Many diseases including Stroke, TBI, Parkinson’s, Cancer and Alzheimer’s, to name a few,
require that a caregiver be a critical component of both the recovery, and as part of the care
team. Most of the care team such as physicians, nurses, therapists and social workers are
compensated for their time and efforts. However, caregivers are often unpaid volunteers. With
some diseases such as stroke recovery much of the caregiving is focused on recovery, and if
possible, creating an independent new post stroke life. With other diseases such as Alzheimer’s
the caregiving is more focused on slowing the progression of the disease. Both are challenging,
particularly since we are not trained to be healthcare caregivers.
The time and energy required to be a caregiver for a cherished loved one can be overwhelming.
In some cases, the individual family caregivers are forced to choose between caring for their
loved ones and their career. While caregiving is undoubtedly a rewarding endeavor, it doesn’t
come with a paycheck. In 2011, the United States Government estimated the value of this type
of care to be worth $234 billion. That is a huge number! And it certainly has only grown with
the aging demographic of America.
Most people would agree that family caregivers, who are providing a unique level of care to
loved ones in need, should have some means to get paid for the invaluable services they
provide. It is certainly not a simple process to get paid for these services, but in this article, we
will lay out a few methods to help compensate caregivers for their considerable time and work.
State Benefits:
Depending on medical eligibility, your current level of income, and your state of residence,
there may be programs available from the state to pay you for your caregiving. The programs in
question often have a variety of names from state to state, but in general, the programs will
have names like cash and counseling, participant-directed, or consumer-directed. With this type
of benefit, a person can hire a caregiver that they choose, including, if that choice is a loved
one.
In some states, you may be required to become certified as a caregiver while in other states
they may require you to meet with registered nurses or social workers to review and supervise
your care plan. In either case, the person that is to receive care must qualify for Long Term
Care benefits from Medicaid. You can click here to check on the Medicaid eligibility
requirements for your state.
Spending Down Assets:
If by chance your loved one has saved up some amount of money, but that amount does not
cover the cost of extended care, then applying for Medicaid and spending down money may be
a great solution. Under the rules of Medicaid, applicants are not permitted to give their assets
away, but Medicaid does allow people to spend down their assets if that money is going
towards their care.
As a family caregiver, you can receive that money so long as your rate of pay is at the same
market rate as a third-party caregiver. If you feel this option meshes with your particular
situation, it is vital that you create and execute a written contract, create formal invoices, pay
all taxes necessary on the income you receive, and remain at the market-level rate of pay for
caregivers. This method of spending down assets is an exceptional way to keep valuable assets
in your family without running afoul of any Medicaid rules and regulations.
Long-term Care Insurance:
Long-term care insurance policies often have something that is called in-home coverage. This
part of a policy can be used to pay a caregiver of their choosing, even if that caregiver is a
family member. As we just discussed with spending down assets, it is vital when you receive
this type of income that you create and execute a written contract, create formal invoices, pay
all taxes necessary on the income you receive, and remain at the market-level rate of pay for
caregivers. If you’re unsure about whether their policy has this benefit, it is best to call the
company in question and speak to an agent about the specifics of the policy.
If after reviewing all these options none of them applies to your situation, you could always
negotiate a contract with the loved one you plan to give care to and then have them pay you as
if they were paying a professional caregiver. While this is not an ideal situation, it can help to
remedy some of the financial burden placed on the caregiver. In addition, there are programs in
place designed to help caregivers such as respite care, adult day care as well as in-home
support. To learn more about what benefits are available to you, visit the benefit check up for
the National Council on Aging.
Being a caregiver for a stroke survivor, or a survivor of another disease can be very fulfilling.
However, there are financial consequences to be considered. If you need assistance with these
issues, please contact us here.
