How Do You Get Paid for Caregiving?


Quick Answer

Caregivers are paid by the state, the family or an insurance company. This largely depends on the financial situation of the individual, his eligibility for in-state aid programs and the type of insurance coverage he holds.

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Full Answer

Depending on state laws and statutes, family members may qualify for payment by the state to provide care, particularly if the person is elderly or disabled and is classified as low-income and qualifies for Medicaid. Cash is also available from state programs other than Medicaid, which can be used to compensate personal caregivers. If the person needing care is a veteran, there are several home-based care programs funded by the state that hire and pay caregivers.

Another way to get paid for caregiving is by applying for tax breaks from the government. If a family member is able to prove that they are footing at least part of a loved one's bills, the state may provide a tax break, which in essence means more disposable income for the caregiver.

Finally, a person can be paid for offering personal care services to their kin by requesting a salary. To avoid pay dispute, a lawyer can be hired to draft a binding contract. Alternatively, if the loved one has a long-term insurance plan in place, family members can sometimes use part of the proceeds to pay themselves for the services rendered. Ultimately, the person needing care has to agree to compensate the caregiver.

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