Economic Value of Family Caregiving in Virginia Reaches $27 Billion Annually, New AARP Report Shows

Virginia’s family caregivers now provide $27 billion worth of labor each year, according to a new AARP report. Most of this work is unpaid, yet it forms the backbone of the nation’s long-term care system, which is essential to helping millions of older adults live independently at home.

Why this matters: Without family caregivers, many more Virginians would rely on expensive institutional care, driving significantly higher costs for taxpayers and public programs.

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“Family caregivers are a major economic force that fills critical gaps in our health care system,” said AARP Virginia State Director Jim Dau. “The economic value they provide in the Commonwealth now exceeds $27 billion annually, yet this care often comes at a high cost to their health, financial security and well-being. AARP is elevating this important issue and fighting to save family caregivers time and money.”

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Key findings from the report – Valuing the Invaluable 2026 – include:

• 1.52 million Virginians are caregivers of adults, providing care for older parents, spouses, neighbors, and other loved ones, contributing 1.37 billion hours of care annually. This work would be valued at $27 billion per year if paid in the marketplace, based on a value of $20.01 per hour.
• The $27 billion of care provided by Virginia’s family caregivers is slightly less than the total amount that Virginia’s Medicaid program is expected to pay for all services this year, which is $27.3 billion, and exceeds the $3 billion the state has forecast it will spend on long-term care services in 2026 by 800%.

National Findings:

• Across states, the estimated value of caregiving ranges from $14.12 per hour in Louisiana to $27.05 per hour in Washington, reflecting regional differences in wages and the cost of care.
• 59 million Americans are caregivers of adults, providing care for older parents, spouses, neighbors and other loved ones, contributing 49.5 billion hours of care annually, work that would be valued at $1.01 trillion per year if paid in the marketplace, based on a value of $20.41 per hour.
• The 49.5 billion hours of care provided each year are the equivalent of nearly 24 million full-time workers, roughly 17% of the entire U.S. full-time workforce.
• The value of family caregiving exceeds total federal, state and local Medicaid spending nationwide and almost doubles all out-of-pocket health care spending.