Little-Known Government Program Pays the Cost of Elder Care
WHAT IF 33% OF ALL SENIORS IN THIS COUNTRY could receive up to $1,949 a month in additional income from the government to help cover their elder care costs? THEY CAN!
Under
the right circumstances, a little-known federal program will pay
additional income to cover long term care costs for at least 1/3 of all
US senior households -- that's how many war veterans or their surviving
spouses there are in this country. But the provisions of this program
are such a well-kept secret that only 4.7% of US seniors are actually
receiving the benefit. The great news about this program is the
Department of Veterans Affairs will pay you to hire your family,
friends or just about anyone to take care of you (Caregiving spouses
can't be paid under this program). The program is called "Veterans
Pension."
Most people who have heard
about Pension know that it will cover the costs of assisted living and,
in some cases, cover nursing home costs as well. But the majority of
those receiving long term care in this country are in their homes.
Estimates are that approximately 70% to 80% of all long term care is
being provided in the home. All of the information available about
Pension overlooks the fact that this benefit can also be used to pay
for home care.
It also comes as a
surprise to most people that the Department of Veterans Affairs will
allow veterans' households to include the annual cost of paying any
person such as family members, friends or hired help for care when
calculating the Pension benefit. This annual cost is deducted from
household income and used to calculate a lower "countable income" which
in turn enables families to receive this disability income from VA.
Even though VA claims the benefit is for low income families, because
of the special provision in the regulations -- allowing for deduction
for care costs -- households earning between $3,000 to $6,000 a month
or more can still qualify for Pension under the right conditions.
This
extra income can be a welcome benefit for families struggling to
provide eldercare for loved ones at home. Under the right
circumstances, this annualized medical expense for the cost of family
members, friends or any other person providing care, could create an
additional household income of up to $1,056 a month for a single
surviving spouse of a veteran, up to $1,644 a month for a single
veteran or up to $1,949 a month for a couple.
If
the disabled care recipient has been rated "housebound" or in need of
"aid and attendance" by VA, all fees paid to an in-home attendant will
be allowed as long as the attendant provides some medical or nursing
services for the disabled person. The attendant does not have to be a
licensed health professional. There is also no need to distinguish
between medical and nonmedical services -- all are deductible.
For
a disabled person who has been rated "in need of aid and attendance" or
"housebound", a family member will be considered an in-home attendant,
but that family member has to be paid for services duly rendered. There
is potential for fraud here where a family member may move into the
home and ostensibly receive payment as a caregiver but not actually
provide the level of care paid for. Documentation for this care must be
provided to VA, and it is reasonable for VA to question whether the
services being purchased from a family member living in the household
are legitimate. Such arrangements should be extensively documented and
completely arm's-length.
The care
arrangements and payment for home care must be made prior to
application and there must be evidence that this care is needed on an
ongoing and regular basis. We recommend a formal care contract and
weekly invoice billing for services. Money must exchange hands and
federal law requires employment taxes must be withheld and there must
be evidence of this. All of this documentation must be provided as
proof to VA when making application for the pension benefit. Costs for
these services must be unreimbursed; meaning these costs are not paid
by insurance, by contributions from the family or from other sources.
VA will allow, however, family caregivers being paid by their loved
ones, to turn around and pay the household bills for their loved ones
to help defray the cost of the care.
Due
to the need for a rating, documentation for annualizing care costs and
the extensive proof needed to show the caregiver is indeed an employee
of the care recipient, most people should not try this on their own. An
expert in this area should be sought to help with the application in
order to avoid lengthy delays in awarding a benefit or a possible
denial of benefits. For a list of individuals or companies in your area
who understand how to get this benefit go to http://www.longtermcarelink.net/ref_veterans_consultants.htm