BackIn-Home Personal Care: You Get What You Pay For!
Article submitted by Brenda Head, AAA Warman Home Care.
For more information, she can be reached at 1-888-243-6602.
As the population of elderly in the U.S. continues to grow an ever increasing number of individuals are in need of care to allow them to remain in their home. Much of this care addresses needs such as assistance getting around, meal preparation, bathing and hygiene issues, light housekeeping, personal grooming, errands, etc. These types of services are provided by private duty home care companies.
Although they may all purport to provide the same services, they often accomplish this in very different ways. The two most common forms of service delivery are employer-based and non-employer based (commonly called a registry). It is important when you need assistance at home, you know the difference. Most of us ask immediately, "What do you charge?" When you see a difference in the rates each company charges, make sure you are aware of what you are buying, and why the rates may vary. Here are some questions you should ask.
Do you employ your caregivers?
Not all companies employ their caregivers. These companies, known as registries, simply act as an agency, whereby they refer an independent contractor to care for you or your loved one. You, the client, pay a fee to the caregiver and another fee to the company for sending the caregiver.
Do you provide Worker's Compensation Insurance
A Registry does not employ the caregiver. Since the caregiver is not employed, they do not have Worker's Compensation Insurance. Should the caregiver become injured in your home, you could be liable for lost wages and medical care costs resulting from the injury. Many companies who utilize independent contractors will tell you that if this occurs, your homeowners insurance will cover any injury to the caregiver. You should check with your insurance carrier, since many homeowner insurance policies specifically exclude this coverage.
"We are bonded and insured" What does this mean?
Most companies have a surety bond in the event of theft. When a company tells you "we are insured", it generally means the company has operational insurance against caregiver theft, it may not indicate that the caregivers' services are covered by liability insurance.
Do you provide Professional Liability Insurance?
Professional Liability Insurance covers injuries to the client/patient caused by the caregiver. A Registry does not provide Professional Liability Insurance for caregivers since they are not their employee. Some Registries require their independent contractors to purchase their own liability insurance. Most caregivers, however, cannot afford coverage.
What about Federal and State Payroll Taxes?
When you hire an independent contractor from a Registry, you potentially become their employer. As the employer, you become responsible for all employer related taxes including Social Security, Federal and State Unemployment and Federal and State withholdings for the caregiver.
The Romans first said, "Caveat Emptor", ..."Let the Buyer Beware".
When it comes to choosing a home care provider, an educated consumer will be most successful by knowing what you get for what you are paying for.