October 23, 2019
Reviewed and updated bykelsey davis,
- Carer
there is close to34 millionAmericans care for their parents, and many are not compensated for their time. It is estimated that the value provided by caregivers “for free” reaches$375 billionannually. This is double what is actually spent on home care services.
Being a caregiver is rewarding, but it comes at a cost. The average caregiver spends 20 hours a week caring for loved ones and spends on average$ 5.500each year out of pocket.
At the Medicare Plan Finder, we know how hard you work and how much financial support you deserve, and we want to help you understand how you get paid to be a parent.
Can Medicare pay caregivers?
Currently, Medicare does not pay caregivers. However, somestate Medicaid programspay family members to provide care.
Medicaid Caregiver Compensation
Medicaid caregiver payment varies bystate, but all states (and the District of Columbia) offer Medicaid waivers that allow qualified individuals to manage their own care. This means that your parents can hire and fire their own caregivers. Certain states will allow a family member to be hired to provide care.
Eligibility, benefits, coverage and rules vary depending on the state in which you live. Some may pay for family caregivers, but this excludes spouses or in-laws. Others can only provide compensation if you do not live in the same household as the person in your care.
When looking for programs in your state, keep in mind the names of the programs. Each state will have a different name (Self-Managed Care, In-Home Supportive Services, etc.).
To begin the process, your parents must qualify for Medicaid and meet state requirements for caregivers. Contact your state Medicaid office to start the application and for more information on eligibility.
Your parents will be assessed for risks, needs, strengths, and abilities that meet the Centers for Medicare & Medicaid Services (CMS) requirements.
You and your parents will write a service plan that details the type of daily care that will be provided. This may include bathing, dressing, preparing meals, eating, doing laundry, driving, and other daily tasks. When this plan is established, you will be approved or denied for the state's Medicaid compensation program.
Earn money to be a veteran caregiver
If your father is aveteran, may qualify for theVeteran-led home and community-based careprogram. This program is available in 37 states and the District of Columbia. It provides several medical benefits for people who need a high level of care in a nursing facility but want to live at home with a caregiver.
The average monthly allowance is $2,500. The veteran will choose the caretaker. He can be a family member, including spouses, siblings, or children/grandchildren.
Another program that can help provide financial compensation isAssistance and Service (A&A). This program provides benefits to veterans who qualify for a VA pension and have served at least 90 days on active duty and one day during the war.
The program is intended to supplement the pension and help cover the cost of a caregiver. The caregiver can be any member of the family.
To qualify for A&A, at least one of the following must apply:
- Confined to bed due to disability
- Being in a nursing home due to physical or mental limitations
- Have limited vision (corrected visual acuity of 5/200 or less in both eyes)
- Needs help from another person to help with activities of daily living (bathing, dressing, feeding, etc.)
Long-term care and caregivers insurance
long term careInsurance is a policy that helps cover the cost of long-term care. These costs may include assisted living, nursing homes, or home care (including caregivers). Plan benefits vary, but if home care coverage is included in the plan, home care caregivers may also be covered.
However, it's important to note that all plans are different and some plans may exclude these benefits. Also, some plans may have restrictions on who qualifies to be a paid caregiver. Some plans may exclude spouses or in-laws, and others may exclude family members entirely.
Other paid family caregiver options
If your parent doesn't qualify for any of the above programs, don't worry! There are other ways to get some kind of compensation. The following are indirect ways that explain how you are paid to be a caretaker parent:
Fee deduction:It may not be the same as a monthly paycheck, but tax deductions can help you save money each year for certain incurred expenses. You can pay off certain expenses, such as dental expenses, medical expenses, home modifications, and transportation costs.
Payment from a family member:Asking your parents or another family member for payment can be awkward or awkward. Put all those feelings aside and discuss needs, salaries, hours, etc. Create a contract that includes salary and services rendered.
Area Agencies on Aging:Each state has a location.Area Agency on Aging. You can find the nearest office by searching for your city in the directory tool. Staff at each location can help you find additional programs that you or your loved one may qualify for.
Paid vacations:If your parents' needs are short-term, you may be eligible for paid leave through your employer. This isn't guaranteed, but it's okay to talk to your HR representative to see what kind of paid leave policy your company offers. Something as small as a few weeks of pay can still provide financial protection and allow you to return to work in the future.
remote work:Paid leave may only help for a short time and may not be the best solution for you and your family. Talk to your employer and see if telecommuting is an option. Again, each company will vary, but there's nothing wrong with asking. Working full time and being a caregiver can be difficult, so consider your workload when making these decisions and having these conversations.
Support for caregivers and power of attorney
There is no question of the weight that caring for a loved one can place on your shoulders. If you are a caregiver, it is essential that you feel supported to continue helping your loved one on a day-to-day basis.
Medicare Plan FinderCaregiver supportThe page provides specific information for the caregiver about the needs of their loved one. Find out how you can get support for yourself as you care for your loved one, stress relief tips, support groups you can join, andNotarial Power (POA)Information.
Being a caregiver does not automatically give you the ability to make certain medical, legal, or financial decisions on behalf of your parents. To do this, you will need to become their lawyer.
If your parents are mentally competent, they can sign over your rights to you. If they are not, you will have to go to a judge and have your rights granted.
Medicare coverage and caregivers
As a caregiver, one of your biggest concerns, in addition to understanding how parents are paid, may be making sure your loved one has the best health plan possible for their unique needs and budget. At the Medicare Plan Finder, we want to help make that happen!
We specialize in educating seniors about Medicare Advantage, Medicare Supplements, andPlanes of Part D. Our authorized agents have contracts with all the major carriers so you know your parents are seeing the best plans at the best price. call us at844-431-1832oClick hereto contact an agent.
This post was originally published on May 30, 2019 and was updated on October 23, 2019.