The caregiver can make a significant sacrifice: they give up a job and offer benefits. A formal agreement between family members can provide a means of compensating a person who provides care if he or she is no longer able to pursue another profession. Even though most family members want to help and feel compelled to take care of a loved one, it is a job with a lot of commitments and responsibilities. One way to protect both the caregiver and the caregiver is to record the relationship with the caregiver in writing. It is very important that the wage rate set is appropriate. In other words, the wage rate cannot be higher than the usual rate for this type of care in the area where you live. Although payments can be made periodically, e.B. weekly or bi-weekly, in some cases a large lump sum payment can be made. To be clear, a caregiver cannot be paid retroactively. This means that no payment can be made for the services provided before the conclusion of the contract. Instead, payments must be paid as they go, or in states where lump sum payments are allowed, the lump sum for future care services is “prepaid”, essentially for the rest of the care recipient`s life. (Not all states allow lump sum payments and may consider this type of payment a gift, which violates Medicaid`s retrospective rule.) Amendment/Termination Clause A clause that allows the personal care agreement to be amended if both parties agree to the amendments should be included. If the agreement is long-term, it is strongly recommended to review it annually and amend it if necessary.
A clause allowing the termination of the agreement is also recommended. The Consumer Directed Personal Assistance Program (CDPAP) is a Medicaid program created to provide services to the elderly, chronically ill or physically disabled, as well as people who need help with daily activities (ADLs). The CDPAP is also designed to provide qualified care. Service provision may include a home health assistant, a personal care assistant or a nurse. Personal care arrangementspersonal care arrangements are private agreements between an older person and another person, usually a relative or close family friend. Most often, they are intended to last the entire life of the elderly person, but this is not always the case. Often, creating a lifelong care agreement is part of a claims planning strategy for Medicaid, but even that isn`t always the case. These agreements may also be referred to as care agreements, family care contracts, seniors` care contracts, long-term care personal support service contracts, or personal service agreements. Once the contract amount has been “claimed” by the caregiver, it cannot be reimbursed or returned (or Medicaid would count it as an available resource for the applicant).
It is not necessary to enter into a personal service contract only when an elderly person is immediately ill and faces huge long-term care costs (although we, the advocates of older legislation, often have to work on this basis). Signing a personal service contract as part of pre-planning (instead of crisis planning) allows the pre-planner to achieve this higher life expectancy rate. This allows more assets to be transferred from the Medicaid applicant`s name when it comes time to qualify and apply for Medicaid). For example, #1Mary is 75 years old and needs help at home. Her daughter, Anna, has agreed to take care of her and Mary pays Anna $500/month in exchange. Although payment is made for the services rendered, no custody contract has been established. Therefore, Medicaid adds up all payments to Anna in the last 5 years, considers them a gift, and a penalty period is put into effect. If a living care agreement had been entered into, there would likely have been no violation of medicaid`s review period. Learn more about the Medicaid Look Back period here. ● Costs for various types of care for seniors, including assisted living, long-term care and personal care at home. By using a life-long care arrangement, an older parent can reduce their income or assets, receive care from a family member, and help themselves qualify for Medicaid-funded nursing home care.
At the same time, they can still keep their financial resources within the limits of their family. To understand how it works, some general information about Medicaid is needed. One thing to consider is the fact that family members who give up their jobs or careers to care for an aging loved one are often paid privately. This income is not reported to the IRS. Family members who pay the caregiver also do not file with the IRS to show that these payments were made. This is not the recommended way to do things, although it is not technically illegal as it can lead to further problems with Medicaid later on. Discussing the loved one`s care plan can cause harsh feelings among family members, as the care plan often highlights problems within the family that existed before the loved one was taken into care. Some family members may feel overworked or carry a heavier load than others.
Other family members may be bothered by the cost of care due to a long-standing conflict with the aging loved one. Each family member will have their own vision of how the loved one should be cared for, which can lead to disagreements within the family. A properly drafted personal care contract will include the following: The Florida Supreme Court has concluded that Florida`s Nursing Home Act only requires nursing homes to provide just over two hours of actual care per resident per day — meaning nursing home residents can spend most of the day without personal care. Enter the personal service contract. Essentially, a personal service contract is a contract between the Medicaid claimant and a specific caregiver for services not provided by the nursing home or qualified assisted living facility (for example. B attend nursing home scheduling sessions, deal with lawyers, attend appointments with doctors, be a lawyer, drive seniors to appointments or even entertainment events, and more…). The caregiver is usually a family member, like an adult child, but it can really be anyone (someone with or without formal care or experience). A care contract is an agreement that ensures that caregivers are protected and that family members involved in elderly care fully understand all the caregiver`s expectations and responsibilities. A care contract can also be called a personal care agreement. This type of contract has become more common as the role of the caregiver has evolved in recent years, both socially and legally. Even if we expect our children to help us for free and out of love; The fact is that being a caregiver can be time-consuming and challenging – almost a part-time job. According to a report by the AARP Public Policy Institute and the National Alliance for Caregiving (NAC), last year, more than 34 million Americans served as informal (unpaid) caregivers for a person aged 50 and older.
Often, it is adult children who care for their aging parents, whether it is minimal support in activities of daily living due to the natural aging process or more comprehensive care resulting from the progression of Alzheimer`s disease or dementia associated with it. As the need for care continues to grow, it is not uncommon for informal family caregivers to give up their jobs to provide the required level of care. Family care contracts offer a win-win situation; The caregiver may be compensated for the care he or she provides and the elderly person receives the care he or she needs. “We don`t want to see our families as a burden, but care can cause burnout,” says Angela Manz, a senior citizens` lawyer at the Manz law firm in Virginia Beach, Virginia. “We need to do everything in our power to strengthen our caregivers.” In the case of a Medicaid long-term care applicant who pays a caregiver without this formal contract, Medicaid will most likely consider these payments as gifts, thus violating the retrospective rule. A personal care agreement legitimizes the reason the payments are made to the person, or otherwise specified, and provides proof that the Medicaid claimant is paying money to receive care benefits. If only an informal verbal agreement has been reached, there is no evidence as to why the person is receiving money from the Medicaid applicant. In addition to the contractual agreement, caregivers should keep a daily record detailing the services provided, hours worked and payments received.
This provides further proof of the relationship between the Medicaid applicant (care recipient) and the caregiver, if Medicaid needs it. Family care contracts must be signed by both the caregiver and the care recipient. In some states, notarial certification is required for it to be Medicaid compliant. The responsibilities described in a caregiver contract must be dated so that it is clear when they begin and when they end. It may be necessary to set an end date such as the time when family members reconvene to review the terms of the agreement. When calculating lump sums (including property), the life expectancy of the person requiring care must be taken into account. Suppose an elderly person is 80 years old and has a life expectancy of 7 years. This means that compensation must be calculated for 7 years. If the person is paid $15 per hour for 10 hours/week, this equates to $150/week. Multiply $150/week by 52 weeks, or $7,800, then multiply that by 7 years.
The final amount is $54,600 and is a fair and reasonable amount of compensation for the care provided. Consider creating an “opt-out clause” in case either party wishes to terminate the contract. .