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To answer your question directly, yes, it is lawful for a health care agency to hire you, and then pay you to take care of your own daughter, assuming the care is medically necessary (which it certainly sounds like it is). From the heath insurer's perspective, they are going to be paying for the care either way, whether it is you or someone else. So, the question here is whether the care is medically necessary. Assuming it is, the health care agency can hire whomever they want to provide the care and still be paid by insurance/Medicare.