All 11 Pathways
    Caregiver Compensation

    Structured Family Caregiving: How It Works

    Structured Family Caregiving (SFC) is a Medicaid program that pays a tax-free daily stipend to live-in family caregivers. Unlike hourly consumer-directed programs, SFC uses a flat daily rate based on care complexity — no timesheets required. Available in 12 confirmed states as of 2026, SFC offers up to ~$2,000/month and qualifies as tax-free income under IRS Notice 2014-7.

    12 states

    Pathway 2 — Key Details

    What it isMedicaid program paying a tax-free daily stipend to a live-in family caregiver. No hourly timesheets — flat daily rate based on care complexity. Agency oversees monthly.
    States (2026) — 12 confirmedCT (Adult Family Living), GA, IN, LA (Monitored In-Home Caregiving), MA (Adult Foster Care), MO, NV (Alzheimer's only), NC (Coordinated Caregiving), ND (Family Personal Care), OH (PASSPORT, Ohio Home Care, MyCare), RI (RIte@Home), SD.
    Caregiver daily pay$40–$70/day typically (50–65% of agency rate). SD agency top rate: ~$113/day; MO agency rate: ~$103/day (eff. 7/1/25).
    Monthly potentialUp to ~$2,000/month depending on state and care tier
    Tax treatment✅ Tax-free under IRS Notice 2014-7 (difficulty of care) — a major advantage over hourly programs
    Live-in requiredYes — caregiver and care recipient must share the same home
    Spouses allowed⚠️ Indiana: yes. Most other SFC states: no — verify with your specific state program
    How to enrollThrough a state-approved SFC agency — Careforth and FreedomCare are the largest national providers

    Available in 12 States

    Structured Family Caregiving is currently available in 12 states. Key programs include home-based care for seniors, people with disabilities, and sometimes special waivers for Alzheimer's.

    ConnecticutAdult Family Living
    Georgia
    Indiana
    LouisianaMonitored In-Home Caregiving
    MassachusettsAdult Foster Care
    Missouri
    NevadaAlzheimer's only
    North CarolinaCoordinated Caregiving
    North DakotaFamily Personal Care
    OhioPASSPORT, Ohio Home Care, MyCare
    Rhode IslandRIte@Home
    South Dakota

    Eligibility: What to Expect & How to Prepare

    To verify eligibility for Structured Family Caregiving, a case manager or state-contracted agency will conduct a multi-part assessment. They aren't just checking boxes — they are looking for proof that the care recipient truly needs a nursing-home level of care and that the caregiver is capable of providing it.

    The goal is to determine if the person requires assistance with at least 3 Activities of Daily Living (ADLs).

    • "Can you bathe, dress, eat, or use the restroom independently, or do you need someone to physically help you?"

      Checks for ADL impairments — the core eligibility criterion.

    • "Do you have a history of falls or wandering?"

      Checks for supervision needs beyond basic ADL assistance.

    • "What are your current medical diagnoses?"

      You will need to provide medical records from a primary physician.

    • "Are you already enrolled in a specific Medicaid waiver?"

      e.g., PASSPORT in Ohio, CCSP in Georgia, or the Health and Wellness Waiver in Indiana.

    The "Structured" part of the program refers to the caregiver's role as the primary, full-time support system.

    • "Do you live full-time in the same private residence as the person receiving care?"

      SFC requires shared residency — this is non-negotiable.

    • "Do you have any other employment or attend school outside the home?"

      In most SFC states (like Georgia and Indiana), the caregiver must make this their primary focus and cannot have another job.

    • "What is your relationship to the patient?"

      Verifies if you are a spouse, adult child, or another relative. Rules on spouses vary by state.

    • "Are you physically and mentally capable of performing tasks like lifting or transferring?"

      Ensures the caregiver can safely provide hands-on care.

    SFC requires ongoing accountability — daily tracking, monthly oversight, and a clean background.

    • "Are you willing to submit daily electronic care notes?"

      SFC requires daily tracking of the recipient's health and activities to justify the stipend.

    • "Are you willing to participate in monthly coaching and home visits?"

      Regular oversight from a nurse or health coach is a mandatory part of the program.

    • "Will you pass a criminal background check?"

      This is non-negotiable for all paid family caregivers.

    Documents for the Care Recipient

    • Government-issued photo ID, Social Security card, and birth certificate
    • Medicaid award letter or active Medicaid ID number
    • Recent medical records (History & Physical) from their primary physician
    • Formal diagnosis or disability documentation
    • Current list of all medications
    • Last 3 months of bank statements and proof of income (e.g., Social Security or pension letters) to verify ongoing Medicaid eligibility

    Documents for the Caregiver

    • Government-issued photo ID and Social Security card
    • Utility bill, lease, or mortgage statement showing you live at the same address as the care recipient
    • Authorization for a criminal background check (fingerprints may be required)
    • Proof of TB (Tuberculosis) test — required in some states (e.g., Indiana)
    • Marriage certificate or guardianship papers if applicable

    Pro Tips

    • When describing the care recipient's needs, focus on their "worst days." Eligibility is based on what they cannot do safely on their own — detailing the specific help they need with bathing, mobility, or medication management is critical.
    • Keep a "Care Log" for one week before your assessment. Note every time you help with bathing, medications, or moving around. Having this specific data makes it much easier to answer the assessment questions accurately.
    • Having these documents ready can speed up the application process from several months to as little as 30 days.

    Frequently Asked Questions

    Structured Family Caregiving is a Medicaid program that pays a tax-free daily stipend to a family caregiver who lives with the person receiving care. It uses a flat daily rate based on care needs, with no hourly timesheets, and an agency checks in monthly.

    Caregivers typically receive $40 to $70 a day, or about 50% to 65% of the agency rate. That can add up to about $2,000 a month depending on the state and care level.

    As of 2026, 12 states are confirmed: CT, GA, IN, LA, MA, MO, NV (Alzheimer's only), NC, ND, OH, RI and SD.

    In Indiana, yes. Most other states with Structured Family Caregiving do not allow spouses, so check with your state's program.

    Under IRS Notice 2014-7, these payments are excluded from federal income tax as difficulty of care payments when the caregiver and the person receiving care share a home. State tax treatment varies.

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