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Report: Nursing Home Workers Stealing Residents’ Savings
Posted By Tamara Lytle On October 18, 2013 @ 4:12 pm In Bulletin Today,Money & Savings | Comments Disabled
Thousands of residents of long-term care institutions have their personal savings stolen by people who are supposed to care for them, a disturbing USA Today investigation  finds.
Investigative reporter Peter Eisler identified 1,500 recent cases in which state and federal regulators cited nursing homes for mishandling such funds . When residents ask for help handling their finances, the federal Centers for Medicare & Medicaid Services (CMS) requires that these savings be kept in a trust fund. The trust fund is supposed to work like a conventional bank account that accrues interest and generates regular statements.
“In scores of cases, employees or administrators siphoned huge sums of money from trust accounts — hundreds of thousands of dollars in some instances — for everything from shopping and gambling sprees to routine household expenses,” Eisler reports. “In hundreds more cases, facilities failed to pay interest on the funds, could not account for their holdings, or did not carry adequate insurance to protect the money from loss or theft.”
Declining to comment on the USA Today report, a CMS spokeswoman pointed out that the agency is responsible for the system that monitors nursing homes but that states are responsible for making sure facilities properly train their staffs and protect residents.
Some of the findings of the USA Today investigation:
The families of nursing home residents as well as facility administrators need to monitor trust funds, says Sally Hurme, an elder-law attorney at AARP. “Without sufficient oversight of these funds, the temptation to embezzle funds can become a reality,” Hurme says. “Nursing home residents who have entrusted much of their life savings  to be spent only on their care need to be assured that their funds are safe in the hands of the facility.”
Photo: Andrew Magill/Flickr 
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URLs in this post:
 investigation: http://www.usatoday.com/story/news/nation/2013/10/16/nursing-home-trust-fund-thefts/2967925/
 Image: http://blog.aarp.org/wp-content/uploads/2013/10/bankroll.png
 mishandling such funds: http://blog.aarp.org/2013/09/12/does-my-financial-adviser-have-my-best-interest-at-heart/?intcmp=AE-BLIL-BL
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 .: http://www.aarpfinancial.com/content/aarpfinancial/home.html?intcmp=AE-BL-MON-DISC
 life savings: http://blog.aarp.org/2013/08/19/retirement-savings-its-worse-today-than-a-year-ago/?intcmp=AE-BLIL-BL
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