Hidden Caregiver Financial Resources: Financial Assistance Programs You May Not Know About
Caregiving often feels like a lonely journey, and you’re constantly searching for support that seems just out of reach. While most caregivers know about the basics like Medicare and Social Security, there’s a whole world of lesser-known, hidden financial resources and programs that could significantly improve their caregiving experience.
As someone who helps families navigate these complex systems every day, I’ve compiled this straightforward list of the hidden resources most caregivers miss. Let’s explore financial assistance and respite care options that don’t make it into most caregiving handbooks.
Financial Assistance Programs You May Not Know About
VA Aid & Attendance Benefit
What it is: A tax-free benefit that provides monthly payments to veterans and surviving spouses who need assistance with daily activities, one of the most valuable hidden caregiver financial resources available.
Why people miss it: Many assume VA benefits only apply to service-related injuries or recent military service.
The reality: This benefit is available to veterans who served at least one day during wartime (even if they were never in combat) and their surviving spouses. Furthermore, it can provide thousands of dollars monthly for a veteran and a surviving spouse.
How to access it: Contact your local Veterans Service Officer or visit the VA website. After that, be prepared for paperwork and a processing time of 6-12 months (benefits are retroactive to the application date).
PACE (Program of All-Inclusive Care for the Elderly)
What it is: A comprehensive medical and social services program that allows many seniors to continue living at home rather than in nursing facilities, a critical hidden caregiver financial resource for families.
Why people miss it: Limited availability in some geographic areas and lack of awareness among healthcare providers.
The reality: PACE covers all Medicare and Medicaid services, plus additional services the PACE team determines necessary. This can include adult day care, meals, transportation, and home care.
How to access it: Check if there’s a PACE program in your area by visiting the National PACE Association website or calling 1-800-MEDICARE.
State Pharmaceutical Assistance Programs (SPAPs)
What it is: State-run programs that help pay for prescription drugs, often filling gaps in Medicare Part D coverage.
Why people miss it: Unfortunately, programs vary widely by state and aren’t widely advertised.
The reality: Overall, these programs can significantly reduce prescription costs, especially for those in the Medicare Part D “donut hole.”
How to access it: Contact your State’s Health Insurance Assistance Program (SHIP) or visit your state’s Department of Aging website.
National Family Caregiver Support Program
What it is: A program that provides grants to states to fund various supports for family caregivers.
Why people miss it: Services are administered locally and vary widely.
The reality: Thankfully, this program can provide counseling, support groups, training, respite care, and supplemental services.
How to access it: Contact your local Area Agency on Aging to take advantage of this.
Hidden Caregiver Financial Resources: Respite Care Options Beyond the Basics
Adult Day Services Financial Assistance Programs
What it is: Financial assistance specifically for adult day services, which provide care and companionship in a group setting during daytime hours.
Why people miss it: Many caregivers only consider in-home care options when seeking financial resources.
The reality: Some adult day centers offer scholarships or sliding scale fees. Additionally, some long-term care insurance policies and VA benefits cover adult day services.
How to access it: Contact the centers directly about financial assistance options or speak with your Area Agency on Aging.
Faith-Based Respite Programs
What it is: Many religious organizations offer volunteer respite care services.
Why people miss it: These programs are often small and locally organized.
The reality: These programs can provide trained volunteers to stay with your loved one while you take a break.
How to access it: Contact local places of worship, even if you’re not a member. Interestingly, many are happy to help community members regardless of religious affiliation.
👉🏻 Read More: Solutions for Overwhelmed Caregivers
Lifespan Respite Care Programs
What it is: State-based programs that work to coordinate respite services across age and disability categories.
Why people miss it: These programs are still developing in many states.
The reality: Significantly, they can help connect caregivers to funding sources and available services.
How to access it: Contact your state’s Lifespan Respite Program or your local Area Agency on Aging.
Caregiver Cooperatives
What it is: Informal arrangements where families take turns caring for each other’s loved ones.
Why people miss it: These are typically grassroots efforts without formal organization.
The reality: These cooperatives can provide no-cost respite and valuable social connections.
How to access it: Ask local support groups or senior centers if they know of existing cooperatives, or consider starting one with other caregivers you know.
Tax Benefits Often Overlooked
Medical Expense Deductions
What it is: The ability to deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income.
Why people miss it: Many caregivers don’t realize which expenses qualify.
The reality: Potentially deductible expenses include home modifications for medical reasons, transportation to medical appointments, and certain long-term care services.
How to access it: Chiefly, consult a tax professional familiar with caregiving situations.
Dependent Care Credit
What it is: A tax credit for expenses paid for the care of a qualifying dependent while you work or look for work.
Why people miss it: Many assume this only applies to child care.
The reality: Actually, this credit can apply to adult dependents who are physically or mentally incapable of self-care.
How to access it: Speak with a tax professional and file Form 2441 with your tax return.
Dependent Exemption
What it is: The ability to claim your care recipient as a dependent on your tax return if they meet certain criteria.
Why people miss it: Complex eligibility rules discourage many from exploring this option.
The reality: Overall, this can provide significant tax savings if your care recipient qualifies.
How to Find More Hidden Caregiver Financial Resources
Overall, the challenging reality of caregiving support is that programs constantly change, and new ones develop. Explicitly, here are some strategies to stay informed about caregiver financial resources:
- Contact your local Area Agency on Aging at least once a year to ask about new programs.
- Join a caregiver support group (in-person or online) where members share resource information. The Caregiver Action Network is a good place to start.
- Work with a Daily Money Manager or Aging Life Care Professional who stays current on available programs.
- Set up Google Alerts for terms like “caregiver assistance programs” and your state name.
- Check benefits screening tools like BenefitsCheckUp.org regularly, as your loved one’s eligibility may change.
- Feeling overwhelmed by caregiver responsibilities? The Essential Resource Guide for Caregivers puts all these hidden financial resources (and many more) at your fingertips.
Final Thoughts
Altogether, finding and accessing these hidden resources often requires persistence and paperwork. So, don’t get discouraged if you don’t see immediate results from your first attempts. Ultimately, the financial and emotional relief these programs can provide makes the effort worthwhile.
Remember, you don’t have to navigate this alone. At True Assisting, we specialize in helping families identify and access the resources they need. Likewise, reach out if you’d like personalized guidance on finding the right programs for your situation.
