Yes, if done properly, this is typically referred to as a personal services contract.  Medicaid will permit payments to a family member pursuant to a personal services contract if the contract complies with the Medicaid rules.  This typically requires that the agreement be in writing and clearly indicates the amount of compensation and what services and care will be provided.  The compensation must be reasonable.  Also, the contract cannot be for past care given.  For example, if you’ve already been providing care to mom or dad for the past 2 years and now they need a nursing home, you cannot go in after the fact and set up a personal services contract for the past care given.