Insurance For Caregivers - What You Should Know

by Anna Rose Blogger

Insurance for caregivers is a must as more people are beginning to care for their aging parents. As an insurance policyholder, it is in your best interest to have some coverage for homecare services. What many insurance companies don't realize, however, is that you may need to have both a homecare policy and an injury or malpractice insurance policy to protect yourself and your caregivers.

What are the risks faced by a Homecare Service Provider working on a per diem basis? As a caregiver, you work directly for the patient and only assist them with daily activities, including bathing, dressing, eating, taking medicine, and light housekeeping. If the patient should suffer an injury while at home or if you became ill, you will be responsible for the cost of all of the patient's medical expenses. If you are a homecare provider who works on a per diem or reimbursement basis, you will have to complete a document called a PDCA (Payment for Care facility Agreement) before you can collect income tax benefits from your employer. The document states that you have agreed to pay for the health-care costs of a named beneficiary who is in a wheelchair, a disabled person or a person suffering from a critical illness. You must also pay a non-refundable administrative fee to the province's medical health board.

When working in a home health care environment, you will need to obtain professional liability insurance. Professional liability insurance protects your caregiver or home health aide against claims made against them by a patient or a third party that are made because of negligence or malpractice committed or caused by your professional as a caregiver or home health aide. There is no legal limit on the amount of money that you can collect in case of a lawsuit. You may also want to include medical payments and prescription costs in with your medical liability insurance policy to cover any other obligations that you may have with your clients.

When searching for auto insurance rates for caregivers, you may want to compare the premiums to the levels of cover that the insurer has to offer. Many insurers will offer a level of cover for liability as well as medical expenses and auto accident damage. In addition, some insurers also offer coverage for lost wages and accidental death. If you plan to drive an elderly or disabled person around in your vehicle, you will need to consider the risk involved with providing them with assistance and driving without physical disabilities. Some providers will charge a higher rate for auto insurance rates for a caregiver who drives the vehicle.

There are several different factors which affect your health care insurance policy. One of these factors is the ratio of licensed caregivers to the number of clients in your home care service. The more licensed caregivers, the higher your premiums will be. An independent health care provider who provides home care service on an hourly basis will often get lower health care premiums than a caregiver who provides a percentage of services on a per-minute basis.

Before you decide upon a homecare startup, you should consider the financial impact of leaving a loved one alone in your home while you run your own home care business. Ask your family doctor how much Medicare or Medicaid he or she covers and then contact your state's department of insurance. Most states require a home care business to have a direct employee. A direct employee is someone who is actually employed by the home care service and therefore pays the insurance company directly.