i) Federal
Deposit Insurance Corporation (FDIC),
(ii) Federal Savings and Loan Insurance
Corporation (FSLIC), or
(iii) Other
insurer approved by the Department; and
(c) Separate from any of the nursing
facility's operating accounts; and
(2) Credit all interest earned to the
resident's account at least quarterly.
E. Personal Funds Less Than $50. A nursing
facility may maintain a resident's personal funds that do not exceed $50 in a
petty cash fund or a non-interest-bearing account that is identified as a
residents' account.
F.
Establishment of Resident Accounts. When a nursing facility manages a
resident's financial affairs, the nursing facility shall establish and maintain
a system that:
(1) Ensures a full, complete,
and separate accounting, according to generally accepted accounting principles,
of each resident's personal funds entrusted to the nursing facility;
and
(2) Precludes any commingling
of resident funds with the nursing facility funds.
G. For all resident funds entrusted to a
nursing facility, the facility shall:
(1)
Establish and maintain adequate fire and theft coverage to protect a resident's
funds that are on the premises of the nursing facility; and
(2) Otherwise ensure the security of all
residents' personal funds deposited with the nursing facility by purchasing a
surety bond with the State as obligee on behalf of the nursing facility
residents.
H. Limitation
on Charges to Personal Funds. A nursing facility may not:
(1) Impose a charge against a resident's
personal funds for:
(a) An item or service for
which payment is made under Medicare or Medicaid, and
(b) A cost or fee incurred by the facility
for establishing and servicing the resident's accounts; or
(2) Use a Medicaid resident's personal funds
to offset a contribution of care debt unless authorized by the resident, the
resident's agent, or a court.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.