Caregiver Contracts Now Required

While Caregiver Contracts for services provided by family members have been required by Medicaid for many years, effective October 1, 2015 they are required for independent caregivers.

The new policy applies not only to services normally associated with personal care (like health care monitoring, medical treatment, securing hospitalization, visitation, entertainment, travel, transportation, financial management, shopping, home help, and assistance with ADLs), but also home or cottage repairs and care, property maintenance, property taxes, homeowner’s insurance, heat and utilities for the homestead and other real property.

Thus, all payments made for in-home care within five years of filing a Medicaid application will be considered gifts (which will result in penalties precluding the state from paying for the nursing home) UNLESS there is a written contract that complies with the new rules. Effective October 1, 2015 the policy appears to apply even if the caregiver is an independent, licensed, commercial third party!

Folks, don’t try this at home. Caregiver agreements must be prepared by an experience elder law attorney familiar with the Medicaid rules.

Posted in 2015 Newsletter, Elder Law

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