The principle behind every household with a qualifying person (usually over 60) getting the payment is that it is cheaper to do this than to introduce means testing. Whether this is true I don't know.
Quote from Citizens Advice Bureau:
If you live in a care home, you get a reduced rate of Winter Fuel Payment. In 2009/10, this is £125 or £200 if you are 80 or over. However, if you live in a care home and get Pension Credit, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance (ESA), you will not get a Winter Fuel Payment at all.
Incidentally, I also have a free bus pass but I virtually never use it, and then only for non essential journeys on half empty buses which are already scheduled so it isn't actually costing the taxpayer anything.
Colin