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.
With offices in Farmington Hills, Royal Oak, Plymouth, and Howell, Accettura & Hurwitz are experienced Michigan elder law attorneys who expertly handle the legal needs of senior citizens and their heirs, of younger folks planning for their retirement, and for veterans seeking their benefits. As estate planners, our goal is to minimize or eliminate taxes, avoid probate, allow you to control the disposition of your assets both during life and after death, and preserve the assets of elders in need of assisted living or nursing home care. Our other specialties include Medicaid planning and dispute resolution. Learn more at elderlawmi.com.