Can I Get Financial Support as a Caregiver?

Being a caregiver often means putting someone else’s needs before your own. Many caregivers take time away from work, reduce their hours, or leave their jobs to provide care for a loved one. Most caregivers are not paid for the support they provide, but there are some programs that may offer financial support. Depending on your loved one’s situation, they may qualify for programs through Medicaid, Veterans Affairs (VA), or some state-based services.

How do I qualify for caregiver payments?

To qualify for financial support as a caregiver, you and the person you care for may need to meet certain requirements. Depending on the program or organization you apply to, you may need:

• A medical or care needs assessment showing the person needs hands-on help with daily activities
• A financial assessment showing limited income and assets

There are often additional requirements. Make sure to check the requirements for each program you consider.

Medicaid programs for caregiver payments

Several Medicaid programs are available to provide payments to caregivers. To be eligible, the person who needs care must be enrolled in Medicaid.

Programs have different names in different states. These examples can help you know what to ask about.

Contact your state Medicaid office

Programs and rules vary a lot by state, so the best way to find out what’s available is to ask. Find your state’s office using the Medicaid by State directory from the American Council on Aging.

When you call, ask:

• Which programs do you offer that pay caregivers?
• Can a family member or friend be paid to provide care?
• What are the eligibility requirements, and how do we apply?

For waiver programs, you might also ask if there’s a waitlist and what help is available while you wait.

Protecting your family home through Medicaid

The Caregiver Child Exception (also called the Caretaker Child Exception) is a Medicaid rule that may help protect a family home when an adult child has been providing care for a parent who enters a nursing home or is getting nursing home-level care at home. Unlike some Medicaid programs, it does not provide direct payment to the caregiver. Instead, it may allow a parent to transfer their home to the adult child without a Medicaid penalty. Usually, the adult child must have lived with and cared for the parent for a certain length of time before the parent needed nursing home-level care. Eligibility requirements vary by state. To qualify, you may need documents showing:

• Proof of the parent-child relationship, such as a birth certificate
• Proof that the adult child lived with and cared for the parent for the required amount of time, such as a driver’s license
• Proof that the parent requires nursing home-level care, such as a doctor’s statement
• Proof that you meet any state-specific requirements

If you are considering this option, check the rules in your state and get help from a professional Medicaid planner to make sure everything is done correctly.

Veterans benefits and caregiver programs

Veterans Affairs (VA) offers programs and benefits that can help pay caregivers of veterans who qualify. They work in different ways:

• Veterans Directed Care gives veterans enrolled in VA healthcare a budget to hire their own caregiver.
• Aid and Attendance and Housebound benefits add to a veteran's monthly VA pension. The veteran can use the money to pay a caregiver.
• The Program of Comprehensive Assistance for Family Caregivers (PCAFC) pays a monthly stipend directly to the primary family caregiver of some veterans with service-connected disabilities.

State-based caregiver programs

Many states offer resources to help caregivers find information and support, including connections to nonprofit or disease-specific organizations. Depending on where you live and your situation, you may qualify for programs that provide payment for a family member or other caregiver who is currently unpaid.

The Family Caregiver Alliance provides a Services by State tool to help you find programs and resources in your area.

Long-term care insurance

If your loved one has long-term care insurance, their policy may help pay for care provided at home, in a nursing home, or in an assisted living facility. Benefits often help cover assistance with daily activities, such as bathing, eating, and dressing.

Some policies have specific requirements about who can provide care and whether they must be licensed, certified, or connected with an approved agency. Many policies don’t pay family members who provide care, but some do.

Long-term care policies may also have limits on how much they will pay, how long benefits will last, and when coverage begins. Review your policy carefully or contact your insurance agent to learn what services and types of caregivers are covered.