If you’re considering getting paid through Michigan’s Home Help program, you’ve probably asked yourself: will getting paid as a caregiver affect your Medicaid benefits—or your loved one’s? It’s one of the most common concerns we hear, and it’s a fair one. Here’s the direct answer: your loved one’s Medicaid benefits are not affected by you receiving caregiver pay. The payment goes to you, the caregiver—not to the care recipient. Their eligibility is calculated based on their own income and assets, not yours.

That said, there’s a second question buried in this concern: what about your benefits if you’re also on Medicaid? That answer is more nuanced, and we’ll walk through it below.

How Caregiver Pay Works in Michigan

Michigan’s Home Help program, administered by MDHHS (Michigan Department of Health and Human Services), allows Medicaid recipients who need help with daily activities to hire a caregiver of their choosing—including family members. The caregiver receives hourly Medicaid compensation for providing care that helps the recipient stay at home rather than move to a nursing facility.

All 50 states and Washington D.C. offer some form of consumer-directed Medicaid program, though the rules vary by state. In Michigan, the current rate is $17.13 per hour (as of January 1, 2026), which includes a $13.73 base rate plus a $3.40 supplement for individual caregivers.

If you’re not sure whether your situation qualifies, Mozyne offers a free eligibility check that can help you understand where you stand—no paperwork, no commitment.

Will Your Loved One Lose Their Medicaid?

No. The Home Help payment is compensation for your work. It doesn’t count as income for the person receiving care. Their Medicaid eligibility is determined by their own financial situation—not by whether a family member is being paid to care for them.

This is a critical distinction. According to Kaiser Family Foundation (KFF) research, all reporting states pay family caregivers under some circumstances through their Medicaid programs. The structure is designed so that the care recipient’s benefits remain intact while the caregiver receives fair compensation for their labor.

What About Your Own Medicaid Benefits?

This is where it gets more specific. If you’re currently on Medicaid yourself—whether through expansion, disability, or another pathway—the income you earn as a paid caregiver does count as income for your own eligibility.

That doesn’t mean you’ll automatically lose coverage. It means:

• Your caregiver income will be factored into your household income
• If your total income exceeds Michigan’s Medicaid limits, you may need to transition to Marketplace coverage or another insurance option
• If your income stays below the threshold, your Medicaid remains unaffected

The practical impact depends on how many hours you work, your other income sources, and which Medicaid category you’re enrolled in. For most family caregivers earning part-time hours through Home Help, the income doesn’t push them out of eligibility—but it’s worth reviewing your specific situation.

If you want to understand how enrollment works before committing, Mozyne can walk you through how the Home Help enrollment process works step by step.

Tax Implications You Should Know

Caregiver pay is taxable income. According to the IRS, family caregivers receiving compensation must report that income on their tax return. Depending on your arrangement, you may:

• Receive a 1099 form and need to file as self-employed income
• Be exempt from self-employment tax in certain family caregiving situations
• Owe quarterly estimated taxes if your total income is significant

The IRS notes that caregivers providing services to a family member in specific circumstances—such as caring for a spouse or a child under 21—may be exempt from employment taxes, though the compensation itself is still reportable income.

If you’re unsure how caregiver income will affect your taxes, consider consulting a tax professional who understands Medicaid-funded caregiving.

What This Means for Your Family

For most Michigan families, the Home Help program is a way to get paid for care you’re already providing—without jeopardizing anyone’s benefits. The Michigan Home Help program is legitimate, state-administered, and used by thousands of families across the state.

According to AARP, about 48 million Americans provide unpaid care to a family member, and 78% of them incur out-of-pocket costs averaging over $7,200 per year. Getting compensated through a program like Home Help doesn’t change the care you’re providing—it just removes some of the financial strain.

Next Steps

If you’re already caring for a loved one in Michigan and want to explore getting paid through the Home Help program, Mozyne can help you navigate each step. Start with a free eligibility check to see if your situation qualifies—no commitment required.

You’re already doing the work. This is about making sure you’re compensated for it.