Value of Family Caregiving Hits $375 Billion

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.