A benefit established through the Deficit Reduction Act of 2005 can allow family caregivers to get paid for the services they are providing their loved ones, explains today’s article from Home Care Agency News.  The Act allocated $1.4 billion to the “Money follows the Person” program.  The program allows state programs to allocate the funds directly to Medicaid recipients, rather than nursing homes, and then spend the money hiring the caregiver of their choice, which could include a family member.

According to a study published in 2004 by the National Alliance for Caregiving, 21 percent of the U.S. adult population provides unpaid care to seniors or adults with disabilities, providing an average of 21 hours of care per week – close to the equivalent of a part time, three-shift-per-week job. The “Money follows the Person” program aims to make more room in eldercare facilities by keeping them in their homes for longer with this program.

In addition, Veterans who served during a period of war can recieve the Attendance Pension Benefit, which about 33% of all seniors could qualify for, as long as there is a caregiver contract in place.

To qualify for Medicaid nursing care, cash assets must be spent down to less than $2,000.  Many use their cash assets to pay for nursing home care until Medicaid becomes applicable, however, the funds can instead be used to pay a child in return for caregiver services and will still avoid being considered a gift for tax purposes.  The Home Care Agency News article advises meeting with an expert in Medicaid benefits to determine the best way to manage the funds you have left in conjunction with planning for when Medicaid will step in.

Readers: What are your experiences with using alternative programs to cover the costs of paying for a caregiver?  Were you able to obtain funds to pay a family member for their assistance?  Tell us in the comments!