Caregiving often comes with financial pressures. Many caregivers cannot afford to give up their paycheck or risk losing their job if they take extended time off for caregiving. Several national studies show that the cost of being a caregiver is high because it can involve additional out-of-pocket expenses, lost wages, and unpaid work.
These options may help to supplement your income, offset the expenses associated with caregiving, or protect your employment.
Assistance under state laws
Efforts to pass a national paid family leave act that protects family caregivers have stalled repeatedly in Congress. Fortunately, some states have passed their own laws to help caregivers maintain their wages and keep their jobs.
Rules around eligibility and the amount of guaranteed payment differ from state to state, but most provide between four and 16 weeks of paid time off. Often, these laws also provide job protection for caregivers.
Currently, state laws assist and protect caregivers in California, Colorado, Connecticut, the District of Columbia, Delaware, Maine, Maryland, Minnesota, Oregon, New Jersey, New York, Rhode Island, and Washington. Hawaii has the Kupuna Caregivers Act, which pays a daily stipend of $70 to family caregivers who also work full time.
Contact your employer or visit your state’s official Office on Aging website for more information.
Medicaid assistance
Some states have waivers that allow a designated caregiver (this can be a family member or friend) to be paid by Medicaid. To qualify, the person receiving care must meet Medicaid eligibility requirements. Read more about this government program.
Local agencies on aging
Your local Area Agency on Aging (AAA) may provide services, including meal deliveries, that ease the financial stress on caregivers. These public or nonprofit agencies address the needs of older adults.
Learn more about AAAs and search for resources in your community.
Programs for veterans
The U.S. Department of Veterans Affairs (VA) has programs designed around caregiver support. They include:
- The Program of Comprehensive Assistance for Family Caregivers.
- VA Aid and Attendance Benefits, or benefits for veterans who are housebound.
For information about VA benefits, contact your Veterans Affairs office, visit the VA Caregiver Support page, or call the VA hotline at 855-260-3274.
Federal tax benefits
You may be eligible for federal tax benefits if you are providing care in your home for a dependent, such as a parent claimed as a dependent on your tax returns. Specific requirements apply; learn more about tax benefits for caregivers.
Life insurance and long-term care policies
Some life insurance and long-term care policies include caregiver benefits that pay for services provided by a family member or privately hired caregiver. Policies that include this benefit may not cover care provided by a spouse.
If you have a life insurance policy or a long-term care insurance policy, contact your insurance agent or the company directly to see what help may be available.
Family compensation
If you are caring for and/or providing housing for a family member with financial resources, consider drawing up an agreement that specifies your role and compensates you for the work and/or shelter you are providing. Seek input from other close family members and have an attorney review any agreement before both parties sign.
Family and Medical Leave Act
A federal law, the Family and Medical Leave Act (FMLA), gives certain employees 12 weeks of unpaid leave per year to provide care for a spouse, child, or parent with a serious health condition. Under this law, eligible workers are guaranteed not to lose their job or healthcare insurance if they take this time off from work for caregiving. The FMLA applies only to companies with 50 or more employees, and certain restrictions apply. Check with your HR department or supervisor for details.
