What Is A Personal Care Agreement

A stressful conversation for any family is what happens to money when a parent gets sick and serves as the primary caregiver. One way to discuss difficult topics is to organize a family reunion. The healthcare team meets in a comfortable place, at a table with space, to spread out the documents discussed. (Using technologies like Skype can help engage family members who live far away.) A well-organized meeting can provide family members with shared support and a better understanding of the decisions to be made. Here is the formula: Fair market value on a personal services contract = hourly rate x estimated hours per week x 52 x life expectancy. But what is a fair hourly rate (Medicaid does not accept an unreasonable amount)? National Care Planning Councilwww.longtermcarelink.net But who will provide this care? The answer is usually close to home: an adult child. A sibling may become a default caregiver, or one of them is chosen because they live closer or have fewer family obligations. Most often, personal care arrangements are made between an aging parent and an adult child. However, these contracts are also created for grandchildren who care for grandparents, nieces and nephews who care for aunts and uncles, and siblings who care for siblings. Although this type of contract usually exists between two family members, the caregiver does not need to be tied to the care recipient. Instead, the care recipient could be a close friend or private caregiver.

When it comes to creating a formal personal care agreement and paying a caregiver, even a small mistake can result in a denial of long-term Medicaid coverage. Below are the common mistakes that are made (and should be avoided): You can probably create the deal yourself without paying for a lawyer. An agreement can be found among the many legal forms on the Internet. Once you have a version of the agreement that you both know, make several copies. You and your family member must sign and date two copies, each of you keeping one. If you feel more comfortable asking a lawyer to create the agreement, discuss the terms of the agreement with your family member before getting up with the lawyer. This makes the process faster and therefore more cost-effective. You can change a personal care contract at any time. To make a change, you both need to agree.

If you both want to make a change, simply write a note explaining the change – amount of salary, hours worked, various tasks – both by signing and dating the note, and attaching it to the original contract. If there are enough changes that will prompt you to draft a new contract, add the phrase “This agreement replaces all previous agreements between the parties dealing with personal care.” One caveat is that you should not assume that the agency providing the service will allow the care of a family member or an unlicensed organization. Always check with the agency first to make sure they actually cover the payments made to you. If the Medicaid applicant gave only $50,000 to his adult child, Medicaid would treat that transfer as a gift — and impose a penalty (which could cost the plaintiff tens of thousands of dollars). .