How do you arrange payment for a relative who is caring for elderly parents?

Your parents can and should pay her as an employee. Has she given up health care and her own benefits? All of that needs taken into account.

Paying her to care 24 hours a day (which will probably happen) will be costly. Make certain that she gets 2 days off, per week.

First they would have to be on Medicaid, and further approved for care hours under a Medicaid waiver program. BUT care hours mean feeding, bathing, dressing and toileting not just "keeping them safe".

Parents need to see an Attorney who specializes in Elder Law.. If sister is caring she should be their POA for medical and financial.. Have the Atty. draw up a Caregiver agreement which means your parents will pay her from their funds for the 24/7 care she will be providing for both parents..

Don't be alarmed by the amount your sister deserves to be paid for 2 needy parents.. In my state caregivers get an average of about $15- $20 an hour..