Caregiving for a relative can be both rewarding and challenging. In addition to the mental and physical demands, caregivers also experience financial hardships as their care responsibilities make working difficult. Often caregivers in this situation are forced to reduce their hours at their job or even leave the position entirely.
These financial realities often lead caregivers to search for options on how to be compensated for their caregiving work. Though it may sound like a foreign concept, pay for family members caring for loved ones is more common than people realize. Below are options for programs and resources offering caregiver compensation and information about how to qualify for benefits.
Medicaid represents one of the best options to qualify for caregiver compensation. State Medicaid programs offer long-term care benefits through self-directed services, which allows Medicaid to pay the enrollee directly instead of managing their care directly through the agency. The recipient can then use the money to pay for services they feel they need, including:
NOTE: These programs do not consider the caregiver’s assets. That means as a caregiver, you would be able to keep your own savings without impacting your loved one’s ability to qualify for assistance to pay you.
Who qualifies?
To receive this benefit:
Medicaid-based programs allow a family member to be a paid care provider, but many states exclude spouses and legal guardians from receiving benefits. Twelve states have SDS programs that allow a spouse to be a paid caregiver.
NOTE: Medicaid programs require that the applicant have limited personal resources or savings (generally less than $2000). If the applicant has assets beyond the maximum allowed, they would need to use those assets to pay for care before they would be eligible for Medicaid coverage.
How much can you get?
State-dependent
How to enroll
To apply, visit your state’s Medicaid website. As with any cash assistance, budgets for these programs are fixed, so your state may have a waiting list for benefits. If you think you qualify, apply as soon as possible rather than waiting until you’ve exhausted your savings.
Along with Medicaid, Veteran’s Affairs benefits are the most robust option to explore for caregiver compensation. If you are caring for a retired military member, several options under the VA offer financial support for family caregivers. These options are:
These options are explained in detail below.
The Program of Comprehensive Assistance for Family Caregivers provides financial support to family members caring for qualified military veterans.
Who qualifies?
Caregivers can be immediate family or extended family, including stepfamily. Under PCAFC, eligible family caregivers can receive a monthly stipend, health care benefits, 30 days a year of respite care, and other supports.
How much can you get?
The PCAFC monthly stipend amount is based on:
In 2020, a veteran unable to self-sustain in the community who lived in Dallas, Texas would have received a stipend of $2,803.17.
How to Enroll
Visit the PCAFC site to apply online. The caregiver and the veteran must apply together.
** -- By October 1, 2022, PCAFC benefits will expand to include eligible veterans of any era who were seriously injured in the line of duty.
Veteran Directed Care (VDC) provides a monthly stipend to veterans to pay for the care they need. Under VDC:
Who Qualifies?
How much can you get?
The VDC monthly stipend:
How to Enroll
A&A is another way veterans can get money added to their VA pension to pay caregivers.
Who Qualifies?
This benefit is available for any veteran who qualifies for VA pensions and meets one of the following criteria:
Housebound benefits also provide additional payment to the veteran for care expenses. Veterans are eligible if they receive a VA pension and spend most of their time at home due to permanent disability.
How much can you get?
The amount of increase to the veteran’s pension for A&A and housebound benefits depends on the veteran’s family and dependents. For 2021 :
You can view the VA pension tables for veteran’s with dependent and veterans married to other veterans here.
How to Enroll
Visit the VA’s website to apply for A&A or housebound benefits. Note that veterans can only be enrolled in one of these programs at a time.
A growing number of companies offer compensation benefits specifically for employees.
Who Qualifies?
Varies based on the employer.
How much can you get?
The paid time is typically brief (4 to 12-weeks on average), but they can provide the caregiver’s family time to decide on permanent arrangements. Of course this can vary based on the employer.
How to Enroll
To find out if your employer offers caregiver compensation, you can:
NOTE: Even if your employer does not offer the benefit currently, getting the request will make them aware of the demand, and they will be more likely to consider offering the benefit in the future.
Life insurance can be another potential source for caregiver compensation. Most long-term care insurance policies include home health and supportive services.
Who Qualifies?
How much can you get?
Varies Depending on plan, however:
How to Enroll
Check with your carrier for details.
If your loved one has the resources, they can pay a family member to provide caregiving. This can be a sensitive area for caregivers and families; often, caregivers feel guilt for suggesting that they should be paid to care for someone they love.
When having a conversation with your loved one:
Seeking caregiver compensation from siblings or other relatives is a viable solution for some families. Depending on family dynamics, broaching the subject may be a touchy situation. Non-caregiving relatives may feel guilt at the burden you’re shouldering, or they may not understand exactly how much is involved in caring for a loved one. Caregivers, meanwhile, may have resentment for other family members who aren’t participating in the day-to-day demands.
When discussing compensation with other relatives:
Being a caregiver can be a difficult and even grueling role. As a caregiving relative, recognizing that there are financial resources to help support you can be a weight off your shoulders. By exploring compensation options through government, private, and familial sources, you can make sure your loved one’s needs are met along with your own.
Trina Eaton is experienced in healthcare tech, having nearly a decade of experience working with physicians, pharma, and payers.
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