Skip to main content

Family Care-giving Valued at $350 Billion in 2006

Family caregivers provide essential, life-sustaining and dignity-enhancing care to their loved ones every day of the year. Almost all of this care is provided for free and is unrecognized by business leaders and politicians, even though it has a very real impact on the economy. Now, a study by AARP has put a dollar figure on these care costs, and it is a whopping $350 Billion per year. The new study, Valuing the Invaluable: A New Look at the Economic Value of Family Caregiving, finds that family caregivers are the “backbone of the nation’s long-term care system” and play a vital role in providing care to adults with serious illness, chronic conditions and disabilities.

The AARP news release about the study compares the $350 Billion value of what family caregivers provide to the total spent on Medicare ($342 Billion in 2005), Medicaid ($300 Billion in 2005) and the US budget deficit ($248 Billion in FY 2006). The family care-giving value far exceeds the Medicaid expenditures of all states; sometimes by a factor of 10.
Family caregivers help delay or prevent the use of costly nursing home care and reduce pressure on both Medicaid and Medicare budgets. But, the costs to society in lost work-time, lost benefits, and health impacts on caregivers is significant. The AARP study makes it clear that we should provide support to family caregivers and expand programs that provide respite and help, including tax breaks, information and support systems.

Families and individuals must plan for their care needs as they age. The current rules of the Medicaid program make no allowance for the unpaid cost of care, but real arrangements can be made to properly compensate family care-givers. If someone in your family is providing unpaid care, consult with an Elder Law Attorney to see if a system can be put in place that will benefit your whole family.

Comments

Popular posts from this blog

WILL YOU REALLY NEED LONG TERM CARE?

By Edward H. Adamsky             “The potentially catastrophic consequences of becoming disabled and needing long-term care is arguably the gravest financial risk that older adults face” says an Urban Institute report. But, will it happen to you? And, if so, have you saved enough money to pay for it? These are the worries we all face as we age. This is a worry even for younger folks because an accident or illness could trigger the need for care at any time.             The Urban Institute report shows that even though there are 6 million older Americans who need assistance with their activities of daily living, only about 500,000 folks are actually in nursing homes. Some use paid at-home care and many rely on unpaid family care. It seems that your chances of needing and paying for expenses care are relatively low. The stated average cost in the report is $138,000 for the ...

Clifton B. Kruse, Jr., Leading Elder Law Attorney, Dies at 74

Clifton B. Kruse , Jr., a revered elder law attorney who was admired as much for his kindness and generosity to fellow practitioners as for his grasp of the law, died December 30, 2008, in Colorado Springs, Colorado. He was 74. The cause was complications from Alzheimer's disease. For many in the field, Kruse set the standard for all that an elder law attorney can and should be. One of elder law's founding fathers, he combined a gentlemanly charm, warmth and caring with one of the sharpest and most ethical of legal minds. Wrote Arizona elder law attorney Robert Fleming in a tribute , "In my third of a century of elder law practice I have never met another lawyer who managed to pull together sophistication, heartfelt empathy, intellectual rigor and courtly manner in the same fashion Clifton Kruse projected. He did it, to all appearances, effortlessly. He was a friend and mentor to many in the elder law community (I count myself among those legions)." Kruse was the e...

Only one EIN per day!

The IRS has announced that representatives (lawyers, and others like me) can only obtain one tax ID number per day from now on.  They are known as Employer Identification Numbers or EINs and they are used for trusts, estates, businesses, and other entities that need a number for tax purposes but are not a person with a Social Security Number.  The announcement did not say that individuals cannot get more than one per day, just representatives. In most cases, this won't be a problem for me.  I usually only get one at a time when an estate or trust is created and needs one. But, there have been occasions when we created two trusts or two LLCs in one day and wanted two numbers.  Now it will take another day to get them (unless I ask the client to do it for him or herself.) The stated reason was to make the system work fairer and more smoothly.  I guess a few people were gumming up the system with lots of EIN requests. I don't know who those people wer...