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Caring for elderly parents can be an incredibly fulfilling yet challenging experience, but the cost of providing for their health, well-being, and other daily needs can lead to financial stress. Because of this, paying for yourself to take care of your elderly parents would be a great idea, right?
You can pay yourself for taking care of your elderly parents. State-administered programs, such as Medicaid’s waiver program, can pay you for providing in-home care. Your parents’ insurance coverage might also compensate you. Some employers may also offer paid caregiver leave.
Meeting the criteria to qualify for state-administered programs or getting your insurance to cover your expenses as a caregiver can be complicated. In the sections below, I’ll dive into everything you need to know about being compensated as a caregiver for your loved ones, so keep reading to learn more.
Parental Care-Giving and Compensation: What You Need To Know
Being a caregiver can take a toll on your finances, whether you’re doing it full-time or part-time. Juggling work and looking after your loved ones can be daunting, as you’re stuck in a cycle of needing to earn more to afford the added expenses but not having the time to do so.
The worst part is that, while struggling to find this delicate balance, you’re burnt out and unable to cater to your loved ones as well as you’d want to.
The good news is that being compensated for parental caregiving is possible in many states, but applying for such compensation can be a challenge, and you may not qualify as easily as you might hope.
There might also be limits on how much money you can receive and what conditions are covered under your state’s program.
You might be compensated through these approaches, but much of your physical and mental work will still go unpaid. Therefore, don’t expect qualifying for one of these programs to replace an actual full-time job in terms of earnings, even though the effort you put in might be the same, if not greater.
The criteria to qualify for the following programs can vary. However, generally speaking, here are some qualifications you need to meet before receiving compensation for your services as a caregiver for your family members:
- You need to be an adult of sound physical and mental condition.
- The costs you’ll be compensated for while caring for your elderly parents at home shouldn’t exceed what you’d spend if your loved ones were to be living in an assisted care facility.
- You need to demonstrate that you can provide a level of care comparable to what your parents would receive in an assisted living facility.
- You must abide by an individualized care plan that a physician ideally approves.
How To Become a Paid Caregiver for Elderly Parents
There are several ways to become a paid caregiver for your parents. Depending on your location, there might be other options available to you, so I highly urge you to check your state’s local laws and regulations.
However, if you’re a caregiver living in the US, the following alternatives offer you the best chance of receiving compensation for your role as a caregiver.
Enroll in Medicaid’s Waiver Program
Before considering this route, you must have an elderly parent enrolled in Medicaid to benefit from their waiver program, which is a great way to receive financial assistance while caring for an elderly parent.
The program is designed to help elders, children, pregnant people, and people with disabilities receive assistance in their own homes. While the plan was initially created to help people requiring care afford the help of professionals, in-home services administered by relatives are also included in their compensation scheme.
Medicaid is organized by each state individually, so you might want to research what the plan entails and what the requirements are in your location. You may qualify based on income and resources, as well as the age or functional ability of your parents set forth by each state.
In some cases, you may receive additional funding if you are taking care of more than one parent at once or providing more intensive levels of care.
The Program Allows the Recipient To Choose Their Aide
Generally, the waiver program allows the recipient, which in this case, is your elderly parent, to choose their own aide. In most states, this aide can be a family member, who will then be compensated by Medicaid as a professional caregiver would.
Consider Your Compensation Rate
Regarding the compensation rate, you’ll usually be paid the minimum hourly wage in your state. If you compare your compensation to that of a fully-qualified nurse, your hourly compensation wouldn’t be as close.
On the other hand, if you compare your hourly wage to that of the average senior care worker, it’d be pretty much the same. According to Zip Recruiter, senior care professionals make roughly $13 per hour, which is close to the minimum hourly wage in many states.
The Medicaid waiver program, just like its compensation scheme, can vary from one state to another. In some locations, spouses are excluded from consideration, while in others, all family members that reside in the same home are excluded.
So, I urge you to do some state-specific research before applying.
Be Prepared To Join a Waitlist For Approval
Remember that the application process can be time and energy-consuming, as there’s a long list of applicants who, just like you, are trying to get compensated for their caregiving efforts. You’ll need to wait for a while before receiving a response from Medicaid. Even then, a positive outcome isn’t guaranteed.
Medicaid Funding Is Limited
Medicaid funding is often limited, so only a specific number of applicants can benefit from the program. Besides meeting all the criteria, you must file your application at the right time, which is usually a matter of blind luck, so you’ll want to arrange compensation alternatives in the meantime.
Look Into Your Parents’ Insurance Coverage
If you’ve lived in the US long enough, you probably already know how much of a difference a good insurance plan can make. The same applies to getting paid as a caregiver for your elderly parents.
