Paid family caregiving in Montana runs through two state Medicaid programs and the VA system. Montana's Community First Choice (CFC) 1915(k) state plan personal care allows consumer-directed care and may permit a spouse as the paid caregiver -- confirm family-member and spousal eligibility with Montana Medicaid at 1-800-362-8312 before counting on it. For veteran families, VA programs offer the most immediate and clearly grounded path to compensating a caregiver, including a spouse.
The Program of Comprehensive Assistance for Family Caregivers pays a federally tax-free monthly stipend to designated family caregivers of eligible veterans, with no spousal exclusion. VA Aid and Attendance provides up to $2,874 per month for a married veteran with one dependent in 2026.
The Short Version
If the care recipient is a wartime veteran, VA programs are the strongest route. PCAFC pays spouses and other family members a federally tax-free monthly stipend. Veteran-Directed Care lets the veteran hire any caregiver, including a spouse, from a flexible monthly budget. Aid and Attendance adds pension income the veteran can direct toward family care.
If the care recipient qualifies for Montana's CFC state plan or the HASP waiver, consumer-directed personal care may allow a family member as the paid caregiver, including a spouse under CFC. Contact Montana Medicaid at 1-800-362-8312 to confirm eligibility and the specific rules.
If neither VA benefits nor Medicaid applies, a private personal services contract is the fallback. It must be written before care begins, at a fair-market rate, with documentation to protect against Medicaid look-back scrutiny.
What Montana Offers
Community First Choice (CFC)
Montana's Community First Choice program is a 1915(k) state plan option that provides personal care services to Medicaid-eligible individuals who need assistance with activities of daily living. CFC allows consumer direction, meaning the enrollee can choose their own personal care worker. Under CFC, family members including a spouse may be eligible to serve as the paid worker -- confirm current rules with Montana Medicaid at 1-800-362-8312, as specific eligibility conditions apply.
CFC is administered through the Montana DPHHS Senior and Long Term Care Division. The statewide contact line is 1-800-332-2272.
HASP Waiver
Montana's Habilitation and Support (HASP) waiver also provides home and community-based services, including consumer-directed personal care, for eligible adults. Whether a family member can be hired as the paid personal care worker under HASP should be confirmed with Montana Medicaid at 1-800-362-8312.
NFCSP Through Montana's Area Agencies on Aging
The National Family Caregiver Support Program channels federal Title III-E funds through DPHHS to Montana's 10 area agencies on aging, covering respite care, individual counseling, caregiver training, and supplemental services. NFCSP serves caregivers of adults age 60 or older, grandparents and relative caregivers of children under 18, and caregivers of people with Alzheimer's or related dementias at any age. NFCSP does not pay the caregiver a wage.
To connect with your local AAA, call the Montana Senior and Long Term Care line at 1-800-332-2272 or use the Eldercare Locator at eldercare.acl.gov.
The Six Pathways
Pathway 1: Montana CFC Consumer-Directed Personal Care
For Medicaid-eligible Montanans who qualify for CFC, consumer-directed personal care may allow a family member -- including a spouse -- to be hired as the paid worker. The enrollment steps:
- The care recipient contacts Montana Medicaid at 1-800-362-8312 or the DPHHS Senior and Long Term Care line at 1-800-332-2272 to begin the CFC eligibility process.
- A needs assessment determines functional and financial eligibility for CFC personal care.
- If approved for consumer direction, confirm with Montana Medicaid whether the specific family relationship -- including a spouse -- is permitted as the paid personal care worker under current rules.
- Payroll is handled through a fiscal management service, covering tax withholding and W-2 issuance.
- The family caregiver receives regular pay at the authorized rate.
Pathway 2: Montana HASP Waiver Consumer-Directed Personal Care
For adults eligible for the HASP waiver, consumer-directed personal care may allow a family member as the paid worker. Contact Montana Medicaid at 1-800-362-8312 to confirm family-member eligibility, current waiver capacity, and enrollment steps for HASP.
Pathway 3: VA Program of Comprehensive Assistance for Family Caregivers (PCAFC)
The Program of Comprehensive Assistance for Family Caregivers pays a monthly stipend to a designated Primary Family Caregiver of an eligible veteran. Spouses, adult children, parents, siblings, and other family members all qualify, with no spousal exclusion.
Eligibility requires the veteran to have a service-connected disability rating of at least 70% (single or combined) and a need for at least six months of personal care assistance. The monthly stipend is calculated from the OPM General Schedule grade 4, step 1 annual salary for the veteran's geographic locality, divided by 12, then multiplied by a care-level factor (0.625 for Level 1, 1.00 for Level 2).
The stipend is federally tax-free under 38 U.S.C. § 1720G. Primary caregivers also receive CHAMPVA health coverage (if otherwise uninsured), mental health counseling, and respite care support. Contact the Fort Harrison VA Medical Center (Helena) Caregiver Support Coordinator for current Montana locality figures and enrollment guidance.
Pathway 4: VA Veteran-Directed Care (VDC)
VA Veteran-Directed Care is the VA's self-direction program, operated jointly with the Administration for Community Living through Area Agency on Aging partnerships. The veteran receives a monthly care budget and can hire any caregiver, including a spouse, at a rate set within that budget.
VDC availability depends on whether the veteran's VAMC offers the program. Contact the Caregiver Support Coordinator at the Fort Harrison VA Medical Center to confirm current VDC enrollment in Montana. The hired family caregiver receives payroll through a Financial Management Services contractor and is issued a W-2.
Pathway 5: VA Aid and Attendance
VA Aid and Attendance is a pension enhancement for wartime veterans who need help with daily living, and for surviving spouses with similar needs.
