Millions of Americans are providing caregiving services to loved ones on a daily basis.  Although most take joy in providing this care, they are not paid for these services.  AARP completed a study, Valuing the Invaluable:  A New Look at the Economic Value of Family Caregiving.  The study found that in fact, caregivers may be unaware that the combined economic value of their contributions has been estimated at $350 billion in 2006.

To put $350 billion dollars into perspective, it can be compared to:

• As much as the total spending for the Medicare program ($342 billion in 2005).
   

• More than total spending for Medicaid, including both medical and long-term care ($300 billion in 2005).
   
• More than $1,000 for every person in the United States (301 million people in March 2007).
   

• More than the amount of the U.S. budget deficit ($248 billion in FY 2006).

Perhaps this is why family caregivers are being called the backbone of the nation’s long-term care system.  They delay or prevent altogether the expense of nursing home care and in turn, take the pressure off Medicare and Medicaid funds.

Society is now recognizing that relief in these areas is offset by cost to the caregiver and productivity losses to U.S. businesses.  The study highlights the following facts about caregiving:

• Caregivers often experience serious economic losses due to changes in work patterns, including lost wages, loss of health insurance and other job benefits, and lower retirement savings and Social Security benefits.
   

• Almost one fifth of workers (19%) are informal caregivers.  Productivity losses to U.S. businesses related to informal caregiving are estimated to be as high as $33.6 billion per year, more than half the value of all productivity losses due to common pain conditions, such as arthritis, headache, and back conditions.
   

• Caregivers who estimated expenses said they spend an average of $2,400 per year out-of-pocket to help care recipients.  Caregivers with the greatest levels of burden report spending much more ($3,888 per year)
   

• Caregivers’ own health may be placed at risk.  They are more likely to have chronic health conditions and medical bill problems or medical debt than noncaregivers.
   

• Family caregiving helps delay or prevent the use of nursing home care, with important implications for Medicaid budgets.  In addition, caregiving by adult children reduces the likelihood that beneficiaries will have Medicare expenditures for skilled nursing home and home health care.

The study stresses the necessity of preventing caregivers from becoming overwhelmed from both a monetary and ethical standpoint.  It recommends increased funding for expansion of programs already put in place, such as the National Family Caregiver Support Program, which works to support caregivers through the local area agencies on aging and The Lifespan Respite Care Act of 2006, which includes coordinating accessible, community-based respite care services for family caregivers.  The study also suggests a possible tax credit for caregiving that would offset the related out-of-pocket expenses for the caregiver.

The study concludes that providing better supports for family caregivers is essential to the well-being of our health care system, our long-term care system, and our economy.  AARP promotes “family friendly” workplace policies to help balance both work and family obligations.  The AARP study drives home the point that sacrificing work for caregiving responsibilities will have a detrimental effect for both caregivers and businesses.  

The Caring Workplace Program is a prime example of what U.S. businesses are doing to help support family caregivers.  As more employees take advantage of programs like this, the probability of becoming overwhelmed with caregiving responsibilities decreases.  In light of the study’s findings, businesses and legislators are on the right track.

If you would like to learn more about what Caring Workplace can do for you, please contact your ElderCare Specialist at 314-802-5106 or email  hobrien@standrews1.com.