Can You Get Paid To Care For Your Loved One?
Are you caring for an elderly family member or friend and not getting paid? You may be thinking that it is in the best interest of your loved one to preserve their assets rather than for you to get paid for the care you are providing. And in some cases, that is correct. In other situations, however, having a loved one pay you for their care can actually benefit you and your loved one.
Keep in mind that if things reach a point where nursing home placement is the only option, for a single person, all of their money will be considered available to pay for the cost of their nursing care. They will not be eligible for Medicaid assistance until all of their assets have been spent down to $2,000 in Kansas or $5,000 in Missouri.
How can you get paid as a caregiver in Kansas or Missouri? With a proper care contract in place, an individual can pay their care giver and every penny spent will count towards their “Medicaid spend down” once they apply for benefits.
It is extremely important to have a care contract which complies with the State’s Medicaid laws. Otherwise the payments made to an individual without a care contract will be considered a “gift” or a “transfer of assets” for Medicaid eligibility purposes and the State will impose penalties which can result in ineligibility.
Both Kansas and Missouri have specific requirements for personal care contracts. Generally speaking, both states require a written agreement, signed and dated on or before the date the services are to begin, specifying the services that are to be provided and the rates that are to be paid (which must be fair market value).
Over time, a substantial amount of assets can be protected if the care contract is structured properly. In some cases, the care contract may even make the one who needs care eligible for a veteran’s benefit, even under the new V.A. rules which were recently passed.
For more information:
Why You Shouldn't Walk Into the Medicaid Office Alone
Do You Have a Loved One Who Needs Long Term Care
Consumer's Guide to Medicaid Planning and Division of Assets