H.R. 8490: Social Security Caregiver Credit Act of 2026

The Social Security Caregiver Credit Act of 2026 aims to amend the Social Security Act to provide credit to individuals who serve as caregivers for dependent relatives. Here are the key components of the bill:

Purpose

The bill recognizes the essential role of caregivers in family and community life, particularly for children, the elderly, and those with disabilities. It seeks to offer economic support and retirement security to unpaid caregivers through the establishment of deemed wages based on their caregiving service.

Definitions

• Qualifying Month: A month in which the caregiver provides at least 80 hours of care to a dependent relative without monetary compensation. However, it does not apply once the caregiver reaches retirement age.
• Dependent Relative: This term includes a range of family members who need care, such as children under 12, and other relatives who are chronically dependent. A "chronically dependent individual" is someone who requires daily assistance with essential activities like feeding, bathing, and managing finances.

Deemed Wages for Caregivers

The bill states that for the purpose of calculating Social Security benefits, individuals serving as caregivers will be deemed to have earned wages during qualifying months. The deemed wages would be calculated as follows:

• If no actual wages were earned in a month, the caregiver would be credited with 50% of the national average wage index for the second calendar year before the month in question.
• If actual wages were earned, the deemed wage would be the difference between the 50% of the average wage index and half of the actual earnings.
• Up to 60 qualifying months can be counted for this credit, and caregivers can receive this deemed wage credit for up to five years of service.

Implementation and Regulation

The bill requires the Commissioner of Social Security to establish regulations within one year of enactment. These regulations would include requirements to prevent fraud and abuse and outline the necessary procedures for caregivers to apply for these benefits. Caregivers must provide documentation that confirms their caregiving for a dependent relative.

Application Requirements

Caregivers who wish to claim deemed wages must submit an application that includes:

• The identity of the dependent relative cared for,
• Documentation from a physician if the dependent is not a child under 12, and
• Any additional information required by the Commissioner.

Conforming Amendments

The bill also includes amendments to existing provisions in the Social Security Act to incorporate these new caregiving credits.

Relevant Companies

• UNH (UnitedHealth Group): As a major healthcare provider, changes in caregiver assistance and related services could impact their operations and reimbursement models.
• HUM (Humana): Similar to UnitedHealth, Humana’s business could be affected as caregivers might influence the demand for home healthcare services.