OAR 411-070-0095: Resident Funds

(1) Each Medicaid resident is allowed a monthly amount for personal incidental needs. For purposes of this rule, personal incidental funds (PIFs) include monthly payments as allowed and previously accumulated resident savings. (2) FACILITY RESPONSIBILITY. (a) The facility must not charge for items included in the bundled rate or for other items or services for which funding can be provided through the Medicaid agency or another non-resident source. (b) The facility must hold, safeguard and account for a resident's funds if he or she requests such management; or if the case manager requests on Form SDS 0542 that the facility perform such management. (c) The facility must maintain a record of the request by the resident, case manager or resident representative on Form SDS 0542, covering all funds it holds or manages for residents. (d) The facility must manage resident funds in a manner in the resident's best interest. (A) The facility must not charge the resident for holding, disbursing, safeguarding, accounting for, or purchasing from resident funds. Charges for these services are included in the Nursing Facility Financial Statement, Form SPD 35 or 35A and are considered allowable costs reimbursable through the bundled rate. (B) The cost for items charged to resident funds must not be more than the actual purchase price charged by an unrelated supplier. (C) The facility may not charge SPD residents or other sources for items or services furnished if all residents receiving such items or services are not charged. Charges must be for direct, identifiable services or supplies furnished to individual residents. A periodic "flat" charge for routine items, such as beverages, cigarettes, etc., is not allowed. Charges must be made only after services are performed or items are delivered. (D) The facility must keep any funds received from a resident for holding, safeguarding and accounting separate from the facility's funds. (E) The nursing facility may request technical assistance from SPD/Type B AAA staff, however, responsibility for managing resident funds in the resident's best interest remains with the facility. (F) When a facility is a resident's representative payee, it must fulfill its duties as representative payee in accordance with applicable federal regulations and state regulations that define those duties. (G) Facilities holding resident funds must be insured to cover all amounts held in trust. (3) DELEGATION OF AUTHORITY. (a) The resident may manage his or her personal financial resources, including PIFs, and may authorize another person or the facility to manage them. If appropriate, the facility must, upon written authorization by the resident, resident representative, or case manager on the resident’s behalf, accept responsibility for holding, safeguarding, spending and accounting of the resident’s funds. (b) At the time of admission, the facility must assure that the resident, or representative delegating such responsibility to the facility, completes Form SDS 0542, Designation of Management of Personal Incidental Funds. The facility must sign the form acknowledging responsibility. The facility must retain the original in the resident's account records, with copies to the resident and SPD. (c) The resident wishing to change delegation must do so by completing a new Form SDS 0542 that must be available at the facility. (d) SPD cannot be delegated to account for the resident's funds. (4) RESIDENT ADMISSION. (a) The facility must provide each resident or resident representative with a written statement at the time of admission that: (A) States the facility's responsibility to pay for all services, supplies and facility equipment required for services (basic rate); (B) Lists all services provided by the facility that are not included in the facility's basic rate; (C) States that there is no obligation for the resident to deposit funds with the facility; (D) Describes the resident's right to select how personal funds will be handled. The following alternatives must be included: (i) The resident's right to receive, retain, and manage his or her personal funds or have this done by a legal guardian, or conservator; (ii) The resident's right to delegate on the SDS 0542 another person to act for the purpose of managing his or her personal funds; and (iii) The facility's obligation, upon written authorization by the resident or representative, to hold, safeguard and account for the resident's personal funds in accordance with these rules; (E) States that any facility charge for this service is included in the facility's basic rate, and that the facility cannot charge for resident fund management or charge residents more than the actual purchase price of items at an unrelated supplier; (F) States that the facility is permitted to accept a resident's funds to hold, safeguard and account for, only upon the written authorization of the resident or representative, or if the facility is appointed as the resident's representative payee; and (G) States that if the resident becomes incapable of managing his or her personal funds and does not have a representative, the facility is required to manage his or her personal funds if requested on the Form SDS 0542 by the case manager. (b) The facility must obtain documentation on the Form SDS 0542 of: (A) Resident intention to manage own funds; or (B) Resident, resident representative, or case manager delegation to another individual or the facility to manage the resident’s funds. (5) RESIDENT ACCOUNT RECORDS. (a) The facility must maintain a Resident Account Record (Form SDS 713), on an ongoing, day-to-day basis, for each resident for whom the facility is holding funds. Each receipt or disbursement of funds must be posted to the resident's account. Posting from supporting documentation must be done within seven days after the transaction date. (b) The resident account record must show, in detail with supporting documentation, all monies received on behalf of the resident and the disposition of all funds so received. Persons shopping for residents must provide a list showing description and price of items purchased, along with payment receipts for these items. (c) Individual resident accounts must be reconciled and listed by the facility at the end of each calendar month. (d) Petty cash accounts must be reconciled within ten days of receipt of the bank statement. (e) The facility must maintain a monthly list that separately lists the petty cash and savings account balances for each resident for whom the facility is managing funds. (f) Records and supporting documentation must be retained for at least three years following the death or discharge of the resident. (g) Accumulations of $50 or more. (A) The facility must, within 15 days of receipt of the money, deposit in an individual interest-bearing account any funds held in excess of $50 for an individual resident, unless this money is being managed in a Trust and Agency Account by SPD. (B) The account must be individual to the resident, must be in a form that clearly indicates that the facility does not have an ownership interest in the funds, and must be insured under federal or state law. (h) Accumulations of Under $50. (A) The facility may accumulate no more than $50 of a resident's funds in a pooled bank account or