Whether you are yourself a caregiver of your aging parents or have a hired a professional caregiver for the elderly, it poses a financial challenge that adds to the already growing list of family expenses. In the United States, nearly 48 million families provide care to keep their loved ones (with special needs) safe and independent, as per the latest 2021 study, Caregiving in the U.S. 2020, conducted by National Alliance for Caregiving (NAC) and AARP.

Finally, the American Association of Retired Persons (AARP) is going to make the life of unpaid caregivers a bit easier by providing much-needed financial assistance. Under the Credit for Caring Act, the federal tax credit of up to $5,000 will be provided to eligible working family caregivers. This financial support will help cover the entire or the majority of caregiving costs that families pay each year out of their pockets.

The New Tax Credit Can Help Offset the Costs of Elderly Care Service

As per the bill, the new nonrefundable federal tax credit can help eligible working family caregivers enjoy a 30 percent credit for qualified expenses they pay or incur above $2,000. This much-comforting credit can significantly offset the costs of Elderly Care Services, as well as home modifications, such as ramps and smart-home technology intended to make caregiving at home safer and easier.

As a result, you can feel at more ease financially when it comes to seeking the services of professional caregivers.

President Joe Bidens Plans to Support Caregiving Families

1. Increased access to Medicaid programs to make home care more affordable

Medicaid covers the entire cost of basic nursing home stays for participating families. However, when it comes to home care through Medicaid, the access is limited and varies by state. The good news is that Bidens plan will provide expanded access to the following two Medicaid programs:

. Home and Community-Based Services (HCBS) - It allows states to expand home- and community-based Medicaid services for families with individuals suffering from severe injuries, intellectual disabilities, and other debilitating conditions and help avoid nursing homes and similar facilities.

. Money Follows the Person program - Launched in 2008, this federal program helps increase HCBS options in communities. It also includes quality assurance measures and granting awards for states that want to expand their offerings.

These proposals are great news for all families with the elderly or someone with one or more disabilities as Medicaid at-home programs will make it possible for the elderly to age in their place with more confidence and comfort.

2. Better pay for caregivers and more cost-effective care for seniors

The proposal offered by Joe Biden also focuses on caregiver worker rights as paid caregivers are often underpaid or undervalued and living in poverty. At the moment, it refers to only home health aides employed by agencies and institutions that accept Medicaid. Thus, the extra funds will apparently come from the government and not the patients. Improved working conditions and the ability to join the union can potentially lead to higher quality and more affordable care for seniors on Medicaid.

3. Reduce the waiting time for Medicaid coverage

In general, families often have to wait for years to receive certain Medicaid benefits even when they qualify. However, now, by launching programs like HCBS as a part of basic care, the government can ease the wait for the elderly.

Though there is still some time to see how these changes and proposals will unfold and help caregiving families, we can certainly say that hiring paid Caregivers for Elderly will soon become a more economical and attractive option even for low-income families.