Caregiving/AARP: Family Caregiving valued at
$350 billion
The productivity losses to U.S. businesses
associated with caregiving are up to $33 billion
a year
WASHINGTON, June 25 /PRNewswire-USNewswire/ -- The economic
impact of informal caregiving on the U.S.
economy is massive according to a new AARP
Public Policy Institute 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. As caregivers are
forced to take time off and work partial days to
care for their loved ones, the result is lower
wages, a lack of job security, and loss or
reduction of employment benefits like health
insurance, retirement savings, and Social
Security. And these losses come at a time when
income and benefits are critical for the
caregiver and their family.
For those with the most intense level of caregiving
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.
"We need to provide better support for family caregivers
because they
are essential to our long-term care system. For example,
adequate funding for the National Family
Caregiver Support Program and the Lifespan
Respite Care Act would cost a fraction of the
value of unpaid caregivers' contributions and
provide an excellent return on investment," said
Rother.
Most informal caregivers are women who are employed full or
part-time. Nearly one-fifth of all U.S. workers
are caregivers (19%), and the
productivity losses to U.S. businesses associated with
caregiving are
estimated to be as high as $33 billion a year.
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.
The complete study can be accessed at:
http://www.aarp.org/research/housing-mobility/caregiving/ib82_caregiving.html
