How to Get Paid by the State for Taking Care of Someone

Providing care for a loved one is an act of compassion, but it can also be a serious financial commitment. Many caregivers find themselves cutting back on work hours, using personal savings, or covering expenses out of pocket. That’s why several state-funded programs exist: to ease the financial burden and recognize the essential role that caregivers play in supporting the health and well-being of others.

Across the U.S., states offer a variety of programs that allow caregivers—often family members—to receive compensation for the care they provide. These programs vary by state, with different eligibility requirements, application processes, and funding sources. Understanding what’s available in your area is the first step toward receiving support for the critical work you’re already doing.

At Amazing Home Care, we help caregivers in New York navigate these options every day. As a trusted provider of home health care services, we’re committed to helping you access the support you deserve—so you can focus on what matters most: caring for your loved one.

Understanding State-Funded Caregiver Payment Programs

States are increasingly recognizing what many families have known all along: caregivers are essential. Whether you’re helping an aging parent with daily tasks or supporting a loved one with a disability, the care you provide is vital—and in many cases, it’s eligible for compensation.

Most state-funded caregiver payment programs fall into two main categories: Medicaid-funded and non-Medicaid options. Medicaid programs often include Personal Care Assistant (PCA) and Home Health Aide (HHA) services, which allow eligible individuals to receive in-home care through a provider agency. In some cases, family members can be employed and trained as caregivers under these programs, depending on state guidelines.

Non-Medicaid programs vary more widely by state and may be offered through local agencies on aging or other community-based services. While they may have different names and requirements, the goal is the same: to provide financial relief to those who dedicate their time and energy to caregiving.

Medicaid and State Programs That Pay Caregivers 

For many caregivers, knowing that Medicaid and state-funded programs offer financial support can be a huge relief. These programs are designed to help people receive care in the comfort of their homes—often from someone they know and trust. In New York, programs like PCA (Personal Care Assistant) and HHA (Home Health Aide) services are among the most commonly used to support in-home care. While other states offer similar options, the details can vary widely, so it’s important to understand how these programs work and what eligibility might look like where you live.

Medicaid Home and Community-Based Services (HCBS) Waivers

HCBS waivers allow Medicaid recipients to receive long-term care services at home or in the community instead of in a nursing facility. These waivers are part of a national effort to offer more flexible care options, and they often include provisions that allow family members to serve as paid caregivers.

In New York, these services are typically delivered through Managed Long Term Care (MLTC) plans, which coordinate care for individuals who need help with daily activities. Eligible caregivers may be able to provide personal care services through PCA or HHA programs under these plans.

It’s important to note that every state structures its HCBS waivers differently. If you’re outside of New York, check with your state’s Medicaid office or Department of Health to see which caregiver support programs are available and what their eligibility requirements are.

Consumer-Directed Personal Assistance Programs and Self-Directed Services

While the CDPAP program is being phased out in New York, the core idea behind it—consumer-directed care—continues to be important. Under self-directed services, the care recipient can choose who provides their care, including certain family members.

In New York, PCA and HHA programs now serve as the main vehicles for this kind of support. These programs allow for greater involvement from the care recipient in deciding who provides their care and when. If you are a caregiver, this means you may be able to work through an agency like Amazing Home Care to provide services as a trained personal care assistant or home health aide.

Other states also offer versions of self-directed care, but the rules around which family members can be paid—and how—vary. Some states allow spouses or legal guardians to be hired, while others do not. Always refer to your state’s Medicaid resources for the most accurate and up-to-date information.

Medicaid Cash & Counseling Programs

Cash & Counseling is a model that gives Medicaid beneficiaries a set budget for their care needs, allowing them to choose how to spend it. This includes hiring a caregiver of their choice—often a family member.

In programs like these, the care recipient works with a financial management service to help track spending and ensure that the funds are used appropriately. For families, this flexibility can be a lifeline, especially when they want to keep care within the household.

New York integrates elements of this model within its managed care approach, though the structure may look different than in other states. For those outside New York, it’s worth exploring whether your state offers a similar program to Cash & Counseling.

Veteran-Directed Care (VDC) Program

For veterans who need long-term care, the Veteran-Directed Care program offers another pathway to receive in-home services from a family caregiver. Through this program, eligible veterans are given a flexible budget and the authority to hire and supervise their caregiver—which can include a family member.

