What's gone up even faster than gas or rent? The cost of caregiving

Key Points:

• Family caregivers now spend an average of $11,508 annually out of pocket, a 60% increase over five years, amounting to 31% of their income, driven mainly by rising costs of food, housing, and medical expenses.
• Caregiving demands often force individuals to reduce work hours or quit jobs, leading to lost income alongside increased expenses, creating significant financial strain for many families.
• Approximately 63 million Americans provide ongoing family care, with future demand expected to rise as 70% of those turning 65 will need assistance; however, Medicare does not cover routine caregiving costs, which can exceed $70,000 annually for in-home care.
• Some states offer Medicaid payments or tax credits to family caregivers, but funding is threatened by federal budget cuts, and navigating eligibility for benefits like Medicaid or Veterans Administration aid often requires costly legal assistance.
• Legislative efforts are underway to support caregivers, including proposed tax credits, paid family leave policies, and Social Security benefit protections, reflecting growing recognition of the financial and personal challenges faced by family caregivers.