2026 Aid and Attendance rates (effective December 1, 2025 through November 30, 2026):
- Single veteran: up to $2,424 per month
- Married veteran with one dependent: up to $2,874 per month
- Surviving spouse (no dependents): up to $1,558 per month
The net worth limit is $163,699. VA pension is subject to a 36-month look-back on asset transfers under 38 CFR 3.276 for transfers made on or after October 18, 2018.
The veteran receives the pension. Families can direct those funds toward a family caregiver through a personal arrangement or a personal services contract. Aid and Attendance has no Montana Medicaid enrollment requirement.
Pathway 6: Private Personal Services Contract
For families outside both VA and Montana Medicaid systems, a personal services contract documents and compensates caregiving work. Requirements:
- Written and signed before care begins
- Specific about services, schedule, and rate
- Priced at or below what local home care agencies charge for the same services
- Supported by ongoing service logs
Montana Medicaid applies a 60-month look-back on asset transfers. Undocumented cash payments to family members can appear as gifts and trigger a penalty period. A written contract at a fair-market rate executed before care begins provides a defensible paper trail. Confirm current Montana look-back rules with a Montana elder-law attorney.
| Pathway | Administered by | Spouse eligible? | Typical monthly value | Key requirement |
|---|---|---|---|---|
| CFC consumer-directed personal care | Montana DPHHS / Medicaid | May be allowed; confirm at 1-800-362-8312 | Authorized hours x attendant rate | CFC financial and functional eligibility |
| HASP waiver consumer-directed care | Montana DPHHS / Medicaid | Confirm with Medicaid at 1-800-362-8312 | Authorized hours x attendant rate | HASP waiver eligibility |
| VA PCAFC | VA (federal) | Yes | Varies by locality; tax-free | 70%+ service-connected disability |
| VA Veteran-Directed Care | VA + AAA | Yes | Monthly budget set by VA team | VAMC VDC availability |
| VA Aid and Attendance | VA (federal) | Veteran pays family member | Up to $2,874/mo (married veteran) | Wartime service; net worth under $163,699 |
| Personal Services Contract | Private | Not recommended for Medicaid planning | Negotiated rate | Written contract before care begins |
How to Choose
Veteran household: If the veteran has a 70%+ service-connected rating and needs daily personal care, start with PCAFC. The stipend is tax-free, spouses qualify, and the primary caregiver also receives health coverage. Layer Aid and Attendance pension on top if the veteran qualifies for both. Ask the Fort Harrison VAMC Caregiver Support Coordinator about Veteran-Directed Care as a flexible supplement.
Non-veteran Medicaid household: Call Montana Medicaid at 1-800-362-8312 to confirm CFC or HASP waiver eligibility and whether the specific family relationship -- including spousal care under CFC -- is permitted.
Private-pay household: A personal services contract is the right structure for families outside both systems. Involve a Montana elder-law attorney if the care recipient might apply for Montana Medicaid within the next five years.
Not sure which pathway fits? Brevy's care navigator can help you work through Montana's options. Chat at brevy.com.
IRS Notice 2014-7 and Taxes
If Montana Medicaid CFC or the HASP waiver authorizes payments to a live-in family caregiver, those payments may qualify for the IRS Notice 2014-7 difficulty-of-care income exclusion. When the caregiver and care recipient share a household and the payments come from a qualifying Medicaid program, the income may be excludable from federal gross income. Families should verify with a tax professional whether the specific Montana program and living arrangement qualify.
PCAFC stipends are excluded from federal gross income under 38 U.S.C. § 1720G and are not reported on a W-2.
Personal services contract income is ordinary taxable income.
Common Misconceptions
"CFC automatically allows any family member as the paid caregiver." Consumer direction under CFC may allow family members including a spouse, but specific eligibility conditions must be confirmed with Montana Medicaid at 1-800-362-8312. Do not assume without verification.
"Medicare pays for ongoing personal care." Medicare does not cover long-term personal care or custodial care. It covers short-stay post-hospital skilled nursing and home health for homebound patients with a skilled need. Montana Medicaid and VA programs are the routes for ongoing ADL support.
"A verbal arrangement is enough for Medicaid purposes." Montana's 60-month look-back treats undocumented payments as potential gifts. A written contract, executed before care begins and priced at a fair-market rate, differentiates legitimate compensation from a transfer that could trigger a penalty.
Frequently Asked Questions
Possibly, through consumer-directed personal care under Montana's CFC program or HASP waiver, if your parent qualifies for Medicaid LTSS. Family members may be eligible as paid workers, but rules vary. Confirm current rules with Montana Medicaid at 1-800-362-8312. If your parent is a veteran, PCAFC and Veteran-Directed Care are often the more direct route.
Under Montana's CFC program, family members including a spouse may be eligible to serve as the paid personal care worker. Confirm current rules with Montana Medicaid at 1-800-362-8312, as specific conditions apply. For veteran households, PCAFC and VA Veteran-Directed Care both permit spouses to be paid without restriction.
The 2026 VA Aid and Attendance rate for a veteran with one dependent is $2,874 per month (effective December 1, 2025 through November 30, 2026). For a single veteran, the rate is $2,424 per month. Surviving spouses with no dependents can receive up to $1,558 per month.
No. The PCAFC monthly stipend is excluded from federal gross income under 38 U.S.C. § 1720G and is not reported on a W-2. Wages paid through state Medicaid programs are generally subject to payroll taxes and federal income tax, though the IRS Notice 2014-7 exclusion may apply for qualifying live-in arrangements.
Learn More
- How to Get Paid as a Family Caregiver in Washington
- VA Aid and Attendance in Montana
- Caregiver Burnout: Signs and Support
- Medicaid Planning Strategies
Find personalized help choosing the right Montana paid-caregiver pathway at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.