WASHINGTON — The economic value of family caregiving in the United States reached $375 billion in 2007—exceeding the $311 billion spent for Medicaid last year—according to a new report by AARP's Public Policy Institute. The new estimate reflects an increase in the U.S. population, the aging of the population and a higher estimate of the average value for one hour of care, AARP said.
The report, "Valuing the Invaluable, The Economic Value of Family Caregiving, 2008 Update," estimates that 34 million Americans provide more than 20 hours of care per week to another adult.
"Family caregivers are a vital and largely unrecognized part of America's health and long-term care system," said AARP Policy Director John Rother, noting that family caregiving has been shown to reduce hospital readmissions and delay entry into nursing homes. "We often overlook how much family and friends contribute—whether it's picking up groceries each week or providing daily health care for their loved ones."
The report notes that informal caregivers of people 50-plus spent an average of $5,531 out-of-pocket in 2007 to care for their loved ones. That spending is often coupled with lost workdays, wages, health insurance and retirement savings. More than one-third of informal caregivers are forced to quit their jobs or reduce their working hours, with women more likely to leave the labor force entirely. Caregivers also frequently struggle with health care bills and medical debt and experience chronic stress. Even less noticed is the physical, financial and emotional toll caregiving can take, Rother added.
The report makes several recommendations to assist caregivers, including adopting family-friendly workplace policies; providing caregivers with needed supports; expanding funding for the National Family Caregiver Support Program and the Lifespan Respite CareAct; and supporting family caregivers in chronic care coordination programs and care transitions.
"Family caregivers are likely to be stretched even further in today's tumultuous economy. Now is the time to ensure caregivers have the support they need. Everyone—business, government and individuals—can do more to give back to those who give so much," concluded Rother.