If you want to know how to get paid to be a caregiver for parents, this article will answer a lot of questions you have and reveal very helpful details.
It will particularly reveal some of the best programs that really pay or reward those who take care of their parents as caregivers.
Getting Paid for Taking Care of Elderly Parents
Nothing can quite match the heart-wrenching experience of watching a parent’s life digress due to age or a life-altering illness.
On the other hand, nothing can be so special or engaging than caring for that individual during the latter stages of their life.
In 2015, it was estimated that 43,500,000 caregivers provided physical care to another human being. Of those caregivers, 34,200,000 those caregivers provided service to an adult.
Another staggering statistic is that 15,700,000 caregivers provide intensive care for an individual who has been diagnosed with the terrible disease of Alzheimer’s.
In total, it is estimated that one out of every 5 Americans are caregivers.
Behind this loving and special commitment to others is the staggering sacrifice that is placed on an individual.
Although adult children most willingly and lovingly fulfill this special opportunity, it is not without its own unique drain on an individual.
That drain is the toll that it takes upon the caregiver physically, emotionally, and mentally.
This is due to the fact that caregiving is a round-the-clock process with little or no time allowed for the caregiver a brief bit of respite.
Additionally, another added dimension is the drain that is placed on the family financially.
Roughly 7 years ago I realized that my wife was experiencing some diminishing mental capabilities
Later the diagnosis of Alzheimer’s was confirmed. This necessitated an early retirement on my part to care for the needs of my spouse.
As with many of us, a promise to love through sickness and in health was not a shallow vow, and, subsequently, to this day that marital vow is being honored.
When it comes to caring for a loved one, there are many casualties along the way with some of the casualties being personal financial matters.
10 Best Programs that Pay to Be a Caregiver for Parents
Medicaid is a state-sponsored medical program that allows for personal care coverage for qualified individuals. Generally, the qualifications are based on the individual’s income.
This medical assistance option is designated as an entitlement program.
Consequently, there are no waiting lines.
Additionally, Medicaid laws allow the individual receiving the benefit to select who they wish their care provider to be.
Those care providers can include family members such as adult children, nieces, nephews, grandchildren, etc.
These individuals that are selected are paid the Medicaid-approved hourly rate. Hours of caring are dependent upon the results of the assessment of the elderly individual’s needs and requirements for quality care services.
Generally, an individual would be eligible under the Medicaid program if their income was at 138% of the federal poverty guideline or less.
2. Veteran Assistance
If the individual is in need of “nursing home level care”, and is a veteran they may be eligible under the Veterans Assistance Program to select whom they wish as their care provider.
Those care providers can include members of the immediate family such as adult children within the family.
This service is generally offered to a veteran who is part of the V.A. healthcare system.
The selected caregiver may be compensated anywhere between a per hour rate of $8.44 on up to $20 an hour.
3. Home-Based Program
A home-based program or HCBS may offer eligibility to individuals who are in need of home healthcare.
These programs fall under the Medicaid system and are available to certain qualified individuals.
Those individuals that may be qualified are diagnosed with developmental or intellectual disabilities, mental illnesses, or other physical disabilities.
This particular program is designed to assist caregivers while caring for an elderly individual.
This financial relief is not a taxable wage but is defined as a stipend with no taxation burden assessed to the individual receiving this stipend.
A life insurance policy may be beneficial to support the financial situation of the family.
It is important to look at the policy and determine what sort of advantages or benefits are available as written in the policy.
As an example, some life insurance policies have a built-in long-term care clause already within the life insurance policy.
Another option is for the family to discuss whether a good strategy is to sell the current policy or perhaps surrender the life insurance policy for a cash payout.
It would seem that if the life insurance policy is able to be cashed out, this money could be set up in a separate bank account with any of the related expenses required for the care of the loved one drawn out against that account.
5. Family Support
If the parent or parents needing care have reared a large family, then perhaps the sibling that is caring for the parent or parents can be compensated by the other family members.
The benefit to all of the siblings would be the savings of such a cost if the parent(s) needed to find professional help outside the home and the expense of that care was encumbered by the family.
Having one family member lovingly volunteer to care for the parent(s), in turn, would save the other family members a considerable amount of money.
Perhaps, through discussion, compensation could be paid to that particular daughter or son for their care of the parent.
Even if a money-providing solution did not present itself, then perhaps each of the siblings could rotate through a scheduled caring plan for their parent(s).
This also would be a money-saving or in essence, money-paying situation.
6. Adult Foster Care
In some states, there is the option of an adult child of a needy parent becoming an adult foster care provider.
