I'm not sure why a Medicaid recipient in a LTC facility would need a stimulus check. My MIL is in this situation. She hasn't had a tax return since 2016.
I tried to be proactive and called NH administration to find out if a person on Medicaid who lives permanently in a NH would even get a stimulus check in the first place. NH seems to think she will not get a check - primarily because no tax return has been filed in multiple years (no return is required of her anymore). However, I am not convinced she won't get one and I won't know what to do if it arrives! NH said we will deal the stimulus check if one actually arrives for her. Not sure what that means, but a $1200 check is clearly not worth it compared to the benefits Medicaid is currently paying out for the NH.
I am on Medicaid and from what I can find, it's not counted as income. If someone is in a nursing home or skilled care, it might be a different can of worms. If you aren't, it shouldn't be an issue. I would call Medicaid to make sure.
In health insurance you are allowed a certain amount of income. In LTC, no problem if you stay under the cap allowed.
Actually, I think there will be or should be some leeway here. When u get the check, call your caseworker.