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Caretaker Contracts and Salary to Family Members

In the MassHealth Appeal decision 1200340, MassHealth determined that the rate of pay to family members under the caretaker contract was excessive but contrary to MassHealth argument, the care provided by the family member did have fair market value.

The family prior to entering the caretaker contract obtained quotes from three caregiving services, which each quoted a cost of $25/hour.  Therefore it was agreed that the mother would pay her son and daughter-in-law $25/hour for their services.  The son and daughter-in-law failed to keep an hourly log detailing their care. However, they testified that they cared for the mother over 4 hour each day, which the hearing officer found credible considering mother’s advanced Parkinsons.  MassHealth argued that the care provided had no fair market value and therefore the money paid was a disqualifying transfer.

The hearing officer ruled that the mother did receive value for the services rendered, but not at a rate of $25/hour.  The hearing officer used the wage rate for personal care attendants under MassHealth’s PCA program which was $12/hour.

If you are interested in entering a personal care contract, please feel free to contact us.

To read the full decision click: MassHealth Appeal 1200340 re: Caretaker Contract

Margaret L. Cross-Beliveau, Esq., LL.M.

Beliveau Law Group: Massachusetts | Florida | New Hampshire

The estate planning attorneys at the Beliveau Law Group provides legal services for estate and asset protection planning. The law firm has offices and attorneys in Naples, Florida; Boca Raton, Florida; Danvers, Massachusetts; Waltham, Massachusetts; Quincy, Massachusetts; Manchester, New Hampshire and Salem, New Hampshire.

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