Caregiver Costs Jump 60 Percent

Family caregivers in the United States are facing a sharp rise in out-of-pocket expenses, with the average annual cost reaching $11,508, according to a study released Wednesday by AARP. This amount represents a 60 percent increase compared to five years ago and accounts for 31 percent of a caregiver's average income.

The surge in caregiving costs has outpaced general economic growth. The increase is more than twice the 24 percent rate of inflation measured by the federal Bureau of Labor Statistics' Consumer Price Index over the same period. The study, which surveyed 2,538 family caregivers, identified food, housing, and medical expenses as the primary drivers of these rising costs.

Megan O'Reilly, vice president of governmental affairs at AARP, noted that caregivers are assuming more complex medical responsibilities at home. She explained that the level of care required directly correlates with the financial burden, stating, "The more care that's needed, the more it costs."

The financial strain is compounded by lost wages. Many caregivers reduce their working hours or leave the workforce entirely to manage care duties. The survey found that increased spending coincides with this drop in income, creating a double financial hit for families.

Meghan Maher, a caregiver from Florida, described her experience after her mother's cancer diagnosis. She left her career in cancer research, causing her family's income to fall by half. She later spent approximately $10,000 annually on child care while caring for her critically ill father. Maher testified before Congress in April regarding these challenges, saying, "The flexibility of self-employment comes with real financial and professional tradeoffs."

National data shows that 63 million Americans currently provide ongoing help to a family member or friend, roughly one in four adults. Medicare does not cover routine home care, which costs about $72,792 per year for 40 hours of weekly assistance, according to Genworth. Skilled nursing in a shared room averages $115,000 annually.

Policy responses are emerging but remain limited. Six states offer tax credits to family caregivers, typically between $1,000 and $5,000 per year, while 14 states and the District of Columbia require most employers to provide paid family and medical leave. AARP executive vice president Nancy LeaMond said she expects these issues to gain more traction in legislative discussions as more people share their financial experiences with lawmakers.