Get paid through Medicaid in Colorado
Medicaid is a joint federal and state program that provides health coverage to eligible low-income individuals, including families, seniors, and people with disabilities. Medicaid waivers allow states to offer additional services and benefits not typically covered under Medicaid by "waiving" certain federal requirements to provide more tailored support to specific populations, such as those needing long-term care.
In Colorado, the following Medicaid waivers are available with an option for caregiver pay:
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Medicaid programs and waivers can change over time, so it's important to consult the official Colorado Medicaid website or contact the Colorado Department of Human Services for the most up-to-date information on available waivers and eligibility requirements.
How does a Medicaid waiver work to pay family caregivers?
Medicaid waivers allow family caregivers to get paid through self-direction programs (also known as consumer direction, participant direction, or other similar names), giving care recipients more control over their care by enabling them to choose who provides it, including family members. To get paid, the care recipient must be evaluated and approved for in-home care, after which the caregiver may need to complete training, acquire credentials, and be "employed" by an agency that processes payments. Once enrolled and hired, caregivers must document and verify their work according to the program's procedures.
How much do family members get paid by Medicaid for caregiving in Colorado?
Pay rates for family caregivers vary based on:
- Program guidelines: Each waiver program may have specific rules and regulations regarding caregiver compensation. These guidelines often outline the maximum hourly rate allowed.
- Local wage rates: Hourly rates are determined at the local zip code level based on a variety of factors.
- Qualifications and experience: Your qualifications and experience as a caregiver can impact your hourly rate. If you have specialized training or certifications relevant to caregiving, it may justify a higher rate. Additionally, your years of experience in caregiving can also influence your compensation.
- Level of care required: The level of care needed by the individual you are caring for can impact your hourly rate. Higher levels of care, such as providing medical assistance or supporting individuals with complex needs, may justify a higher rate compared to basic caregiving tasks.
- Time commitment: The number of hours you dedicate to caregiving can influence your hourly rate. If you are providing care full-time or have a significant time commitment, it may justify a higher rate compared to part-time caregivers.
- Market demand: The demand for caregivers in your area can also affect your hourly rate. If there is a shortage of caregivers or a high demand for specific types of care, it may drive up the hourly rates.
Annual unpaid care value:
$11.2B
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Can you get paid to care for your loved one?
Get paid through VA in Colorado
Veterans, and the surviving spouses of veterans, have a few options to pay family caregivers.
Veteran Directed Home & Community Based Care in CO
The Veteran Directed Care (VDC) program allows veterans to choose how to direct their monthly care budget. This means that when hiring a caregiver, a veteran can choose to hire his/her family member. The caregiving family member will be paid the hourly rate determined by the VA, typically $8-$21 per hour. VDC is available to veterans of all ages enrolled in VA medical benefits and require skilled services and assistance with activities of daily living.
Veteran Aid & Attendance Pension Benefit in CO
If your veteran loved one requires professional long-term in-home, assisted living, or nursing home care, you may be eligible for Aid and Attendance (A&A). The A&A Pension can provide up to $3,261 per month to pay for care, including to caregiving family members. A&A is an add-on benefit that requires eligibility for the basic VA pension or survivor pension, as well as meeting a disability requirement.
Housebound Pension Benefit in CO
The Housebound Pension benefit provides funds to veterans who are mostly unable to leave their homes. Similar to the A&A benefit, the Housebound Pension can be used to pay family caregivers. The Housebound Pension can be worth up to $1,882 per month, and spouses are unable to be paid as the family caregiver under the Housebound benefit, as spouse income is included in the calculation of the benefit. To qualify for Housebound, a veteran must be limited to his/her house and be eligible for the basic VA pension. Veterans cannot get A&A and Housebound benefits at the same time.
Program of Comprehensive Assistance for Family Caregivers (PCAFC) in CO
The PCAFC is the VA's broadest program targeting family caregivers. The program provides family caregivers with a stipend of up to $2,750 per month, in addition to training, counseling, and respite care. To qualify, the veteran must have been critically hurt or had a serious illness in the line of duty, and require help with at least one activity of daily living.
Find support through the Colorado Department of Human Services
Every state is mandated by the federal government to create support systems for family caregivers. They often reach local communities through Area Agencies on Aging (AAAs).
Area Agencies on Aging are crucial in supporting family caregivers caring for older adults. These agencies typically offer various services, resources, and programs to assist family caregivers in their caregiving responsibilities. Some of the most common ways in which state Agencies on Aging support family caregivers include:
- Information and referrals: AAAs provide guidance on local resources, support groups, caregiver training, and respite care options.
