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It’s the relatives money. They are entitled to it. Not sure why Medicare is a factor here. If you meant Medicaid, again the relative can keep the money. It won’t affect their eligibility. It won’t be considered an asset as long as it’s spent within a year.
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Yes, sorry, I meant Medicaid. Thank you very much!!
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There was a news report about this crime being committed against our elders.

They said to contact your state's attorney general office and file a complaint.
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The stimulus check does not belong to the NH. It belongs to the resident. Its to be used on them personally, not towards their care. It will not effect their spenddown for a year.
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This is from a download I kept. Its was posted by the National center for elder law.

"Will Stimulus Checks Affect My Medicaid Eligibility?
No. Under Medicaid rules, a stimulus payment is not counted as income. Therefore, receiving a 
stimulus payment does not change a resident’s monthly payment (often called a “patient pay amount” or 
“share of cost”). The resident pays the same monthly amount to the nursing facility and keeps the stimulus 
payment for their own use. 
In addition, the stimulus payment does not count as a Medicaid resource for 12 months. In other 
words, for the first year, the payment cannot cause you to have “too much” savings.

EXAMPLE:
An unmarried resident receives $1,050 monthly Social Security benefit and has $1,800 in savings. Each 
month she pays the nursing facility $1,000 from her income, and keeps $50 for personal needs.
After receiving the $1,200 stimulus payment in May 2020, her payment obligation to the nursing facility 
does not change. She continues to pay $1,000 monthly. 
After receiving the stimulus payment, her savings will increase from $1,800 to $3,000. To retain 
Medicaid eligibility, she must spend down her savings to under $2,000 within a year—before May 2021. 

Are There Restrictions on How I Can Spend the Stimulus Money?
In general, a resident can spend the stimulus money as they wish, including gifts and charitable 
contributions. This is the resident’s money to spend on their wants and needs."

If you get an argument tell them they are wrong.
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