Can I Be Paid for Helping My Parents? – Michigan Medicaid BEM 405

Yes. The Michigan law of contracts will recognize an oral contract for services.  However the Michigan Medicaid policy violates the law by requiring a written contract when relatives assist a client.  Relatives means  anyone related to the client by blood, marriage or adoption. The Michigan Medicaid program discourages relatives from helping clients by requiring a written contract so complex that the client would have to hire a lawyer to write it out. According to Medicaid policy ridges Eligibility Manual policy item 405, pages 7-9. (1-1-2026 revision). The “personal care contract” must meet all of the following:

  • The written contract must be signed by both parent and the family member who will provide the service.
  • It must be signed and notarized before services are provided.
  • The services must have been recommended by the client’s doctor as necessary to prevent the client’s transfer to a nursing home or “residential care facility;”
  • The contract must specify “the type, frequency and duration of such services”
  • The client must sign the contract. The client cannot authorize another person to sign it for her/him

In addition to the above we recommend a written log of services provided by date. And note that the services must assistance with “activities of daily living” often referred to as “ADLs.”  You can find more information about ADLs at the Cleveland Clinic website here

Note that it is simply a good idea to have a written agreement and keep good records of what assistence was provided, when and how long it took.

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