Life expectancy is calculated using florida Medicaid life expectancy tables. The sooner a personal service contract is signed, the better it is for Medicaid planning purposes. You will notice that the link above refers to two different life expectancy tables. Indeed, the care agreement is intended to protect SSI, and then another life expectancy table must be used as the basis for calculating the fair market value of a personal service contract. If your goal or that of your loved one is to apply for Medicaid to receive government support, a personal care agreement can help you qualify for the program. This type of agreement allows you to pay a caregiver for future services in order to legally issue assets. This means you can pay a caregiver today for the services you expect to need six months or even three years later. This allows for a lump sum payment instead of having to slowly deplete assets over time. Due to the nature of these caregiver agreements, timing is not everything. If you set them up early, you`ll have more time to spend money on Medicaid eligibility, but if you`re preparing for a Medicaid contingency plan — trying to quickly scale down assets to qualify for Medicaid as soon as possible — these agreements are still valid and are used frequently. When done right, personal care agreements are a strategic way to transfer wealth to your heirs, protect your assets, and make sure you can qualify for Medicaid. These agreements are a powerful tool in any asset protection arsenal. It is important that lump sum payments are calculated correctly.

The incorrect calculation of the payment is a reason for Medicaid to consider it a gift, even in states that allow this type of payment. Therefore, this could violate the Retrospective Medicaid Rule and lead to a period of Medicaid ineligibility. A lump sum payment is calculated on the basis of two factors; an appropriate hourly wage (market rate) and the life expectancy of the person in need of care using an actuarial life table (a table that calculates the remaining life expectancy of people of different ages). If a Medicaid beneficiary dies earlier than the calculated life expectancy, the remaining funds may have to be paid into Medicaid. But who will provide this care? The answer is usually close to home: an adult child. A sibling may become the default caregiver, or one of them is chosen because they live closer or have fewer family obligations. The only restriction on signing a family care agreement before applying for Florida Medicaid is that the contract must be valid. That is, the caregiver must already support the prospective Medicaid applicant. The hourly rate for a professional caregiver ranges from $75.00 to $130.00 per hour, so the reduced rate would be significantly reduced for a family member (who is not a nurse or health professional) who enters the role of a caregiver.

In addition, the applicant`s life expectancy is based on Florida Medicaid`s actuarial life expectancy tables. (See the life expectancy table for this information on life expectancy). Most often, personal care arrangements are made between an aging parent and an adult child. However, these contracts are also created for grandchildren who care for grandparents, nieces and nephews who care for aunts and uncles, and siblings who care for siblings. Although this type of contract is usually between two family members, the caregiver does not need to be related to the care recipient. The person who needs care could instead be a close friend or a private caregiver. Amendment/Termination Clause A clause that allows the personal care agreement to be amended if both parties agree to the amendments should be included. If the agreement is long-term, it is strongly recommended to review it annually and amend it if necessary.

A clause allowing the termination of the contract is also recommended. By using a life-long care arrangement, an older parent can reduce their income or assets, receive care from a family member, and help themselves qualify for Medicaid-funded nursing home care. At the same time, they can keep their financial resources within the limits of their families. To understand how it works, some general information about Medicaid is needed. The Florida Supreme Court noted that florida`s nursing home law only requires nursing homes to provide just over two hours of actual care per resident per day, meaning nursing home residents can spend most of the day without personal care. Enter the personal service contract. Essentially, a personal services contract is a contract between the Medicaid claimant and a designated caregiver for services not provided by the qualified nursing home or assisted living facility (for example. B attend nursing home nursing plan sessions, deal with lawyers, attend appointments with doctors, be a lawyer, drive the senior to appointments or even entertainment events, and more…). The caregiver is usually a family member, that is. B an adult child, but it can really be anyone (someone with or without formal nursing training or experience). Personal care contracts formally establish a business relationship between the care recipient (employer) and the caregiver (employee).

On the basis of the terms of the agreement, which must be in writing, the caregiver will be compensated for the provision of care services. As mentioned above, personal care agreements offer protection against violations of the Retrospective Medicaid Rule. In addition, they help avoid family conflicts, as the contract clearly states who will care for the person in need and how much the caregiver will be paid. In the case of a Medicaid long-term care applicant who pays a caregiver without this formal contract, Medicaid will most likely consider these payments as gifts and therefore a violation of the retrospective rule. A personal care agreement legitimizes the reason the payments are made to the person, or otherwise stated, provides proof that the Medicaid applicant is paying money to receive care services. If only an informal verbal agreement has been reached, there is no evidence as to why the person is receiving money from the Medicaid applicant. In addition to the contractual agreement, caregivers should keep a daily record detailing the services provided, hours worked and payments received. This provides further evidence of the relationship between the Medicaid applicant (care recipient) and the caregiver, in case Medicaid needs it. .