Incentive Payments for Independent Choices Caregivers (Arkansas)

Palco is excited to partner with the Arkansas Department of Human Services to provide workforce stabilization incentive payments to program stakeholders!


What you need to know.

The American Rescue Plan Act, Section 9817 Home and Community-Based Services (HCBS) Spending Plan, gives states the ability to issue incentives to direct support professionals to help with workforce recruitment and retention, including caregivers providing services to Independent Choices participants. This means Palco can issue an incentive payment to your caregiver. 

No action is needed on the part of the employer or workers to receive this funding.

There are two incentive payments available.

What you Need to Know



Retention Payments for Independent Choices Caregivers working between 4/1/2020 and 3/31/2022 will receive an incentive payment of $1,500.


Who is Eligible

Any active Independent Choices caregiver who worked and received payment at least once between 4/1/2020 and 3/31/2022.

How this Works

  • Palco will review payroll data between 4/1/2020 and 3/31/2022 to generate a list of Independent Choices caregivers who meet the eligibility criteria, mentioned above.
  • On May 27th, 2022, all active Independent Choices caregivers who meet the eligibility criteria will receive an incentive payment of $1500.00. No action is needed on your part.
  • This payment will be deposited into the caregiver’s bank account on file with Palco and will be taxed like all other payments issued by Palco.

Newly Hired Independent Choices Caregivers are eligible to receive a hiring bonus of $1,000.


Who is Eligible

Any Independent Choices caregiver hired by the self-directing participant/employer on or after 4/1/2022 and completes at least 30 days of employment.

How this Works

  • Palco will review enrollment data to generate a list of eligible Independent Choices caregivers with a “good to go” start date on or after 4/1/2022.
  • This incentive should assist Independent Choices participants/ designated employers with recruiting and hiring new caregivers and could help offset background check fees.
  • Palco has allocated a maximum of 1,800 hiring bonuses for eligible caregivers from now until 3/24/2024.
  • Palco will automatically issue payments to eligible Independent Choices caregivers within 90 days of their “good-to-go” start date. The “good-to-go” date is issued by Palco’s enrollment team once all enrollment tasks including background checks are completed. You do not need to contact Palco to inquire about your hiring bonus.
  • This payment will be deposited into the caregiver’s bank account on file with Palco and will be taxed like all other payments issued by Palco.


Additional Information

  • Caregivers who remain employed will be eligible to receive an additional incentive payment in 2023.
  • It is very important that Independent Choices participants / designated employers keep Palco informed of any changes in a caregiver’s employment status such as terminations and resignations.
  • Make sure you complete an Employment Separation Form and submit to Palco immediately when anything changes with a caregiver’s employment status. This will ensure the money for incentive payments goes to the caregivers who are truly employed. This also helps prevent fraud.
  • Palco cannot accommodate any special requests or changes to these incentive payments. Everyone is receiving the same incentive payment based on the same eligibility criteria mentioned above.
  • Employers are encouraged to use the information about the hiring incentive as marketing material when recruiting caregivers.

You and your caregiver work hard and we are thrilled to assist with these incentives!

*Palco is not the employer of record for any ARIC caregivers, workers are employed by the Participant or their designated surrogate.

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