Medicare and Caregivers

Medicare is a federal government health insurance program primarily for people age 65 and older. It may also cover younger adults with disabilities.

There are different plans and coverage options within Medicare.

Your loved one or family member may be enrolled in Original Medicare, which includes two components: Part A for hospital insurance and Part B for medical coverage.

In this case, your loved one may also have a stand-alone Part D prescription drug plan. Some Original Medicare beneficiaries also have a supplemental insurance plan, also known as Medigap, which helps cover deductibles and other costs.

Part D and Medigap plans are administered by private companies that Medicare reimburses.

Alternatively, your friend or family member may be enrolled in a Medicare Advantage, or Part C, plan.

This option is also administered by a private company. Medicare Advantage plans must provide the same basic coverage as Original Medicare but may also bundle other benefits — such as drug coverage, vision, hearing and dental — into a single plan.

All Medicare enrollees are issued a red, white and blue Medicare card. They may also have a separate Medicare Advantage or Part D card, if they’re enrolled in these programs.

If you can’t locate these cards, you and your loved one can call the Medicare helpline together. Or, your loved one can complete a form authorizing Medicare to release information to you.

To learn more, call Medicare at 1-800-MEDICARE (1-800-633-4227).

It’s helpful to have certain information handy as you navigate your loved one’s Medicare coverage.

Many caregivers are responsible for administering medications for a loved one.

Private insurance companies approved by Medicare offer Part D plans. Monthly fees can vary, and drug costs depend on the plan you select.

Each plan has its own formulary, or a list of covered medications. This list sets the price for each drug.

If the person you care for takes specific prescription drugs, make sure to research each plan’s formulary to ensure their medications are covered.

Keep in mind that no plan covers every drug. Plan costs — including premiums, deductibles and copays — can change from year to year.

Medicare may help cover home health care and skilled nursing care for your loved one or family member.

Medicare beneficiaries must meet certain criteria in order to qualify for home health care. For example, your loved one must be homebound and receive services under a plan of care created by a doctor.

If your loved one or family member is eligible, Medicare will pay all costs for home health care services ordered by a doctor and administered by a certified home health agency.

It can be financially challenging to care for a loved one.

About 28 percent of caretakers say they have stopped saving money while another 23 percent say they’ve taken on more debt, according to a 2020 report by AARP and the National Alliance for Caregiving.

In some cases, you may be able to get paid as a family caregiver — particularly if you care for a U.S. military veteran or someone eligible for Medicaid.

There are four plans that allow U.S. veterans to pay a loved one or family member for caretaker services.

Veteran Directed Care, for example, is a program available to qualified former service members who require nursing home-level care but who want to remain in their own home or the home of a loved one.

This program is available in 37 states and gives veterans who are enrolled in the Veterans Health Administration health care system a monthly budget to pay for goods and services. This can include payment for family caregivers, such as a child, grandchild or spouse.

Medicaid also has a self-directed care option. However, coverage, eligibility and rules vary from state to state.

For example, some state programs may pay family caregivers but will not pay spouses or legal guardians. Other states won’t pay caregivers who live with the care recipient.

These Medicaid programs can go by different names, including Consumer Directed Care, Participant-Directed Services or In-Home Supportive Services.

Even if you aren’t eligible to receive compensation as a family caregiver, you may qualify for tax breaks.

To receive these tax credits, the person you care for must be a dependent. You may be able to claim your parent as a dependent if they live with you and you supply at least 50 percent of the household income.

You may qualify for a dependent care credit on your tax return if you paid someone else for caregiving services while you worked.

Or, you may qualify for a medical expenses’ deduction if you paid your loved one’s medical bills. This includes the cost of long-term care insurance.

Taking care of a loved one may feel like a full-time job — but it’s important to take care of yourself, too.

Maintaining healthy habits and utilizing available support can help reduce your stress and prevent fatigue.