Caregiving in Minnesota: What’s the Economic Value?
By: Source: AARP.org Date Posted: 2007-07-12 15:39:36.264873-04:00
Minnesotans who informally take care of their loved ones who are in need of long-term care provide $7.1 billion worth of services for free in our state, and $350 billion nationwide.
Hundreds of thousands of family members across Minnesota care for their elderly loved ones in the home creating a massive economic impact that very often goes virtually unnoticed by society.
That's according to a new AARP Public Policy Institute study titled "Valuing the Invaluable: A New Look at the Economic Value of Family Caregiving".
"Family caregivers provide the backbone of our long-term care network and we need to do a better job of supporting them and recognizing their significance," said AARP Minnesota State President Hubert H. "Skip" Humphrey, III.
AARP wants state and federal lawmakers to enact policies to better support family caregivers.
At the state level, AARP is working to educate Minnesota policy leaders about the need to support family caregivers. During the 2007 Legislative Session, AARP urged passage of a measure to allow workers who have earned sick leave to be able to take that leave to care for an aging loved one. AARP also supported a tax credit for families who are involved in caregiving. Neither provision was included in the final conference committee reports. AARP will make it a top state legislative priority for the organization next year. At the federal level, AARP supports adequate funding for the National Family Caregiver Support Program and the Lifespan Respite Care Act.
Strain on Workers
Lost time at work and reduced benefits add to the emotional and physical strain of 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 percent report major changes in their working patterns; 83 percent arrive late, leave early or take time off during the day; 41 percent report taking a leave of absence; and 37 percent 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.
Effect on Women
Most informal caregivers are women who are employed full or part-time. Nearly one-fifth of all U.S. workers are caregivers (19 percent), 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.
Share Your Story
Are you among the nearly 610,000 family caregivers in Minnesota? How has caring for your loved ones affected your life—your work, your children, your health? Please share your story by sending us an email.
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- Valuing the Invaluable: A New Look at the Economic Value of Family Caregiving
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