Important Legal Update for Kentucky SCL & Michelle P. Waiver Families: Resolving the "Unrelated Caregiver" Living Arrangement Confusion

If you are a caregiver for an adult loved one receiving services through the Supports for Community Living (SCL) or Michelle P. Waiver (MPW), you may have recently received alarming news from case managers or agencies regarding changes to your living arrangements or Participant Directed Services (PDS) caregiver pay.

Much of the panic circulating across Kentucky stems from a recent joint policy memo issued by the Department for Medicaid Services (DMS) and the Division of Developmental and Intellectual Disabilities (DDID).

Here is what you need to know about the state's directive, the miscommunication surrounding it, and how adult adoption provides a clear legal solution to protect your family’s benefits.

The Problem: The State's "Unrelated Caregiver" Audit

Under Kentucky Administrative Regulations (907 KAR 12:010 and 907 KAR 1:835), Medicaid participants receiving SCL Personal Assistance or MPW Community Living Supports (CLS) must reside in their own residence or a family residence.

The state’s policy clarification mandates that if a waiver participant lives in a home owned or rented by an unrelated paid caregiver, that home is classified as a prohibited "provider-owned setting." Case managers have been instructed to audit all living situations by October 31 and revoke authorizations for non-compliant arrangements.

The Miscommunication

Many court-appointed legal guardians who care for adult wards in their homes have been incorrectly told that finalizing an adult adoption will jeopardize their waiver services.

In reality, the exact opposite is true: Remaining legally "unrelated" to the adult in your care is what puts your living arrangement and PDS caregiver pay at risk under the state's audit.

The Solution: How Adult Adoption Secures Your Waiver Services

Finalizing an adult adoption directly resolves the state's compliance issue:

1. Establishes Legal Parentage: Adoption legally shifts your relationship from an "unrelated caregiver" to a recognized parent under Kentucky law.

2. Reclassifies the Home: Establishing legal parentage automatically converts your home into an authorized "family residence" under Medicaid guidelines.

3. Protects Waiver Services: Securing family residence status ensures your loved one retains their authorized Personal Assistance or CLS hours and protects your eligibility as a paid PDS caregiver past the October 31 deadline.

Protect Your Family's Services Today

If your agency or case manager has raised concerns about your living setup or PDS caregiving status, you do not have to navigate this system alone. Turner-Barrett Law PLLC is actively assisting families across Kentucky in completing adult adoptions to ensure compliance with state Medicaid regulations while establishing permanent family bonds.

Contact our office today to schedule a consultation:

• Phone: (859) 308-6007

• Email: contact@turnerbarrettlaw.com

• Office: 200 E. Mt. Vernon St., STE 2, Somerset, KY 42502

Disclaimer: THIS IS AN ADVERTISEMENT. The information provided on this website is intended for general informational purposes only and does not constitute legal advice. Viewing this information or contacting Turner-Barrett Law PLLC does not create an attorney-client relationship. Every family’s legal and financial situation is unique, and prior results do not guarantee a similar outcome. Please consult a qualified attorney regarding your specific situation before taking legal action.