Which of the following is explicitly prohibited as a gift to Medicare beneficiaries?

• A. A cash gift of any amount
• B. A $12 non-cash gift
• C. A $20 non-cash gift
• D. A $75 non-cash gift

Answer: (A)

Gifts to Medicare beneficiaries are tightly regulated to prevent any inducement to use a particular provider or service. The key rule is that cash gifts are never allowed, because cash can directly influence a beneficiary’s choices. Non-cash gifts can be acceptable only if they are nominal in value and fit within an annual limit per beneficiary. In practice, that usually means up to a small amount per item (commonly around $15) and no more than about $75 to any one beneficiary in a year. So a small non-cash gift, like a $12 item, would typically be permissible if it stays within those limits; a $20 non-cash gift would exceed the per-item nominal value and could violate the rule; a $75 non-cash gift could be allowed only if it doesn’t push the beneficiary’s total gifts for the year over the cap. The option that is explicitly prohibited is the cash gift of any amount, since cash is never allowed as a beneficiary gift.