Long Term Care insurance reimbursement and the tax man.

This question is for someone familiar with what the insurance claims/fraud department does with tax IDs.

My grandparent is helped around their house by a caregiver, grandparent pays them with checks. In order to get long term care insurance to reimburse those payments, a form identifying the caregiver must be submitted. The caregiver form info is name, address, SSN/tax id, copy of government ID

I get this is to prevent fraud and insure they’re not reimbursing claims paid out to relatives or other fraudulent schemes, all good.

Haven’t confirmed but i don’t think the caregiver reports taxes. Don’t want the caregiver to get thrown under the bus if insurance company passes the form info along to the IRS.

If that is possible would rather cut ties with caregiver even though they’re great at their job, and get someone above board that can be submitted for claim reimbursement.

Do insurance companies sit on that info for their personal fraud department or does it get shared with government agencies?