petty cash fund that must be separate from facility funds. (B) The interest earned on any pooled interest-bearing account containing residents' petty cash must be either prorated to each resident on an actual interest-earned basis, or prorated to each resident on the basis of his or her end-of-quarter balance. (6) RESIDENT RIGHTS. (a) The resident must be allowed to manage his or her own funds, or to delegate their management to another, unless the resident has been determined to be incompetent by a court of law. A resident who was not adjudicated incompetent may always decide how to spend his or her own funds. (b) Facility staff delegated to manage resident funds must follow guidelines outlined in this rule and other state and federal laws and regulations that may apply in order to assure that decisions not made by the resident are made in his or her best interest. (c) The resident, family or friends has the right to be free from solicitation from the facility to purchase items that are included in the facilities daily rate. (d) The resident must not be charged for any item included in the facility's daily rate unless the facility can show at least one of the following: (A) The resident made an informed decision to purchase the item, understanding that a similar and appropriate item is included in the daily rate; (B) The family requested that the facility purchase the item, understanding that a similar and appropriate item is included in the daily rate; or (C) The resident is not currently able to make an informed decision to purchase the item, but did so prior to current incapacity. (e) The resident, family or friends must not be charged for any drug designated by the Food and Drug Administration as less-than-effective unless it can show that both the physician and the resident made an informed decision to continue use of the drug. (f) Prior to purchasing an item that is included in the facility's daily rate or is over $50, the facility must consult with the SPD/Type B AAA case manager. (g) The facility must not charge resident funds for any item or service that benefits the facility, facility staff or relatives or friends of facility staff, unless it can show that the resident made an informed decision to purchase the item or service. (h) When the facility or SPD is of the opinion that a resident is incapable of managing personal funds and the resident has no representative, the facility must refer the resident to the case manager in the local SPD/Type B AAA, who will consult with the resident regarding resident preference. If the attending physician agrees, as documented on the Form SDS 544, Physician's Statement of Resident's Capacity to Manage Funds, that the resident is incapable of handling funds, the case manager will attempt to find a suitable delegate to manage the resident's funds. If no delegate can be found, the facility must assume the responsibility. If the resident disagrees with the designation of a delegate, the designation cannot be made, and the resident retains the right to manage, delegate, and direct use of his own money, if not adjudicated incompetent. (7) ACCESS TO FUNDS, RECORDS. (a) The facility must provide each resident or delegate reasonable access to his or her own financial records and funds. Reasonable access is defined as seven business days for records and one business day for funds. (b) The facility must provide a written statement, at least quarterly, to each resident, delegate, or a person chosen by the resident to receive the statement. The quarterly statement must reflect separately all of the resident's funds that the facility has deposited in an interest-bearing account plus the resident funds held by the facility in a petty cash account or other account. The statement must include at least the following: (A) Identification number and location of any account in which that resident's personal funds have been deposited; (B) Balances at the beginning of the statement period; (C) Total deposits with source and withdrawals with identification; (D) Interest earned, if any; (E) Ending balances; and (F) Reconciliation. (c) The facility must provide a quarterly Resident Account Record on Form SDS 713 to the local SPD/Type B AAA within 15 days following the end of the calendar quarter and provide a copy to the resident or an individual delegated by the resident to receive the copy. (d) The resident or delegate must have access to funds in accordance with OAR 411-085-0350. (e) Within ten business days of the resident's transfer or discharge, or appointment of a new delegate as documented on the Form SDS 0542, the facility must provide a final accounting and return to the resident, or the delegate, all of the resident's funds that the facility has received for holding, safeguarding, and accounting, and that are maintained in a petty cash fund or individual account. (8) CHANGE OF OWNERSHIP. (a) The facility must give each resident or delegate a written accounting of any personal funds held by the facility before any transfer of facility ownership occurs, with a copy to the local SPD/Type B AAA. (b) The facility must provide the new owner and the local SPD/Type B AAA with a written accounting of all resident funds being transferred and must obtain a written receipt for those funds from the new owner. (9) LOCAL SPD/TYPE B AAA RESPONSIBILITY. The local SPD/Type B AAA must: (a) Monitor receipt of SDS 713 forms and review them quarterly for appropriateness of expenditures; (b) Monitor resident resources for resources over the current Medicaid limit; (c) For residents incapable of managing their own funds and having no one to delegate to do so, attempt to determine resident wishes, seek physician input on the physician statement, and find a delegate, delegating the facility if necessary and not in conflict with resident wishes; (d) Notify the facility of inappropriate expenditures and report uncorrected problems to SPD Central Office and assist residents in obtaining legal counsel; and (e) Track expensive or reusable items purchased for residents through resident funds or by SPD and assure their appropriate use after resident death. (10) DEATH OF RESIDENT. (a) Within five business days following a resident's death, the facility must send a written accounting of the resident's funds to the executor or administrator of the resident's estate. If a deceased resident has no executor or administrator, the facility must provide the accounting to: (A) The resident's next of kin; (B) The resident's representative; (C) The clerk of probate court of the county in which the resident died; and (D) Estate Administration Unit, Seniors and People with Disabilities, P.O. Box 14021, Salem, OR 97309-5024. (b) Within five business days following a resident's death, the facility must: (A) Send a written accounting of the resident's funds and a listing of resident personal property, including wheelchairs, television sets, walkers, jewelry, etc., to the local SPD Estate Administration Unit; (B) Hold personal property for 90 days, unless otherwise instructed by the SPD Estate Administration Unit; and (C) Comply with the laws of Oregon regarding disbursal of resident funds, and any advance payments, or contact the Estate Administration Unit, SPD, for more detailed instructions. [ED. NOTE: Forms referenced are available from the agency.]