A new report from the AARP Public Policy Institute reveals that approximately 59 million Americans provide care for family members, neighbors, or friends, reflecting an annual economic value of $1.01 trillion. The report, released in 2024, highlights the substantial efforts made by these individuals, which are estimated to amount to around 49.5 billion hours of care each year.
The data shows that most of these caregivers provide long-term services, often unpaid. The average hourly value of this work was estimated at $20.41 in 2024. These tasks include basic adult care, such as medication management, coordinating care appointments, and assisting individuals with daily needs like bathing, dressing, and handling insurance claims.
Event Details
Meisha Minter-Jordan, the CEO of the AARP, stated during a press conference regarding the research that many caregivers perform these tasks while working, raising children, and trying to survive financially and emotionally. She noted that the economic value of family caregiving exceeds $932 billion of total federal, state, and local Medicaid spending, and $557 billion of out-of-pocket health spending by families.
This is the seventh report issued by the association on the costs of caregiving. The first report in 2006 indicated that the economic value of caregiving was $350 billion, with an average hourly value of $9.63.
Background & Context
Family caregiving is a crucial part of the healthcare system in the United States, as many individuals rely on unpaid caregivers. With the increasing number of elderly individuals in American society, the demand for these services is growing. In recent years, discussions about supporting caregivers have intensified, especially in light of the economic and social challenges these individuals face.
During the recent presidential elections, both the Democratic and Republican candidates expressed their support for providing financial assistance to family caregivers. The AARP hopes that lawmakers and leaders seeking office will address this issue before the midterm elections.
Impact & Consequences
Estimates suggest that the new figure of $1 trillion for the value of family caregiving may be a low estimate. Caroline McClahan, a physician and certified financial planner, states that personal care occurring within families resembles an epidemic. She points out that families can partially plan for an event where a loved one may need care, but it is unpredictable who will actually require this care.
When clients reach their late fifties or early sixties, McClahan often discusses with them how to obtain care if they need it. She emphasizes the importance of pre-planning, including identifying who will provide care and how they will be compensated.
Regional Significance
The issue of family caregiving is significant in many Arab countries, where families play a pivotal role in providing care for the elderly and individuals with special needs. With the growing elderly population in the region, there is an increasing need for effective support strategies for caregivers. Arab governments could benefit from American experiences in this field by developing policies that support caregivers and alleviate their financial and psychological burdens.
In conclusion, the report highlights the importance of recognizing the role of family caregivers in society and the necessity of providing the required support, whether through government policies or by raising community awareness about this issue.