AARP: Value Of Family Caregiving Hits $375 Billion, More That Medicaid Spending, USA

Main Category: Caregivers / Homecare
Also Included In: Seniors / Aging;  Medicare / Medicaid / SCHIP
Article Date: 20 Nov 2008 - 8:00 PDT

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The economic value of family caregiving in the U.S. reached $375 billion in 2007, according to a new report by AARP's Public Policy Institute. The report, which updates a groundbreaking study by AARP last year, finds that the value of family caregiving was $375 billion, 7 percent higher than the estimated value of $350 billion in 2006.

The estimated value exceeds the $311 billion spent nationally in 2007 for Medicaid. The value of family caregiving also exceeds Medicaid's long-term care spending in every state. 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.

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, making informal caregiving a cornerstone of U.S. health and long-term care.

"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 AARP report notes that informal caregivers of people 50-plus spend 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 AARP report makes several recommendations to assist caregivers, including adopting "family friendly" workplace policies; assessing caregivers' needs and providing them with needed supports; expanding funding for the National Family Caregiver Support Program and the Lifespan Respite Care Act; and supporting family caregivers in chronic care coordination programs and care transitions.

Rother concluded: "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."

The full report, "Valuing the Invaluable: The Economic Value of Family Caregiving 2008 Update," is available here.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 33 million readers; AARP Bulletin, the go-to news source for AARP's 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, aarp.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

http://www.aarp.org