The program is coordinated through the U.S. Department of Veterans Affairs (VA) in partnership with local VA medical centers. While availability may depend on location and funding, the VDC program empowers veterans and their families to tailor care to their unique needs.

If you’re caring for a veteran, reach out to your local VA to see if this option is available and to learn about the application process.

State-Specific Medicaid Programs

Some states offer additional Medicaid-funded caregiver support programs outside of waivers or national models. These may include family caregiver support initiatives, respite programs, or other home care arrangements managed at the state level.

In New York, the Department of Health and MLTC provide oversight for many of these services, but program names and eligibility requirements can change over time. That’s why it’s essential to work with a knowledgeable home care provider like Amazing Home Care, who can guide you through the process and help determine what programs you or your loved one qualify for.

If you’re in another state, check directly with your state’s Medicaid office or visit their official website to explore your options.

Non-Medicaid State Programs for Paid Family Caregivers

While Medicaid offers some of the most robust support for family caregivers, it’s not the only option. Several states have created non-Medicaid programs that provide financial assistance to caregivers—often through stipends, grants, or paid family leave. These programs can be a valuable resource, especially for those who may not qualify for Medicaid or who need additional support outside traditional healthcare channels.

State-Funded Caregiver Support Programs

Non-Medicaid caregiver support programs are typically administered through a state’s Department of Aging or similar agency. These programs often provide stipends, training, counseling, or respite care to support family caregivers in their role.

For example, New York’s Expanded In-Home Services for the Elderly Program (EISEP) offers non-medical services and support to older adults who need help living independently. In some counties, EISEP funds may be used to support informal caregivers directly or to arrange for in-home aide services through local agencies.

Other states have developed similar initiatives. California, for instance, offers family caregiver support through its Caregiver Resource Centers, while programs in states like Hawaii and Arizona provide stipends or assistance to qualifying family members. The availability, eligibility criteria, and services offered vary widely—so it’s essential to check with your local Area Agency on Aging for the most accurate information.

Paid Family Leave Programs

Some states also provide paid family leave benefits, allowing caregivers to take time off work to care for a loved one while still receiving a portion of their income. These programs are separate from Medicaid and are typically funded through payroll taxes.

New York’s Paid Family Leave program, for instance, allows eligible workers to take time off to care for a seriously ill family member. Caregivers must work for a private employer and meet specific employment duration requirements to qualify. The application process includes submitting documentation from a healthcare provider confirming the need for care.

Other states with similar programs include California, New Jersey, Rhode Island, Connecticut, Massachusetts, and Washington. Each has its own rules for eligibility, benefit duration, and payment structure, so caregivers should review their state’s Department of Labor or paid leave website for details.

Eligibility Requirements for Caregiver Payment Programs

Eligibility for caregiver payment programs depends on several factors, including who the caregiver is, the needs of the care recipient, and the state in which you live. While program requirements vary, there are some common guidelines to be aware of.

To begin with, most programs require that the caregiver be an adult family member or close friend who is providing regular, hands-on care. Some programs exclude spouses or legal guardians, while others allow them under specific conditions.

The care recipient must typically have a documented medical condition, disability, or chronic illness that requires assistance with daily activities such as bathing, dressing, eating, or mobility. A medical assessment is often part of the application process to determine the level of care needed.

Many states also consider financial criteria, including income and asset limits, when determining eligibility for certain Medicaid-funded programs. However, if you’re in New York City and working with Amazing Home Care, there are no income or financial limits to receiving services under the PCA and HHA programs. This opens the door for many families who might otherwise be excluded.

Because every state has its own rules, it’s important to check with your local Medicaid office, Area Agency on Aging, or a trusted provider like Amazing Home Care to get clear, up-to-date information about what’s available and whether you or your loved one qualify.

How to Apply for State Caregiver Payment Programs

Once you’ve determined that you or your loved one may be eligible for a caregiver payment program, the next step is applying. While the application process can vary depending on the type of program and your location, there are general steps and documentation you can prepare to make things smoother. Whether you’re applying through Medicaid or a non-Medicaid state initiative, it helps to understand the requirements upfront and know where to turn for help if you need it.

How to Become An HHA or PCA

Becoming a Home Health Aide (HHA) or Personal Care Aide (PCA) is a rewarding way to make a difference in someone’s daily life. At Amazing Home Care, we make the process as smooth and supportive as possible. Here’s how to get started:

1. Complete Your Certification: All HHAs and PCAs must complete a state-approved training and certification program. These programs cover essential skills such as patient care, safety, and communication, ensuring you’re fully prepared for the role.

