Maximize Your Caregiver Payment

Millions of people in the U.S. provide home care services for an older adult or disabled family member. Most of these family caregivers are unpaid. While caregiving can be rewarding, it can also be challenging and stressful. 

Finances are a major source of stress for many unpaid family caregivers. Even if you have a source of payment for providing home care, it might not be enough. 

In this blog, we’ll discuss the financial challenges of caregiving and describe ways to maximize payments by using multiple sources of financial caregiver support. 

For more information about caregiving, check if you have free access to Trualta’s resource library and community of caregivers. 

The Costs Of Family Caregiving

Reports state that approximately 45 million Americans provide unpaid care for a loved one. These family caregivers often face financial issues because they spend so many hours providing unpaid labor. The time required to provide care prevents many individuals from working full time or working at all. 

Family caregivers also often spend money out of pocket on care needs. These costs include assistive devices, medications, travel expenses, therapy, and more. 

Financial burdens are just one part of the overall stress that many caregivers face. They often struggle to find time for their own needs. They’re at risk for mental health issues, like anxiety and depression, or even burnout. They tend to become socially isolated due to the time spent on care. Caregivers must prioritize their own health, both mental and physical, to stay well and be able to provide good care.

One way to relieve some of the stress of caregiving is to get financial assistance. If you can get paid to provide care, you’ll have one less thing to worry about. There are several ways to go from being unpaid to being a paid caregiver. One single source is not likely to provide all the help you need, but use as many resources as possible to maximize your caregiver compensation. 

7 Ways To Maximize Your Caregiver Payment

1. Become A Medicaid Paid Caregiver

If your loved one qualifies for Medicaid services, you may be able to become their paid caregiver. Medicaid is a health care entitlement program administered at the state level. Each state sets its own benefits and eligibility requirements, but all are based on the federal minimum standards.

Individuals over 65 and with disabilities can qualify for Medicaid if they meet the income requirements, which vary by state. If your loved one meets the requirements, they can get certain benefits for long term care, like personal care services. These include comprehensive assistance with activities of daily living, such as bathing, dressing, and preparing meals. 

State Medicaid programs also offer Home and Community-Based Services (HCBS) waivers. Medicaid traditionally pays for long term care in facilities, like nursing homes. States introduced HCBS waivers to allow individuals to receive long term services in their homes. Waivers vary by state but often include personal care services and respite care. 

Family caregivers fit into this picture thanks to Medicaid’s self directed care model. Also known as consumer directed care, this model gives care recipients agency. It allows them to make more choices about their care, including who to appoint as a paid caregiver. 

If you provide care for your loved one, but they qualify for Medicaid, you can most likely get paid. Self-directed care and these benefits programs allow your loved one to receive paid home care from a person they trust and choose. 

Contact your state’s Medicaid program to find out if your loved one is eligible. You can then enroll them and complete the paperwork for self directed care. 

Another Medicaid option available in some states is called Structured Family Caregiving. This benefit is available to individuals eligible for Medicaid and their family members in seven states: Connecticut, Georgia, Indiana, Louisiana, Missouri, North Carolina, and South Dakota. 

2. Use VA Benefits

The U.S. Department of Veterans Affairs (VA) offers several benefits to veterans. These include pensions and medical care in VA medical centers and other facilities. Veterans Affairs also has a few options for family members to be paid to care for their loved ones. 

If the person you care for is a veteran and enrolled in VA health care, they could get these benefits: 

• Veteran Directed Care. The veteran directed care program is similar to the Medicaid self directed care program. It allows qualifying veterans to pay a care provider of their choice to provide home care. 
• Program of Comprehensive Assistance for Family Caregivers. This caregiver support program, along with veteran directed care, allows veterans to choose one primary and up to two secondary family caregivers. If you’re named the primary caregiver, you receive a monthly stipend and healthcare benefits. Both primary and secondary family caregivers benefit from training and education, mental health care, and travel expenses when the care recipient needs medical treatments. 
• Aid and Attendance Pension Benefit. This benefit is a monthly addition to a VA pension. It’s for veterans with Alzheimer’s disease or any veteran who needs assistance with activities of daily living. The veteran can use this benefit to pay a family caregiver. This excludes spouses.  
• Housebound Pension Benefit. The housebound Veterans Affairs benefit is another pension addition. It’s for veterans who are unable to leave their homes. They can use the benefit to pay a family caregiver, but not a spouse. 
• Respite Care. The VA respite care benefit does not provide family caregivers with a payment. However, it does help you save on what respite care would cost you out of pocket. Paid respite care through the VA includes home care and adult day care options. This gives family caregivers the chance to take time off. 

