Costly Caregiving

Millions of people in the U.S. devote significant amounts of time, energy, and money to taking care of their elderly or disabled loved ones.  According to the RAND Corporation, the informal cost of elder care in the U.S. is more than $522 billion per year—which is paid by caregivers out of their own pockets. 

Unfortunately, Medicare does not cover any type of long-term care, and elderly loved ones do not qualify for Medicaid unless they fall below the income threshold for care.  The Legislature has yet to offer much help in this arena either.  Congress has not renewed the Older Americans Act, which provides funding for elderly services such as nutrition and transportation. 

Experts say that there is no simple solution to solving rising caregiving costs.  Reforms will require a combination of private insurance and public assistance from state and federal institutions.  Meanwhile, obtaining long-term care insurance coverage could help replace any lost income the caregiver undergoes.

See Bonnie Kraham, Bonnie Kraham: Taking Care of Loved Ones Costs Families Billions, Record Online, May 13, 2015.