AARP Backs Legislation to Support Family Caregivers

AARP is supporting bipartisan legislation on Capitol Hill that could provide some financial relief to the growing number of adults who care for aging parents.

The Lowering Costs for Caregivers Act was introduced May 1 by U.S. Sens. Jacky Rosen (D-Nev.) and Bill Cassidy (R-L.A.). It would allow caregivers to use their tax-free flexible spending or health savings accounts (FSAs and HSAs) to pay for qualified medical expenses of their parent or parent-in-law.

Under existing law, FSAs and HSAs can be used only to pay for one's own medical expenses or those of a spouse or for expenses incurred by dependents claimed on their taxes. The proposed bill would broaden that eligibility to include parents and parents-in-law, regardless of whether they are claimed as dependents.

Nancy LeaMond, AARP chief advocacy and engagement officer, said in a letter to the bill's sponsors on May 1, that the bipartisan legislation would help alleviate the financial challenges that millions of family caregivers experience every day, especially those in the “sandwich generation” who are caring for their parents and their own children.​

“Allowing caregivers to use the hard-earned dollars they have saved for health expenses to care for their parents is not only the right approach from a fiscal perspective, it reflects our cherished American values of family and self-reliance,” LeaMond wrote.

People taking care of a loved one spend an average of more than $7,200 a year out of their own pocket on caregiving, an AARP survey found.

In January, Representatives Vern Buchanan (R-FL) and Mike Thompson (D-CA) introduced companion legislation to the Senate bill.

Advocating for caregiving

AARP has long fought for laws and policies that would offer more support to the nation’s over 48 million family caregivers. Family caregivers provide an estimated $600 billion in unpaid labor each year. They help with everything from meals and medical care to bathing, dressing, providing transportation and more.

AARP is also supporting bipartisan legislation that would provide a federal tax credit of up to $5,000 a year to help eligible working family caregivers defray the costs of caring for a spouse or other loved one with long-term needs. The Credit for Caregiving Act was reintroduced in Congress in March. AARP is also seeking similar tax breaks at the state level, such as one proposed in Illinois, which would give eligible caregivers a non-refundable tax credit for expenses like home care aides and home modifications.

AARP also offers support and information for family caregivers as they navigate those responsibilities, including our financial caregiving guide. Learn more about AARP's resources for family caregivers.