Every year, unpaid family caregivers provide more than $600 billion worth of care across the United States — a staggering contribution that often goes unrecognized and uncompensated. Many of these caregivers are sons, daughters, spouses, or close relatives providing daily support for aging parents or loved ones with disabilities.
If you’re one of them, you might be wondering: Can I get paid for the care I already provide?
The answer is yes — in many cases, you can. From Medicaid self-directed care programs to veteran caregiver benefits and state-based payment options, there are several legitimate ways for family members to receive financial compensation for caregiving.
In this guide, LummaCare breaks down every major path to getting paid as a family caregiver, how each program works, and what you can expect depending on where you live.
Key Takeaways
- Family caregivers in the U.S. provide over $600 billion in unpaid care each year.
- Programs like Medicaid self-directed care, veteran benefits, paid family leave, and personal care agreements can offer compensation.
- Pay rates vary by state, program type, and level of care — typically between $13 and $25 per hour.
- Most programs require that the care recipient qualify for Medicaid or veteran benefits.
- Some states offer non-Medicaid family caregiver programs for dementia or Alzheimer’s care.
- If you’re not sure where to start, explore your state’s available options at LummaCare.com/states.
Understanding Family Caregiver Pay
Family caregivers perform essential tasks — from cooking and cleaning to assisting with medication, mobility, and personal hygiene. Yet, most do so without pay.
While it’s often an act of love, caregiving can also lead to financial strain, lost wages, and emotional exhaustion. Recognizing this, federal and state governments have created programs that allow caregivers to be compensated, particularly when caring for seniors, veterans, or individuals with disabilities.
The main pathways include:
- Medicaid programs that fund in-home and self-directed care.
- Veterans Affairs (VA) benefits for qualified veterans and spouses.
- Paid family leave laws in participating states.
- Private options like long-term care insurance or personal care agreements.
Let’s explore each in detail.
Medicaid Self-Directed Care Programs
What Is Self-Directed Care?
Self-directed care, sometimes called consumer-directed care, is a Medicaid program model that allows care recipients to choose and manage their caregivers — including family members.
Instead of the state assigning a home care agency, the person receiving care becomes the “employer,” choosing who provides assistance and how. This approach gives individuals more control, dignity, and independence in managing their daily care.
Who Qualifies?
Eligibility typically depends on:
- Being enrolled in Medicaid in your state.
- Meeting income and asset limits set by your state.
- Requiring assistance with activities of daily living (ADLs) such as bathing, dressing, or eating.
If your loved one qualifies for Medicaid and needs help with personal care, they may be eligible for self-directed services — meaning you can get paid for the care you already provide.
You can explore your state’s Medicaid caregiver programs through LummaCare’s directory:
How Much Does Medicaid Pay Family Caregivers?
Rates vary by state, but generally range between $13 and $25 per hour for non-medical caregiving services. Some states offer flat daily rates for live-in care.
For instance:
- In New York, caregivers can earn between $17 and $22/hour.
- In Florida, pay typically ranges from $15 to $19/hour.
- In Texas, rates average $14 to $18/hour.
Pay is typically distributed through a fiscal intermediary (FI) — a third-party agency that manages payroll, taxes, and timesheets for the care recipient.
Home and Community-Based Services (HCBS) Waivers
Introduced in the 1980s, HCBS waivers allow states to use Medicaid funding for care delivered at home instead of in a nursing facility.
These waivers help individuals maintain independence while receiving personal or attendant care from trusted family members. In many states, the HCBS waiver works alongside the self-directed model, allowing the care recipient to choose their caregiver.
Eligibility Criteria
- The person receiving care must meet Medicaid’s financial criteria.
- They must require a nursing-home level of care but prefer to remain at home.
- The state must have available waiver slots (some programs have waiting lists).
HCBS programs often include:
- Personal care services (meal prep, housekeeping, companionship)
- Respite care
- Skilled nursing (if medically necessary)
Each state runs its own version of HCBS. To check your local eligibility and rates, visit your state’s LummaCare page, such as Alabama or California.
Veteran Caregiver Programs
For veterans and their family members, the U.S. Department of Veterans Affairs (VA) offers several ways to receive caregiver pay and benefits.
1. Program of Comprehensive Assistance for Family Caregivers (PCAFC)
PCAFC provides financial support to caregivers of post-9/11 and certain pre-1975 veterans who have significant service-related disabilities.
Caregivers can receive:
- A monthly stipend (often $1,800–$3,000, depending on region and level of care).
- Access to respite care, mental health services, and training.
- Travel reimbursement when accompanying the veteran to medical appointments.
Eligibility requirements include:
- The veteran must be enrolled in VA healthcare.
- They must have a 70% or higher disability rating.
- They require ongoing personal care for at least six consecutive months.
2. Veteran Directed Care (VDC) Program
Similar to Medicaid’s self-directed model, VDC gives veterans a monthly budget to manage their care at home. The veteran can choose a trusted relative — including a spouse or adult child — as the paid caregiver.
Payments vary by location and need but often mirror local home care pay rates.
Learn more directly from the VA or explore LummaCare’s caregiver resources by state.
3. Aid & Attendance and Housebound Benefits
These are pension supplements for veterans or surviving spouses who require help with daily activities or who are largely confined to their home.
Funds can be used to pay family members for care. For example, a veteran receiving Aid & Attendance may use the benefit to compensate a child who provides in-home support.
For details, visit the U.S. Department of Veterans Affairs website or your local VA office.
Paid Family Leave
While the federal Family and Medical Leave Act (FMLA) only guarantees unpaid job-protected leave, several states now offer paid family leave (PFL) that covers time spent caring for a loved one.
