US caregivers a major economic impact
The economic impact of informal care giving on the US economy is massive according to a new American Association for Retired Persons (AARP) study – ‘Valuing the Invaluable: A New Look at the Economic Value of Family Caregiving’.
The study found that the contributions of family caregivers often go unnoticed, but in fact their contributions are the foundation of the nation’s long-term care system with an estimated economic value of $350 billion in 2006.
“Family caregivers play a vital role and are the backbone for the long-term care network in this country,” said AARP director of policy, John Rother.
“But the unpaid services they provide are not without costs. Lost time at work and reduced benefits adds to the emotional and physical strain of actually caring for a loved one.”
The AARP study showed serious economic consequences for caregivers in the work force. For those with the most intense level of care giving responsibility, 92% report major changes in their working patterns; 83% arrive late, leave early or take time off during the day; 41% report taking a leave of absence; and 37% report going from full-time to part-time to adjust for their care giving responsibilities.
Additionally, the caregiver’s own health is often at risk. They are more likely to have chronic health conditions and medical debt than non-caregivers.
The study underscores the need for better government and private sector options for long-term care. Informal caregivers help delay or prevent the use of costly nursing home care, which has positive results for Medicaid and Medicare budgets. Currently, Medicaid spends $59 billion per year on nursing home care and Medicare spends almost $22 billion.
