Significant Change in State’s Position on Caretaker Agreements

At a meeting of Medicaid supervisors last week, a major change in the Medicaid law was adopted:


Payments by applicant for care and services provided by a child were initially discussed in Post 17 under the theory that such payments by an applicant are reasonable. Medicaid allowed payments by a parent to a child in the amount of approximately $13,000 in a case that I submitted. Justification for payment for such services was provided.

Subsequently, the State took a restrictive position and limited the payments pursuant to a Caretaker Agreement to the amount received by a nurse’s aide, which generally approximates to $10 per hour.

The State now has reconsidered its position and will revert to its prior stance on Caretaker Agreements that the amount reimbursed to a child can exceed its prior limitation and allow payments by the applicant to the child that are “reasonable” with respect to such services.

This is a major change in position and allows significant savings if the payments to the child are justifiable.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.


© May 2010, Post 80(2)