If your loved one is a veteran but you’re not yet receiving these benefits, contact your local VA office. They can help you determine eligibility and explain how to apply for and use benefits. 

3. Check Your Long Term Care Insurance 

VA and government programs are not the only ways to get payments for being a family caregiver. Private insurance policies can also be a source of payment. If the person you care for has private insurance, check the policy or call their agent for information. 

Your loved one’s plan may include coverage for long term services. Some policies only cover care received in a nursing home or other facility. Some include coverage for in-home and personal care services. These policies cover the cost of a caregiver, often including informal caregivers, like family members, who would otherwise not be paid. 

If your loved one’s policy does include long term care in the home, there may be other options. Some policies allow cash payments. The insurer sends a monthly benefit directly to the policyholder. They can then use it to pay a family caregiver. Other policies use a reimbursement style of payment. To be paid, you’ll need to submit invoices and documentation. 

4. Take Paid Family Leave

The federal Family and Medical Leave Act (FMLA) allows qualifying employees to take time off to care for a loved one for a specified period. This leave is unpaid, but it does protect you from losing your job and benefits. 

A handful of states do have paid family leave laws or programs. For instance, California allows up to eight weeks per 12 months of paid leave for qualifying individuals. The qualifications are similar to those associated with FMLA. You also must have paid into the state’s disability insurance program in the last five months. 

Washington, D.C. has paid family leave, as do these states: 

• California
• Colorado
• Connecticut
• Massachusetts
• New Hampshire
• New Jersey
• New York
• Oregon
• Rhode Island
• Vermont
• Washington

If you care for a loved one and work in one of these states, you could be eligible to take a break from work and still get paid. Delaware, Maine, Maryland, and Minnesota have enacted paid family leave laws, but have not yet implemented them. 

5. Look For State Programs That Support Family Caregivers

Many states offer programs that support or provide payments for family caregivers. The Family Caregiver Alliance has a useful online tool to help you find resources available in each state. Local resources that can help you access support and funding include your nearby Area Agency on Aging and Aging and Disability Resource Centers. 

One example of a state program that can help family caregivers is California’s In-Home Supportive Services (IHSS) provider program. It’s available to qualified California residents who need care in their homes.  The state can pay a family member who completes the process of becoming an IHSS provider to provide the care. The program helps disabled and older residents stay in their homes longer. You can also use the California Caregiver Resource Center to find additional resources. 

6. Use A Personal Care Agreement

If your loved one can afford to pay you for your care services, you can receive payments directly from them. You can do this informally, but making it a formal arrangement with a personal care agreement is better. 

A personal care agreement is a legally binding document that names a caregiver and their payment. It should detail the amount you will be paid and how you will be paid. It should also outline your duties and responsibilities. A legal document might seem unnecessary with family, but it can alleviate much of the stress involved with this type of arangement.

One of the benefits of a care agreement is that it can help your family later if your loved one becomes eligible for Medicaid. Medicaid’s income limits include asset limits. Individuals often need to pay down their assets before they qualify. Paying a loved one for care is one way to do this, and a personal care agreement provides proof when it’s time to apply for Medicaid. 

7. Take Advantage Of Available Tax Credits

Tax credits won’t pay you to be a caregiver. But they reduce some of the financial burden, helping you stretch any payments you receive. For example, you might qualify for the dependent tax credit if your loved one is considered a dependent. 

Another option is the child and dependent care credit. It can be used for a care recipient living with you who cannot care for themselves. The credit is for any care you need to pay for while you’re working. If you provide care but also need to work, consider using this tax credit. 

The head of household credit is available to some individuals and can help reduce the burden of care. It typically applies to someone who pays for more than half of the household’s expenses.

Family caregivers play a vital role in health care. The millions of unpaid caregivers provide billions of dollars in care. They help their loved ones stay in their homes longer, delaying transitions to assisted living and nursing homes. They should be paid for their work, but this isn’t always the reality. Get to know the resources available and find ways to receive payment for the essential work you do. 

Don’t forget to check if you have free access to Trualta for more information. 

References

1. Columbia University Mailman School of Public Health. (2024, October). America’s Unseen Workforce. Otsuka America Pharmaceutical, Inc.
2. Centers for Medicare & Medicaid Services. (n.d.). Self-directed services. Medicaid.gov.
3. U.S. Department of Veterans Affairs. (2025, June 23). VA benefits for family and caregivers.
4. National Conference of State Legislatures. (2024, August 21). State family and medical leave laws.
5. Family Caregiver Alliance. (n.d.). Services by state.
6. California Department of Social Services. (n.d.). IHSS provider orientation.