How Family Caregivers Get Paid to Care for an Elderly Loved One in the US: A Guide to Medicaid Options

09/11/2025

Learn how to get paid as a family caregiver

Caring for an elderly parent or family member can be a full-time job—emotionally rewarding, but also financially challenging. What many people don’t realize is that in many cases, you can get paid to provide care for a loved one at home—especially through programs funded by Medicaid.

If you’re exploring ways to balance caregiving and income, this guide will help you understand how Medicaid programs across the U.S. may pay family caregivers, how it works, and how to get started.

Is Paid Family Caregiving Allowed Where I Live?

Yes! Most US states—including Texas, Michigan, Ohio, and Pennsylvania—offer Medicaid-funded and other government options that pay relatives for non-medical home care.

This is especially common through what’s known as Consumer-Directed Care (also called self-directed or participant-directed care). These programs allow eligible individuals to choose their own caregiver, which can be a family member.

How Medicaid Family Pay Works

Medicaid is a joint federal and state program, so rules vary by state, but here’s the general process:
Step 1: Your Loved One Must Be Medicaid-Eligible
The person receiving care must qualify for Medicaid based on income and assets. If they are not yet on Medicaid, they’ll need to apply through their state’s Medicaid office.

Step 2: They Must Need Assistance with Daily Living

States typically require a functional assessment to determine whether the person qualifies for home- and community-based services (HCBS). These needs might include:

  • Help with bathing, dressing, toileting
  • Cooking and meal support
  • Medication reminders
  • Mobility and safety monitoring

Step 3: Apply and Enroll for Self-Directed or Participant-Directed Care (Medicaid Waiver or HCBS Program)

If your loved one qualifies, they may be enrolled in a Medicaid waiver or similar program that supports home-based care. Common programs include:

  • Home and Community-Based Services (HCBS) Waivers
  • Personal Care Services (PCS)
  • Cash and Counseling / Self-Directed Programs

These programs let the care recipient choose their own caregiver, who can then be paid through the program.

Step 4: Register to Become the Paid Caregiver

Once enrolled in the appropriate program, you (the caregiver) may need to:

  • Pass a background check
  • Complete basic caregiver training
  • Enroll through a fiscal intermediary (an agency that handles the payments)
  • Submit timesheets or use electronic check-in systems

Once approved, you’ll receive payment—usually hourly—funded by Medicaid. Compensation varies based on:

  • Your state
  • The approved number of care hours
  • Medicaid reimbursement rates

On average, family caregivers might earn $10–$20 per hour.

Other Options Besides Medicaid

If your loved one doesn’t qualify for Medicaid, consider:

  • Veterans Programs: VA offers Aid & Attendance and the Veteran-Directed Care program.
  • Long-Term Care Insurance: Some policies pay family caregivers.
  • Tax Benefits: You may qualify for tax deductions or credits. This varies by location.
  • State-Specific Programs: Some states offer caregiver support grants or stipends even outside of Medicaid.

Caring for a loved one shouldn’t mean sacrificing your own financial stability. Medicaid programs in many states recognize the value of keeping care at home, and more importantly, the value of family caregivers.

With a little research and the right support, you may be able to get paid to provide the care you’re already giving—with love. Are you interested in learning more about this program? We are happy to walk you through the process.