Sometimes, your loved one’s private coverage might help them pay for at-home assistance, even when the necessary help comes from a family member. Before looking into more obscure options, consider your parents’ insurance coverage.
Their insurance company might be required to pay a portion or all of your expenses as a caregiver.
Most insurers only cover the expenses of enlisting the services of a licensed professional. However, that’s not always the case, so it’s worth consulting with your parents’ insurer to discuss your options. Alternatively, you can look for an attorney specializing in the field to help you understand your parent’s insurance policy.
Join a Veterans Directed Care Program
As you might’ve guessed, this option is only viable if the elderly parent is a veteran. However, considering that, as of 2021, 16.5 million veterans are residing in the US, with over 4 million aged 75 or older, this program is worth mentioning.
The Veteran’s Administration (VA) designed this program to help all veterans who require nursing care but prefer to receive it in their homes. Unlike the other options, which tend to reimburse you directly for your services, the Veterans Directed Care Program offers a stipend to its recipient, who can spend it however they wish.
Therefore, your elderly parent might be able to use this financial aid to compensate you for your services as a caregiver. Even though this program might not be available to all elders, the recipient can allocate their funds to their liking, which is a great benefit.
While Medicaid or your parents’ insurer might only compensate the services of a licensed caregiver, the Veterans Directed Care Program enforces no such restrictions. That said, the program still applies some exclusions.
For example, financial aid is only viable if awarded to adult children of veterans, while spouses aren’t able to benefit from the program. The seniors in care of assistance need to prove through documentation that they deserve to be a part of the program.
Documentation required includes, but is not limited to, the following:
- Income statements
- A full physical health report
However, as a family member, you’ll still have to provide a fair amount of documentation to prove your abilities as a caregiver. And as with Medicaid, availability and regulations vary in each state, so don’t hesitate to contact your local VA office for more information.
Consider Alternative Options
If none of the above options are available to you, here are lesser-known alternatives to consider.
Paid Caregiver Leave
Check with your employer whether they offer paid caregiver leave. Some companies have started offering this type of leave to employees who have to look after their elderly parents for a short term.
Keep in mind that “short-term” is the operative word here.
If you’re caring for your elderly parents full-time indefinitely, a paid caregiver leave may not apply to you. On the other hand, if you’re only going to take care of your elderly parents for a few months until you find a permanent solution, this is an excellent option.
Paid caregiver leave works similarly to parental leave. Your employer pays you a pre-determined daily wage while you take some time off looking after your loved ones.
Even though this is a fairly new concept that not all companies have warmed up to, many employers have adapted to attract and retain experienced employees. So, it’s worth consulting with your organization to see whether they offer this kind of benefit, especially if you’ve served them for many years and have established a good working relationship.
Financial Contribution From Family Members
If all else fails, you can always try to reach an agreement with your other family members.
Are you one of several siblings responsible for the well-being of their parents? If so, you can draw a legal contract that allows you to take on a caregiver role in exchange for financial compensation from the rest of your family.
However, this option is a last resort. Financial agreements with family members can quickly get complicated, so only consider this alternative if you have a solid relationship with all parties involved.
Consider the following tips:
- Have the contract looked over by several attorneys. Ideally, each person involved will discuss the agreement with their legal representative before signing it.
- Make the contract as specific as possible. Ensure every detail is as clear as possible to avoid any potential conflicts. Before signing, all parties should be aware of the exact terms and conditions of the agreement.
While it’s not an option for everyone, getting to an agreement with your family where everyone takes part in the caregiving process of the senior members can also provide peace of mind to all parties involved.
Is It Ethical To Receive Payment for Providing Care?
Assisting your elderly parents can often blur the line between moral responsibilities and your right to receive compensation for hard work. However, considering the time, effort, and resources you’re obligated to spend as a caregiver, receiving compensation is completely fair.
Financial aid can help lighten your mental and physical load while giving you more time to cater to your parents’ needs.
So, if we take into consideration the utilitarian definition of “ethical,” according to which the right choice is the one that produces the most positive outcome, paying yourself for taking care of elderly parents is perfectly ethical.
Therefore, don’t hesitate to benefit from any compensation program or approach you might be eligible for.
Conclusion
Taking care of elderly parents presents not only emotional challenges but financial ones as well.
You can receive compensation for caregiving by applying for Medicaid’s waiver program or joining a Veterans Directed Care Program. If you don’t qualify for these programs, your parent’s insurance company and your employer may offer compensation while you care for your elderly parents.
As a last resort, you can seek compensation from family members.
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