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Retiree11 Asked May 2018

As the sole caregiver for my Mother (96), would money received under a care agreement render ME ineligible for PA Medical Assistance?

I am the sole caretaker for my 96 year old Mother and I need to know if the income from a potential Caregivers Agreement would effect my Medicaid status in PA. Thanks for any legitimate input.

EXPERT K. Gabriel Heiser May 2018
Yes, for Medicaid purposes the income from the Caregiver agreement would be added to your other income in determining your Medicaid eligiblity. That being said, income almost never causes a person to be disqualified, since the amount paid to the nursing home or for other medical expenses is simply deducted first (some states require the use of a simple trust--called a Miller Trust--to hold the income before it is passed on to the nursing home). So unless your total income exceeds the actual cost of the nursing home, it should not as a practical matter cause disqualification from Medicaid.

gladimhere May 2018
It would be considered income for Medicaid purposes. Have you talked with an elder law attorney? I certainly would there maybe a way to pay you, into a trust or something and not have it countable as income? Shares in her home?

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DafnaS May 2018
As a CPA, I can tell you that income is income. You can't set up a trust to hide earned income that will have your SS# on it. Shares in her home? same answer.

Countrymouse May 2018
You just need to look up what the maximum allowable income is, surely. But if your mother is paying you this money as part of a formal contract then it is income, same as any other.

gladimhere May 2018
Potential care agreement? You are not being paid now but possibly in the future?

Llamalover47 May 2018
Monies received by you for caregiving are considered countable assets as far as Medicaid goes.

Retiree11 May 2018
Thanks for the responses. Yes, "gladimhere" I/we haven't executed the Caregivers Agreement yet because I'm 67 and the medical insurance is very important. The slightest increase in income would jeopardize my "low-income" benefits. Yes, "countrymouse" I know what the various allowable limits are BUT I didn't know if the money from a Caregivers Agreement was absolutely, positively considered income that would effect my eligibility.
Thanks again.

annestr May 2018
Thank you, K. Gabriel Hauser for this: income almost never causes a person to be disqualified since the amount paid to the nursing home or for other medical expenses is simply deducted first. I have been to numerous "Medicaid Specialists" who were clueless about this. After years of caring for my husband, I can say respectfully that there is no amount of payment that I wouldn't trade for freedom from this responsibility. May I be spared from the kind of disability that could force a loved one to do what I've chosen to do for so very many years out of love that has become utter defeat and exhaustion.

anonymous272157 May 2018
My aunt's agreement (written) is that she will share utilities and grocery costs. With 3 adults in the home, she pays 1/3. She also pays the companion company several days a week. None of it is my income.

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