- Caregiver education and training: They organize programs on caregiving techniques, stress management, healthcare navigation, and legal/financial aspects.
- Respite care: They offer temporary relief for caregivers, enabling them to take breaks and attend to their well-being.
- Support groups: They facilitate caregiver support groups for sharing experiences, concerns, and learning from others.
- Caregiver assessments: AAAs evaluate caregivers' needs and provide tailored support and recommendations.
- Counseling and consultation: They offer professional guidance and emotional support for caregivers.
- Advocacy and policy development: They advocate for caregiver-friendly policies and programs.
- Access to benefits and services: They assist caregivers in accessing benefits and programs like Medicaid, home-based services, and transportation assistance.
How do I find my local AAA?
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Get tax credit for caregiving in Colorado
What is a tax credit?
Tax credits are a way for the government to incentivize and compensate taxpayers for positive activities. A variety of tax credits cover a wide range of expenses and situations such as education, green energy, and caregiving. A tax credit is a dollar-for-dollar reduction of the income tax you owe. For example, if you owe $4,000 in federal taxes but are eligible for a $3,000 tax credit, your tax bill is $1,000.
What tax credits are available for family caregivers?
The
Child and Dependent Tax Credit (CDCTC) is a tax credit earned by caregivers for a percentage of care-related expenses. Eligible expenses must be for the care of a child or dependent in order to enable the taxpayer to work or look for work.
How much can I earn in tax credits for caregiving?
The total tax credit you can claim in Colorado for caregiving is $1,400.
Additionally, Colorado matches the federal tax credit up to 50%, which can equate to an extra $300 off your taxes.
While there is no state tax credit in the works, taxpayers in Colorado may contribute to the Family Caregiver Support Fund, which supports the work of Easterseals Colorado to provide programs and services for individuals living with disabilities and chronic health care needs, and the family caregivers who support them. Read more...
The CDCTC provides a tax credit for a percentage of your eligible caregiving expenses. The maximum CDCTC at the federal level is $1,100.
To get the CDCTC, you must claim your loved one as your dependent on your tax forms. You loved one must qualify to be claimed as a dependent based on a number of criteria. After claiming your loved one as a dependent, you will need to fill out
tax form 2441. The tax form requires a clear picture of your care-related expenses that allowed you to work or look for work.
Other ways to get paid as a family caregiver in Colorado
Other caregiver pay programs in CO
Here are a few caregiver payment programs in your state that you may want to explore:
Long term care insurance
If your loved one has a long term care insurance policy, that policy may allow for the direction of funds to a family caregiver. To learn if this is an option for you, contact your loved one's insurance company or agent and ask about caregiver benefits.
Employer-sponsored caregiving leave
A growing number of companies are offering to pay employees while they take a leave to take care of a loved one. To learn if this is an option for you, talk to the Human Resources department at your company.
While the federal government does not require private employers to offer paid family leave, Colorado is enacting a rule in 2024 that could be worth $1,100 per week to caregivers. Employees can receive 90% of their weekly earnings for up to 12 weeks to care for a seriously ill family member. Learn more here
Get paid by family
When your family measures all of the
potential costs of care, including nursing homes, in-home nurses, and more, they may recognize that your support is a much more cost-effective option. If there are funds available, you should ask to be compensated for your time and efforts, especially when compared to the costs of the alternatives.
Know your caregiver rights and resources in Colorado
Legal rights and protections for caregivers are essential to ensure their recognition, support, and fair treatment, allowing them to fulfill their caregiving responsibilities while safeguarding their own well-being.
Laws and programs in Colorado that provide support to family caregivers include the following:
- CARE Act: The Caregiver Advise, Record, Enable (CARE) Act, passed in over 40 US states, is intended to provide family caregivers of hospitalized patients with the knowledge and skills needed for safe and efficient transitions.
- Family and Medical Leave Insurance: The Colorado Family and Medical Leave Insurance (FAMLI) program provides paid leave for eligible employees to take time off for personal or family health issues, ensuring financial support during critical periods
- Colorado Respite Coalition: The Colorado Respite Coalition provides resources, advocacy, and support to caregivers, ensuring they have access to respite care services to improve their well-being and the quality of care they provide.
- Colorado Division of Aging and Adult Services: The Colorado Division of Aging and Adult Services offers various programs and services to support family caregivers. These include caregiver support programs, caregiver training and education, respite care resources, and assistance with navigating long-term care options.
- Long-Term Care Ombudsman Program: Colorado's Long-Term Care Ombudsman Program advocates for the rights and well-being of individuals receiving long-term care services, including those cared for by family caregivers. The program provides information, assistance, and advocacy to address concerns and ensure quality care.
