Date: 2/18/2016
The solution to making homecare more affordable, especially for the more physically or emotionally needy, is a major problem in all states and for the country. This is also a rapidly growing problem given the national statistics that people over 85 will likely more than double by 2025. Under current law, allowing the elderly to stay at home more affordably would require a higher Medicaid eligibility ceiling. Given the fact that Medicaid costs are currently unsustainable in all states and at the federal level, this option is not feasible without a significant increase in taxes.
Currently, elders who require non-medical homecare are being cared for by family, friends, private caregivers, or professional homecare agencies. Family and friends provide excellent help when they can, but very often additional time and expertise may be needed. Private caregivers who work for themselves are technically employees of the elderly client but are typically paid under the table and almost never report their income thus avoiding taxes. The elder does not pay matching taxes as well. This scenario is resulting in a significant tax loss at the state and federal level.
A possible solution to the problem of providing affordable homecare for the elderly would be to institute a modest tax deduction (federal and state) for the elders who pay out of pocket to professional homecare agencies contracted to provide the needed care. If private caregivers were allowed to be included, their existing large tax shortfall combined with an elder tax deduction would create a double tax problem – not the answer. The prospect of a tax deduction would also attract more elders to the legitimate homecare agencies thus reducing the private caregiver tax problem.
In summary, the elder gets more and better affordable homecare, the homecare agency pays more taxes, and the private caregivers’ tax dodging is reduced.
Our elders deserve more affordable homecare. I hope our legislators consider this proposal.
Peter Yaffe
Longmeadow
