Are you losing money in an effort to provide “free” care for elderly parents or family members? In an effort to save money, many children of senior parents wind up losing money as the result of unpaid time off work or having to quit their jobs altogether.
Fortunately, there are programs available that pay children to take care of their aging parents. The amount varies depending on your situation and rarely replaces a full-time salary. However, the financial boost may be just what you need to make it possible to take time off or minimize work hours to take care of the ones you love.
Programs That Pay Children To Take Care Of Elderly Parents
There are no programs out there that will fully compensate you for the countless hours you’ll spend caring for your aging parents. That said, the income derived from the following programs may help ends meet, or alleviate financial stress, along the way.
MediCal/Medicaid In-Home Support Services (IHSS)
Medicaid services in all 50 of the United States provide some level of compensation to qualified individuals to manage their own, long-term care plan – as opposed to paying an agency to do so. In California, this can include hiring qualified children to provide care for senior parents.
In fact, California has one of the more generous versions of this program because it also pays qualifying spouses, siblings, and extended family members. Those who provide care for qualifying individuals can get paid for everything from direct patient care to housekeeping and errand running, depending on the circumstances.
This program is largely dependent on the income/asset value of the person requiring care. You can contact the MediCal Member Helpline to learn more about qualifications and how to apply.
Home & Community-Based Services (HCBS) Waiver
Have you just received a diagnosis, like Alzheimer’s or dementia, that will require a long-term care plan? If so, now is the time to apply for Home and Community-Based Services (HCBS) waivers. These are designed for people who get Medicaid but didn’t qualify for IHSS.
It can allow you to care for a parent at home, rather than having to transfer him/her to an assisted living or another type of care facility if that goes against your parent’s wishes.
If you’re trying to decide which makes more sense, home care or assisted living facility, we recommend reading, The Cost of Senior Care: Home Care vs Assisted Living, to compare the two.
Examples of the various waivers, all of which are applied through via MediCal using the link provided above, include:
- Assisted Living Waiver (ALW)
- Veteran Directed Care (VD-HCBS) – more on veteran’s care below
- Multi-Purpose Senior Services Waiver (MSSP)
- Home and Community-Based Services Waiver for the Developmentally Disabled (HCBS-DD)
These programs almost always have waiting lists, which is why time is of the essence.
Veteran’s Aid & Attendance Program
The Veteran’s Aid & Attendance Program is overseen by the U.S. Department of Veteran’s Affairs (VA). It was created to support veterans who are struggling to pay for home care services or care costs at other residential facilities.
In addition to being the recipient of a veteran pension, the basic qualifying criteria for the extra Veteran’s Aid & Attendance Pension include:
- You need another person to help you perform daily activities, like bathing, feeding, and dressing, or
- You have to stay in bed—or spend a large portion of the day in bed—because of illness, or
- You are a patient in a nursing home due to the loss of mental or physical abilities related to a disability, or
- Your eyesight is limited (even with glasses or contact lenses you have only 5/200 or less in both eyes; or concentric contraction of the visual field to 5 degrees or less)
You can Click Here to read more about the program and to determine whether or not your parent is eligible.
Long-Term Care Insurance
Sometimes, seniors forget about the funds they set aside or planned for when they need it most. Ask your parent whether s/he ever paid for a long-term care insurance plan. If s/he is suffering from Alzheimer’s or dementia, it’s worth a trip through the file cabinet or safe to search for paperwork. We also recommend checking in with his/her estate attorney or reviewing any will or trust to see if a long-term care insurance plan is accounted for in any of their estate documents.
Paid Family Leave Act
The state of California offers the Paid Family Leave Act (PFL). This legislature ensures employees have the ability to take paid time off work to care for a family member. It requires certification from your parent’s medical care provider, and you can earn 60% to 70% of your wages to do so.
The caveat is that the plan is short-term, only allowing up to eight weeks off work. That said, a combination of your siblings, children, or adult grandchildren may make it possible to provide a long-term family home care plan, interspersing shifts with professionals as needed.
Direct Payment From Family To Care For Elderly Parents
Many families find that a family payment pool is the best and most affordable way to ensure their senior loved one is cared for by a family member, without causing financial stress or demise for the caregiver.
If you go this route, it is wise to consult with an attorney or paralegal who specializes in elder care and estate planning to draw up documentation that is professional, thorough, outlines potential scenarios, and that everyone can sign.
The combination of paying a family member, paying professional caregivers in-between times, and taking advantage of senior care resources in the Bay Area is a wise, comprehensive solution.
A Reverse Mortgage
Depending on the situation, your family may decide it’s beneficial to apply for a reverse mortgage. The Bay Area real estate market has only gone up in the past two to four decades, and that equity is far better used to provide high-quality, loving care at home than saved to disperse to beneficiaries after your parent(s) pass on.
Even a very small equity line of credit, that doesn’t dramatically reduce the home’s total equity, may be exactly enough to pay for family caregivers for the time, energy, and emotional investment required when taking care of elderly parents.
Always consult with a financial advisor or tax attorney before making any major decisions like this, and having a family meeting to gain a consensus so the decision feels equitable to all.
Would you like to learn more about how to integrate paid family caregiving that allows you to take care of elderly parents, while also having access to professional home care providers for respite care or to fill in the shift gaps? Contact HomeAid Home Care and schedule a free assessment.
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