Does the SFC Stipend Come From a Care Recipient's Social Security Check?

One of the most common questions we get about the Structured Family Caregiving program is whether the caregiver's pay comes out of the care recipient's Social Security check. This is a natural concern, especially for families relying on Social Security benefits to cover essential expenses for their loved ones.

Let's clear up the confusion: caregivers under the Structured Family Caregiving program are not paid from the care recipient's Social Security benefits. Instead, the caregiver's compensation comes directly from Medicaid funds.

What is the Structured Family Caregiving program?

The Structured Family Caregiving program is a Medicaid-funded initiative designed to support family members who take on the role of primary caregivers for their loved ones. Through this program, family caregivers can receive financial compensation and additional resources to help them provide the best possible care.

This program is available to care recipients who meet Medicaid's eligibility criteria and require assistance with activities of daily living like bathing, dressing, meal preparation, and medication management. By compensating family caregivers, the program allows recipients to remain in the comfort of their own homes rather than moving to long-term care facilities.

Why Social Security benefits are not affected

Social Security benefits are a separate federal program designed to provide income to individuals who are retired, disabled, or otherwise eligible. These funds support personal living expenses like housing, utilities, and groceries. The Structured Family Caregiving program, on the other hand, is funded entirely by Medicaid and has no bearing on Social Security income.

This separation makes sure that the care recipient's Social Security benefits remain untouched and fully available for their intended purpose. Families can rest easy knowing that enrolling in this program won't reduce or alter their loved one's Social Security payments.

Benefits of Medicaid-funded caregiving

The distinction between Social Security and Medicaid funding is important because it highlights the additional support Medicaid provides beyond standard health coverage. For caregivers and families, this distinction offers several key advantages:

• Financial relief: Family caregivers often face financial strain due to the demands of caregiving. The Structured Family Caregiving program provides compensation to ease this burden without taking away from the care recipient's resources.
• Dedicated resources: Along with financial compensation, caregivers may also receive training, care coordination support, and other resources to help them succeed in their role.
• No impact on benefits: Social Security benefits remain intact, so families don't have to choose between accessing caregiving support and maintaining their financial stability.

Common concerns addressed

1. Will enrolling in the program reduce the care recipient's other benefits? No. The program works alongside existing benefits like Social Security and Medicare. Medicaid funding for the caregiver's compensation is entirely separate.
2. Does this create tax implications for the care recipient? No. Under IRS Notice 2014-7, the stipend paid to caregivers through Medicaid-funded programs is tax-free. This means the caregiver's pay is not considered taxable income, and there is no impact on the care recipient's tax obligations or benefit calculations.
3. What if the care recipient's Social Security benefits aren't enough to cover their needs? This is exactly why Medicaid-funded programs like Structured Family Caregiving exist. They provide additional support to fill the gaps, as long as the care recipient's Social Security benefits are within Medicaid's income and asset limits.

What else to consider

Families often wonder about hidden costs or how benefits, like SSI or state-specific programs, may interact with Medicaid payments.

Cost-sharing requirements

In some states, Medicaid programs may require a cost-share, such as small co-pays or contributions based on the care recipient's income. We recommend you check your state's specific Medicaid rules to understand if this applies to your situation.

Other benefits and eligibility

Receiving other benefits, like Supplemental Security Income (SSI) or veterans' benefits, can sometimes influence Medicaid eligibility or payment amounts. For example, certain types of income may be counted toward Medicaid's income limits. However, many states have special rules that still let individuals qualify for Medicaid even while receiving these benefits.

If you're unsure about how these factors might affect your situation, our team can help clarify. Feel free to reach out at contact@joingivers.com for guidance.

How to get started

If you're interested in enrolling in the Structured Family Caregiving program, the first step is determining eligibility. This includes verifying Medicaid eligibility for the care recipient and assessing their need for daily living assistance.

Check your eligibility at joingivers.com/apply >>

Once eligibility is confirmed, the caregiver can get onboarded as a paid provider under the program. Our team is here to guide you through the process and answer any questions you might have about eligibility, enrollment, or how the program works.