America Entering the ‘Golden Age of Caregiving’
The country has changed a lot since 2015 when Emilio Zagheni, an assistant professor of sociology from the University of Washington Professor published his research where he said that America is in a "golden age" of caregiving.
As the COVID-19 virus crisis places long-term health care front and center in the public's view, more families are aware of the consequences of declining health and aging.
Long-Term Care Not a New Issue
The problem of long-term health care, its costs, and its burdens on family caregivers are not new. But more adult children find themselves juggling their careers and families with the demanding job of being a caregiver for mom or dad.
The 2015 research study, "Population and Development Review," reported that one-third of Americans are informal caregivers who put in 1.2 billion hours of work per week.
53 Million Unpaid Family Caregivers
The National Alliance for Caregiving (NAC) and AARP found that the number of family caregivers in the United States increased by 9.5 million from 2015 to 2020 and now encompasses more than 53 million Americans.
The report, "Caregiving in the U.S. 2020," revealed that these family caregivers are suffering their own health problems due to their role, compared to five years ago.
This extra work as a caregiver places emotional and physical burdens on the caregivers. However, it is also a financial strain since nobody is being paid for this work.
Informal Family Caregivers Have Jobs and Families of Their Own
Many family caregivers must turn down overtime or job promotions due to caregiving. These family caregivers are usually also a spouse and a parent. That is a lot of responsibility to juggle. Many family caregivers feel overwhelmed and financially stained. The consequences are tremendous.
The time people spend caring for older adults is like having 30 million people snatched right out of the workforce. The effect on the economy is intense. Zagheni estimates that in 2012, unpaid care accounted for about 5 percent of America's Gross Domestic Product, approximately $691 billion. Today that would be much larger.
There are two groups of informal caregivers. Spouses, who are generally older and have their personal health problems to address, and the adult children who are often labeled the "sandwich generation."
Risk of Needing Long-Term Health Care Increases with Age
People require long-term health care services and supports due to an illness, accident, or the impact of aging. Declining health, mobility problems, and even frailty can create a need for a person to need help with daily living activities. As we get older, we also face a bigger risk of dementia which will require supervision.
Part of the problem is many families think that health insurance or the government, through Medicare, will pay for all this care. Outside a limited number of days of skilled care, health insurance, Medicare and supplements will not pay for most long-term health care services. Medicaid will, but Medicaid requires the care recipient to have little or no income and assets.
LTC Insurance Possible Solution
While more and more people purchase Long-Term Care Insurance as part of their retirement planning, many people don't think about it until their health changes. At that point, their insurance options are limited at best.
The problem of caregiving and long-term care continues to grow as the population gets older, and advances in medical science allow us to all live longer and longer.
Another 1.3 million caregivers could be needed by 2050
Emilio Zagheni, an assistant professor of sociology
All of Us are Aging
Changes in public policy, employer flexibility, and more people taking advantage of Long-Term Care Insurance will help families deal with the problem of aging.
U.S. Surgeon General Vice Admiral Vivek H. Murthy, M.D., M.B.A. made aging an issue during the 2015 White House Conference on Aging.
All of us our aging no matter what age we are at, to be clear
U.S. Surgeon General and Vice Admiral, Vivek H. Murthy, M.D., M.B.A.,
The Surgeon General said talking to parents about these concerns is critical. He has done so himself.
The conversations we have had is how they can stay healthy and independent as they get older, recognizing they want to be part of their children's lives, but they don't want to be dependent on their kids for everything
Can't Be Dependent on Family Caregivers
Informal family caregivers are the first line of long-term health care, but they are untrained and unprepared for the job. Often families must resort to paying for expensive professional care.
Families can go through thousands and thousands of dollars a month for professional care. Nursing homes are the most expensive, with the average cost running over $100,000 a year. However, most people will not need nursing homes but assisted living facilities and in-home care services are not cheap either.
The LTC NEWS Cost of Care Calculator will show you the current and future cost of care services where you live, along with other state-specific information - Cost of Care Calculator - Choose Your State | LTC News.
The costs continue to jump each year due to the higher demand for care services, labor shortages in some areas, and higher labor costs. Add inflation and economic concerns, and the financial impact can be dramatic.
LTC Insurance Benefits are Guaranteed - Unlike Our Retirement Accounts
Families that own a Long-Term Care Insurance policy have guaranteed tax-free benefits they can rely on to pay for their choice of quality care services. Their assets, lifestyle, and legacy will be protected. But remember, the consequences for loved ones need to be considered. When someone has an LTC Insurance policy, their loved ones will have the time to be family instead of caregivers.
Most people obtain coverage in their 50s. Aging is a real thing, and the consequences of declining health and long-term health care impact everyone in the family. Ignoring the problem is not just a financial risk - it is tough on your family as well.