Reimbursement of travel expenses to care for a loved one

No, Medicaid will not reimburse travel expenses (one time nor ongoing) to care for a loved one.

It is vital that one not accept reimbursement of travel expenses from a Medicaid recipient, or anyone who is planning to apply for long-term care Medicaid, within 5 years. This is because Medicaid has a Look-Back Period (generally 60-months) immediately preceding one’s long-term care Medicaid application. During which, the Medicaid agency scrutinizes all asset transfers to ensure no assets were gifted. Unfortunately, Medicaid will treat reimbursement of travel expenses as a gift. Persons who violate Medicaid’s Look-Back Period are penalized with a period of Medicaid ineligibility. Even after one has been approved for Medicaid, gifting is still prohibited and persons can be penalized. Therefore, while it may feel natural for a parent to reimburse their adult child for traveling expenses to provide them with care, this should be avoided.

Medicaid, however, may pay a friend or family member to provide care for a loved one who is a Medicaid recipient. Frequently, it is one’s adult child who receives payment for providing personal care assistance and homemaker services, amongst other assistance. It is commonly via consumer-directed Medicaid programs that a loved one receives payment. These participant-directed programs allow a program participant to select and hire their own caregiver. More on receiving financial compensation for caring for a loved one.