The Medicaid waiver payments are payments under a Medicaid waiver program to an individual care provider who performs certain services, such as meal preparation, laundry, and personal care services, for an eligible person, enabling this individual who otherwise would require care in a hospital or nursing facility to receive care in the care provider's home.

So, it is important to point out that (1) the provider must live with the service recipient in the same household (see IRS Notice 2014-7), and (2) the services must be authorized through a Medicaid Home and Community-Based Services Waiver program administered by either a state or a certified Medicaid provider.