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Paying for Care


Costs for care occurring in a home setting vary and depend upon multiple factors. They include the availability of services, and whether costs qualify for assistance. Resources to pay for home health agency or home care agency services will influence customized planning options.
 

Payment

Home Health Agency

Home Care Agency

Medicare coverage Yes, criteria-specific No
Medicaid* Varies from state to state** Varies from state to state**

Private pay coverage

Yes, but not common

Yes

 

Learn about ideas for paying for care from LongTermCare.gov.
 
*”Arizona Health Care Cost Containment System (AHCCCS) is Arizona's Medicaid agency that offers health care programs to serve Arizona residents. Individuals must meet certain income and other requirements to obtain services.”
 
**Compare differences between Medicare (a federal program), and Medicaid (a federal-state program).
 

Privately Paying for Care

Privately paying for care generally indicates a person will independently hire an in-home worker (paid caregiver) or go through a registry or staffing agency. As applicable, determine if you, the person receiving care, or the agency is considered the employer of the in-home worker.
 
Individuals who hire in-home workers may also have state and federal responsibilities as an employer. References and topics are not intended to be inclusive, nor serve as advice concerning such accountabilities. It is the responsibility of employees and students at the University of Arizona to research and determine the full extent of employer and employee obligations; to monitor and verify compliance; and to contact tax, insurance, legal and other professionals as needed.
 
When resources allow, some individuals and family members supplement the existing care team in assisted living, skilled nursing and hospital settings, by employing a fee-for-service home health or home care professional, for observation and patient advocacy purposes. This can be useful in long-distance elder care situations, and locally when the UA individual has a complex schedule.
 
…People sometimes explore these options through a case, or care management arrangement with an “…Aging Life Care Professional, also known as a geriatric care manager….” Customized options can address managing care needs, appointments and related support. Features for consideration include scope of services and whether insurance plans, or individuals and families pay for amenities.


Dependent Care and Tax Liability Issues

A flexible spending account (FSA) allows employees eligible for full benefits to set aside money pre-tax to use for medical expenses (a health care FSA) or for qualifying childcare and/or elder care fees (a dependent care FSA).
 
The Internal Revenue Service has determined that employees may allocate up to $5,000 per year in a dependent care assistance account established by their employer. If expenses for qualified elder care or qualified elder care and child care combined exceed the $5,000 limit, they may be subject to income tax. This information is not intended to serve as tax advice. Please consult your professional tax advisor to identify full tax implications and to determine the optimal use of dependent care offerings. Visit Human Resources regarding flexible spending accounts. Request child and elder care resources through Life & Work Connections.