As of 2025, these states provide paid family leave benefits:
- California
- Colorado
- Connecticut
- Massachusetts
- New Jersey
- New York
- Oregon
- Rhode Island
- Vermont
- Washington
- District of Columbia
States such as Delaware, Maine, Maryland, and Minnesota are also rolling out programs soon.
How Much Does Paid Family Leave Pay?
Most states replace a percentage of your normal wages during leave — usually between 60% and 85% — for up to 12 weeks. Payments come from a state insurance fund, not your employer.
Who Qualifies?
Eligibility varies, but generally, you must:
- Work for a covered employer (usually 50+ employees).
- Have been employed for at least 12 months.
- Provide documentation from a healthcare provider confirming your loved one’s need for care.
If you’re unsure whether your state participates, check LummaCare’s state resource directory.
Long-Term Care Insurance
Long-term care insurance (LTCI) is a private option that covers ongoing support for individuals who need help with daily living or chronic health conditions.
Some LTCI policies allow beneficiaries to pay family caregivers directly for providing care. Others reimburse after care is delivered.
How It Works
- The policyholder submits documentation of care (hours, services provided, etc.).
- Some policies require care plans approved by a physician.
- There may be an “elimination period” — similar to a deductible — before benefits begin.
Because policies differ widely, it’s important to review the plan’s fine print. If the policy permits family caregiving pay, a written care agreement helps ensure transparency and compliance with insurance rules.
Non-Medicaid State Programs
Not everyone qualifies for Medicaid — and that’s okay. Many states offer non-Medicaid programs that provide limited compensation to family caregivers, especially those caring for loved ones with dementia or Alzheimer’s disease.
These programs are often funded through the state’s Department of Aging or local Area Agencies on Aging (AAAs).
Examples include:
- The Family Caregiver Support Program (available in many states).
- Alzheimer’s Family Caregiver Support in Florida and other states.
- State respite care vouchers that pay caregivers to take a break while temporary help steps in.
To find your local program, visit Area Agencies on Aging’s national directory or use LummaCare’s state-by-state guide.
Pay under these programs typically mirrors local non-medical caregiver wages — often between $13 and $20 per hour.
Personal Care Agreements
When no public program applies, families can still create their own personal care agreement (also called a “family caregiver contract”).
This is a written, legally binding agreement that specifies:
- The services the caregiver will provide.
- The number of hours and rate of pay.
- The frequency and method of payment.
A properly drafted agreement helps avoid misunderstandings and can even serve as documentation for Medicaid eligibility later (to show that payments were legitimate wages, not gifts).
Why It Matters
Without a written contract, informal caregiver payments can complicate tax reporting or Medicaid applications. A personal care agreement protects both parties and ensures that the caregiver’s work is formally recognized.
If you choose this route:
- Consult an elder law attorney or estate planner.
- Keep accurate records of services, hours, and payments.
- Use local market rates as your guideline — typically $15–$25/hour depending on your area.
Average Caregiver Pay by State
Caregiver pay can vary widely depending on where you live, local cost of living, and program availability. Below is an approximate range for non-medical family caregivers in 2025, based on LummaCare research and state-reported averages.
| State | Average Hourly Pay | Program Availability |
|---|---|---|
| New York | $18–$22 | Medicaid CDPAP, Paid Family Leave |
| California | $19–$25 | IHSS, Paid Family Leave |
| Texas | $14–$18 | Medicaid HCBS |
| Florida | $15–$19 | Medicaid Waivers |
| Illinois | $15–$20 | HCBS Waivers |
| Georgia | $14–$17 | Structured Family Caregiving |
| Arizona | $15–$19 | ALTCS Program |
| Pennsylvania | $16–$21 | Medicaid HCBS |
| Ohio | $14–$18 | Waiver Programs |
| Colorado | $17–$22 | IHSS & Paid Family Leave |
These are general estimates and may change annually. Always confirm rates and eligibility through your state’s Medicaid or aging services department.
How to Get Started
If you’re ready to explore getting paid as a caregiver, follow these steps:
Step 1: Confirm Medicaid Eligibility
Determine whether your loved one qualifies for Medicaid in your state. Eligibility is based on income, assets, and care needs. Each state’s rules differ — visit your state’s LummaCare page (e.g., New Jersey) for local criteria.
Step 2: Research Available Programs
Identify which programs your loved one qualifies for:
- Medicaid HCBS or self-directed programs
- VA Aid & Attendance or PCAFC
- Paid Family Leave (if you’re employed)
- Non-Medicaid or state-funded caregiver programs
Step 3: Contact the Right Agency
Reach out to your local Medicaid office, VA regional center, or Area Agency on Aging. They can guide you through application paperwork and eligibility verification.
Step 4: Create a Care Plan
Document your caregiving duties and the number of hours required. Having a clear plan helps determine payment rates and supports your application.
Step 5: Keep Detailed Records
Maintain a log of caregiving hours, tasks, and payments. These records are essential for taxes, reimbursement, and program compliance.
Explore Your State’s Programs
Every state offers unique paths to caregiver compensation — and LummaCare helps you find them all in one place.
Visit LummaCare’s State Directory to explore:
- Medicaid self-directed programs
- State-specific waivers
- Veteran caregiver benefits
- Paid family leave laws
- Local agencies and support resources
Whether you live in Arizona, New York, or Texas, you’ll find clear, up-to-date guidance on how to get paid for the care you already provide to someone you love.
Final Thoughts
Family caregiving is one of the most meaningful and demanding roles a person can take on. While the emotional rewards are immense, it’s also fair to seek financial support for the time, energy, and dedication you give.
Fortunately, more states and programs are recognizing that value — helping families stay together, maintain stability, and receive care at home rather than in institutions.
If you’re ready to learn about your options, start with your state.
👉 Explore your state’s caregiving programs on LummaCare and discover the support available to you today.
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