Common Contracts
1 similar Personal Service Contract contracts
PERSONAL SERVICE CONTRACTS AFTER BARBATOPersonal Service Contract • November 9th, 2016
By The personal service contract (“PSC”) is a written agreement between a Medicaid applicant/recipient (“Medicaid A/R”) and one or more caregivers, typically relatives or close friends. Under the agreement, the caregivers agree to provide the Medicaid A/R personal and geriatric care, financial management, and related services over the statistical life expectancy of the Medicaid A/R in return for fixed compensation, often paid in a lump sum. Under New York regulatory guidance, when properly designed and executed, a PSC rebuts the presumption that services provided by family caregivers are provided out of “love and affection,” thereby providing a basis for demonstrating a fully compensated transfer of assets for fair value that is not subject to a Medicaid transfer penalty.