2. Submit an Application: Once certified, you’ll need to complete an application with Amazing Home Care. This helps us learn more about your background, interests, and availability so we can find the right fit for you.

3. Pass a Background Check and Drug Screening: For the safety and trust of our patients, all applicants must successfully complete a background check and drug screening

4. Attend Orientation: Before being matched with a patient, you’ll attend an orientation session where we’ll walk you through our policies, expectations, and the tools and support available to you as part of our care team.

5. Get Matched with a Patient: After completing all the required steps, Amazing Home Care will pair you with a patient based on your skills, location, and preferences. We’re committed to creating positive and lasting caregiver-patient relationships.

Tips for Navigating the System

Applying for caregiver payment programs can feel overwhelming, especially when juggling daily care responsibilities. Here are a few tips to keep the process on track:

1. Stay organized: Keep all documentation in one place and make copies of anything you submit.

2. Follow up regularly: Don’t be afraid to check in on your application status.

3. Ask for help: In New York City, working with a Medicaid-approved agency like Amazing Home Care can make a big difference. Our team understands the system and can walk you through each step, from eligibility screening to paperwork and onboarding.

Support is out there—you just need the right team behind you to access it.

How to Apply for State Caregiver Payment Programs

In addition to Medicaid and state-funded programs, there are several other financial support options available to caregivers. These can help supplement income, reduce out-of-pocket expenses, and ease the overall burden of caregiving. From tax benefits to employer-provided programs, it’s worth exploring every available avenue.

Tax Credits and Deductions

The IRS offers several tax breaks that may apply to caregivers. If you support a loved one financially, you may be able to claim them as a dependent, which could make you eligible for the Credit for Other Dependents. Additionally, the Child and Dependent Care Credit may apply if you’re paying for someone to care for your loved one while you work.

Caregivers may also be able to deduct qualifying medical expenses, such as home modifications, medical supplies, and transportation for doctor’s visits. Keeping thorough records and working with a tax professional can help ensure you get the full benefit.

Supplemental Security Income (SSI) & Social Security Disability Insurance (SSDI) Benefits

SSI and SSDI are federal programs that provide financial assistance to people with disabilities. While these benefits are paid directly to the care recipient, they can indirectly support the caregiver by covering essential living and medical expenses.

In certain cases, a family caregiver can be compensated as a representative payee, managing the funds on behalf of the recipient. However, caregivers themselves typically do not receive SSI or SSDI benefits unless they have their own qualifying disability.

Grants and Nonprofit Assistance

Many national and local nonprofits offer grants, stipends, or emergency financial assistance for family caregivers. Organizations such as the Family Caregiver Alliance and ARCH National Respite Network provide funding or respite support. Some disease-specific nonprofits—like those focused on Alzheimer’s or cancer—also offer caregiver relief programs.

Availability varies by state and organization, so check with local caregiver support centers and community foundations.

Employer Benefits for Caregivers

Some employers offer paid family leave, flexible work arrangements, or caregiver assistance programs. These benefits can provide time off, emotional support, or even financial resources to help balance caregiving and work responsibilities.

Check with your HR department to learn about family leave policies, Employee Assistance Programs (EAPs), and workplace flexibility options that might be available. Even if benefits aren’t widely advertised, some companies offer informal accommodations that can make a big difference.

Accessing the Financial Support You Deserve

Caring for a loved one is a deeply meaningful role, but it shouldn’t come at the expense of your financial stability. Thankfully, there are several programs and resources designed to support family caregivers, from Medicaid-funded PCA and HHA programs in New York to non-Medicaid grants, tax benefits, and employer-sponsored leave.

Whether you’re just beginning your caregiving journey or have been providing support for years, it’s worth taking the time to explore what financial assistance you may qualify for. Each program has its own requirements, but with the right information and guidance, the process can be more manageable than you might think.

Don’t wait to get the help you deserve. Contact your state Medicaid office or local caregiver support organization to learn more about available programs in your area. And if you’re in New York City, Amazing Home Care is here to help you navigate the process and start receiving support for the vital care you’re already providing.

Get started—your time, energy, and compassion are invaluable. Now, it’s time to make sure you’re supported, too.