How Much Do Family Members Get Paid for Caregiving?

How Much Do Family Members Get Paid for Caregiving?

Ever wondered how much do family members get paid for caregiving? Being a family member’s caretaker is a really fulfilling experience. Being the primary caregiver is not just about spending time with your loved one; it’s about ensuring they receive the best care. In this role, you won’t need to worry about a third person providing care who might lack sympathy or attentiveness. It’s a fulfilling experience where you play a crucial role in their well-being.


Unfortunately, caregiving for a family member comes with associated expenses. Caregivers often have to cut back drastically on their work hours or even quit their jobs to provide the best care possible. This commitment involves spending countless hours on everyday duties, meal preparation, driving to appointments, ensuring safety and well-being, and offering companionship—all without receiving any payment for their dedicated work. Thus you might be interested to know how to get paid by the state for taking care of someone.

According to the Caregiving in the U.S. 2020 AARP Research Report, 1 in 5 caregivers experience significant financial distress as a result of providing care. 1 in 4 people have increased their debt, and 3 out of 10 have ceased saving.

Caregivers frequently have to pay for caring expenses out of their own pockets despite the fact that they can lose a significant amount of income while providing for their loved ones. Family carers spend nearly 20% of their income on caregiving-related expenses, according to the AARP survey.

Financial stress, coupled with the physically and mentally demanding tasks of caring for an elderly loved one, can have a negative impact on the caregiver. In the same AARP study, 26% of respondents reported their health deteriorating due to caregiver responsibilities. This is why government and other organizations offer various family caregiver programs.

Do caregivers receive financial assistance?

Do caregivers receive financial assistance?

Yes. Family members indeed get paid for caregiving. How much they receive depends on the program they have enrolled in. There are certain criteria that they must first meet to be eligible to be a caretaker. While caring for a loved one, family caregivers need to be aware of their financial help possibilities.

  • Check if you are eligible for state Medicaid programs
  • Opt for community or home-based services program
  • Check if your loved one is eligible for receiving Veterans Aid
  • Identify if your loved one has enrolled for a long-term care insurance policy that offers compensation to caregivers 
  • Check if the other members of the family are willing to offer you money for the care you are providing

Depending on the program you have enrolled in, you will receive funds to provide for the elderly loved one. This will ensure you are not financially stressed out while you are devoting your time to making sure that your loved one feels safe, secure, and cared for.

An overview of how much do family members get paid for caregiving

According to Max Mayblum, a certified senior advisor and the CEO of Givers, which aids caregivers in managing their finances, gaining access to savings, and participating in government programs, getting compensation through government assistance programs requires some level of training and credentialing. Other public compensation programs such as local support programs or tax credits are accessed without licensure. Incase you are wondering how to become a caregiver for a family member; You can enroll for free caregiver certification online to be eligible for the benefits. Besides you can also join caregiver assistance programs.

State Medicaid Programs: A Lifeline for Caregivers


Many states use Medicaid to fund consumer-directed personal assistance programs (CDPAPs). In these programs, users opt to pay family members or friends as caregivers or care partners instead of having a state-designated caregiver assigned to them. This arrangement allows users to receive compensation for the in-home care they receive.

State Medicaid Programs

For paid carers, various laws and regulations apply in each state. Some caregivers are required to obtain a caregiving certificate, such as an advanced home care assistant or home care aide, and join a state organization known as a consumer-directed program.

There are state-specific requirements for receiving government assistance for family caregivers. For instance, compensated providers in Washington State are required to finish 75 hours of fundamental training and become licensed home care aides within 200 days of the day that their services begin.

The Washington State Department of Social and Health Services, which issues this professional certification, offers training on the fundamental abilities and population-specific abilities required to deliver direct care. This training is primarily for safety. The classes impart training on how to handle someone who has any physical or mental disability or someone who can’t bear weight on their feet. you can visit the Medicaid website of your state to check the guidelines to become a certified caregiver.   

Long-Term Care Insurance and Life Insurance

Depending on the terms and scope of the policy, long-term care insurance, and life insurance policies may be used to pay for a caregiver’s services. Some insurance plans offer policyholders reimbursement for hired caregiver services. An individual can often choose from a variety of care alternatives for coverage when they first acquire their policy.

A person may not be eligible for long-term care insurance or may only be able to purchase a certain amount of coverage if they are in poor health or are currently getting long-term care services. It’s vital to read the exact policy paperwork and speak with an advisor from the insurance plan to understand the extent of coverage, any limitations, and the procedure for filing claims because caregiver coverage isn’t always included in a long-term care insurance policy.

Veterans Programs

Veterans Programs

Caregivers of veterans can qualify for compensation if both the veteran and the caregiver meet specific criteria. The caregiver must be an adult who lives with the veteran in need of care or is a family member. The veteran must also have received a medical release from the U.S. military or have an individual VA disability rating (individual or combined) of at least 70% and require at least six months of ongoing in-person care assistance. You can check the Veterans Assistance official website to learn how you can get paid by the state for taking care of a family member who is a veteran.

Tax Credits: Alleviating Financial Burden for Caregivers

As per the National Alliance for Caregiving and AARP, 75 percent of family caregivers said they spent an average of $7,242 annually on out-of-pocket expenses for caregiving. Fortunately, tax credits are offered to caregivers who have spent costs for dependent care.     

What is the average pay for family caregivers?

The compensation offered to a family or home caregiver differs depending on the plan or the program they have enrolled in. Thus the family caregiver pay rate might vary. To better understand what amount of compensation is offered for caregiving services in general, one might take into account the average wage of professional caregivers employed by home care agencies.

Home health and personal care aides earned an average of $30,930 in 2018, or roughly $14.90 per hour, according to the Bureau of Labor Statistics. The hourly wages in the lower tenth percentile were approximately $10.80, while those in the upper ten percentile were approximately $18.45.

Home health aides earn the highest wages in states like Washington, Oregon, North Dakota, New York, and Alaska. Thus the government assistance for family caregivers is more in these areas. The compensation for a caregiver for elderly is influenced by both their unique circumstances and the needs of the individuals they care for. Choosing to be a carer or care partner can have an impact. It might affect the accumulation of money for Social Security. This, in turn, can influence the size of your Social Security checks. This impact is especially notable if you’re already receiving benefits.

What is the average pay for family caregivers?


If you’re considering becoming a caregiver and are of retirement age, you can continue receiving Social Security benefits while working. Household employees, including caretakers, qualify for Social Security benefits only if their quarterly wages reach at least $2,600. As a result, caregivers won’t receive additional credits toward their Social Security benefits if their earnings fall below this quarterly ceiling.

Conclusion


Providing care for an elderly family member can be rewarding, especially with compensation for your selfless work. Government assistance programs can ease financial stress, allowing you to focus on the member needing care. Hence you will be taking care of elderly parents at home and getting paid. The compensation you receive depends on the caregiver certification program levels you complete, providing the security you seek while helping a loved one.

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