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In the past couple years the federal government issued a series of checks under the Coronavirus Aid, Relief, and Economic Securities (CARES) Act. You could have received them either as a direct deposit, a check, or on a debit card. If you applied for Medicaid (or had a redetermination), you might have been asked about a stimulus payment.
The Department of Human Services was excluding these payments from determining eligibility. Common amounts of these payments were $1,400 and/or $600, but additional payments of varying amounts could have been received by people in other financial situations. DHS did not count that money for 12 full months. That period has expired or will expire soon.
DHS is sending notices to people who, when during an interview, informed DHS they received these payments. If the money was received or deposited into your bank account, they might be able to get a bank balance for a previous month to verify it has been spent. If the money was on a separate card, you will have to talk to an eligibility worker to inform them you spent it. If you still have it, you should spend it on qualifying things (i.e. household or personal good) but do not give it away. If you still have the money after the 12-month exclusion period, it could make you ineligible for some government assistance.
During the emergency period, while it lasts, an eligibility worker should be able to take your statement that the money is gone and what it was spent on, but they may still ask for proof depending on the particulars of your case. You can do this by going into the office to speak with a worker, calling the Virtual Eligibility Center, calling the local office, or sending or dropping off a current bank statement for the account where the deposit was made. If sending a statement is the preferred option, it's best to include a note explaining your intention with the statement. This should be enough for the worker to update the case.