Professional care of their elderly parent, expenses such as the need for home care, or placing the parent in an adult daycare situation, maybe deductible when that foster care provider (adult child) files their income taxes.
As with all tax deductions, it is important to consult with one’s accountant. In accessing this potential option, the adult parent moves in with the child.
The adult child then provides the needed assistant required by the aging mother or father.
As part of the program, if available in one’s state, the adult child would be responsible for all of the care and associated needs of their parent.
If the ailing adult parent is part of the Medicaid system, Medicaid will continue to support the parent with the needed medical care, doctor’s visits, prescriptions, etc.
Alternatively, the providing child for their aging parent will be compensated by Medicare for the services that they provide.
However, room and board are excluded from this provision by the state.
Depending again upon which state the individual lives in, compensation could range anywhere from $1550-$2550 per month.
7. Paid Family Leave
If an adult child is employed and needs to leave their employment to care for an ailing parent, it is important to check with the employer to see if any payment options are available.
Specifically, some companies, as a benefit to their employees, offer an employee benefit that pays the employee for their time away from the position with the company.
This benefit is defined as an older care program. Some of these companies will pay up to 2 to 4 months of paid leave for employees who find themselves in this situation.
Unfortunately, not many companies offer this benefit, but it is important for the individual or employee of the company to see if such a benefit exists.
8. Tax Exemptions
Although tax reductions and potential credits in the care of an adult parent by an adult child are not a direct payment, there are possibilities of these deductions being claimed on one’s personal tax filing.
Specifically, it may be possible for the tax-filer to claim the adult parent as a dependent and claim them as an exemption for IRS purposes.
This deduction would be related to medical and care expenses that are needed by the aging parents.
Another potential option as it relates to taxes is a dependent care credit.
This credit may be claimed by an individual who must hire someone to care for their ailing, in this case, parent, while they are working.
It is critical to consult with one’s tax advisor to ensure that the proper deductions and credits are being fully taken advantage of.
9. Long Term Insurance
It is also important to determine whether the father or mother in the family situation had the foresight of taking out long-term care insurance.
Some of these long-term care insurance policies actually have a provision written into the policy that payment to a relative is acceptable and that the insurance policy pays the cost for the care.
10. Community First Choice
Similar to the HBCS option is Community First Choice. This is a program that allows seniors to manage their own home care.
Involved in the process is the opportunity to utilize family and friends to take on these significant roles and responsibilities as a paid individual.
This Community First Choice program falls under the umbrella of the Affordable Care Act.
As of this writing, there are currently 9 states that offer this added program.
Those states include:
- New York
Again there are significant guidelines as to eligibility being due to this being part of the Medicaid system.
If a variety of options are available it is best to do one’s research or possibly talk with an attorney to see which program would be the most beneficial and suitable for the care of the adult parent.
You Can Do It
It is certainly a regrettable and awful position to be in when an aging parent needs assistance due to the aging process or diagnosis of an illness that requires constant care.
It is especially difficult when the members of the family that want to care for their parents need themselves to continue being employed and meeting their own personal and family financial obligations.
Fortunately, depending upon the financial qualifications of the adult parent, there are programs that are available to help either family members or outside caregivers to provide the needed managed care.
Consequently, it is best to do one’s own research to find out what possible programs might be available to financially care for all individuals involved in this unfortunate reality of life.
How to Get Paid to Be a Caregiver for Parents FAQs
Are There Any Programs or Companies That Provide Pay to Take Care of a Home-bound Wife?
Unfortunately, there are no programs or companies that provide payment to a spouse to take care of a spouse who is home-bound or disabled.
Are Other Relatives Eligible for Pay to Take Care of Family Members?
Yes, there are programs and companies that will pay for other members of the family or friends to take care of an elderly individual.
Additionally, there are other resources that might be available for the individualized attention associated with the daily routine and responsibilities of caring for that elderly individual.
As one’s parents increase in age so do the possibilities of age-related illnesses.
Some of these illnesses necessitate the need for more intensive care if the family chooses to keep their parents within their home.
Although, an adult child of a parent in need would never term their care of their parents as a burden, nevertheless, there are many associated stresses and burdens that are created.
Some of those burdens include stress placed on the child-provider and the entire family, mental and physical fatigue, and financial burdens.
Often, a member of the family is forced to leave their employment position to care for their aging parent due to the exorbitant cost of providing personal care in a professional residential facility.
Fortunately, there are financial options for an individual facing this circumstance.
Therefore, it is important to do one’s research and find out what options might be available to help support the family and individual during this time of medical need.