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How to Become a Paid Caregiver for Your Loved One Through Medicaid
Children, spouses, siblings and friends of elderly people can get paid by Medicaid to help take care of their loved ones. Medicaid would rather pay a friend or family member to help someone while they are still living in their own home, instead of paying for them to be in a long-term care facility.
Genworth, a Virginia-based provider of long-term care insurance, conducted a survey on the cost of care for seniors. Nationally, the median price for one month in a private room in a nursing home in 2024 was about $10,646. A semi-private room was $9,277 a month.
To keep clients living at home longer — even once they need some assistance — nearly all states and the District of Columbia offer some kind of program through Medicaid that lets clients choose a family caregiver who is paid with Medicaid funds. Many programs are “participant-driven,” which means participants can choose who will take care of them and Medicaid will pay for some or all of the cost.
“The vast majority of older adults want to stay in their homes as they age, and allowing them to pay a friend or family member to help with their daily needs can make that possible,” said Susan Reinhard, former senior vice president of AARP’s Public Policy Institute. “Paying family caregivers is a solution that saves states money and meets the growing need for long-term care.”
Although recent budget cuts at the national level and across some states could limit the amount of money caregivers can receive, these options are still currently available. Those cuts will happen over 10 years starting in 2026. Check here for a state-by-state breakdown.
If you’re worried about how to care for a loved one, the last thing you need is the stress of being strapped for cash. Getting paid to be a caregiver for a family member is a start, but if you need even more extra money than that can provide, check out some of our favorite ways to make quick cash.
Requirements vary by state and program. Most of the time, clients must show they need a certain level of care, and caregivers must show they are capable of providing that care. If the client needs medical care the loved one isn’t trained for, they cannot be designated as the caregiver.
The amount of money family caregivers are paid also varies among states’ Medicaid programs, the level of care the individual needs and the average wage for a home health aide in each state. The programs that allow family caregivers to be paid also go by different names and have different caveats and benefits in each state:
Medicaid eligibility in general, not just for these programs and waivers, is not consistent across the country. The limits vary by state. State-specific eligibility can be found here. If a senior is already enrolled in Medicaid, the next step is contacting their state’s Medicaid office.
The American Council on Aging strongly recommends finding a Medicaid planner to help with applying for caregiver roles and other benefits.
Katherine Snow Smith is a former staff writer at The Penny Hoarder. She writes about ways to make money, save money and other topics. Her work has appeared in the Tampa Bay Times, Charlotte Business Journal and Greenville (S.C.) News. Freelancer Adam Palasciano contributed to this post.
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