Receiving quality care is an important part of home health and independent aging. Determining how to receive care, through an agency or a private caregiver, can be confusing. This article will go over pricing and the major differences between agency and independent caregivers.
Pricing
One of the first questions people have in regards to caregivers is the price difference. The bottom line is that private caregivers are generally cheaper than agency caregivers. Although this sounds like a major selling point, keep in mind the additional duties you pay the agency for that you will now be doing yourself. Some of these responsibilities include the hiring process, background checks, managing the caregiver, and maintaining the payroll. There are companies that can assist in managing payroll but other duties will still fall on the individual.
Types of Care
Both agency and independent caregivers offer a wide range of services, both medical and non-medical. Although both are available, it is more common to find a medically certified caregiver through an agency. This is partially due to the additional liability and training associated with medical care. Non-medical care can be limited by agency rules and having an independent caregiver may provide a wider range of services. The quality of care is solely reliant on the individual providing care. It is worth noting that the process for finding a new caregiver is simplified with agency caregivers. With an agency one can simply request for a new caregiver, if it is an independent caregiver the family will have to go through the hiring process again.
Legality and Taxes
Paying for an independent caregiver is not illegal but paying under the table is. It is now required by the IRS to hire independent caregivers as employees rather than independent contractors. There are third party companies that help ensure independent caregivers are being hired legally and processed correctly. These companies also help educate families on when payments can be tax deductible. This process is handled fully by agencies for their caregivers.
Quality care is the most important part of having a caregiver. Both routes, independent and agency caregivers, yield the well needed care your loved one needs. Finding what works for your family and providing the wellness necessary for independent aging and a good quality of life is vital to the caregiving process.
See a quick Pros/Cons breakdown below:
| Independent Caregivers | Agency Caregivers | |
| Pros | • Less expensive. • Can provide a broader range of support services • Families can be more selective about the caregivers | • Perform caregiver background checks • Have professional liability insurance • Offer backup caregivers when primary caregiver cannot work • Easy to locate and hire a home care agency • Agency manages payroll |
| Cons | • Families have to conduct caregiver background checks • Generally caregivers don’t have professional liability insurance • No back-up caregivers for sick days • Can be challenging to locate, hire and train • Families must manage payroll & withholdings | • More expensive • Generally provide a limited range of support services • Caregivers limited to those the home care agency has on staff |
