How do we better support family care workers? Pay money – Retirement Research Center
Although care for older adults in the United States is paid for by Medicare, Medicaid, or out-of-pocket expenses, most care is provided by family members without compensation. However, the burden on these family members can also be large in giving up paid employment or job opportunities, time with family and friends, and general exhaustion.
A recent summary of questions published by the Boston College Retirement Research Center examines these costs to support the policies of home caregivers and their preferences expressed in focus groups. Here are some of these findings:
In 2021, approximately 38 million family carers in the United States provided 36 billion hours of assistance to their families.
Racial Difference
White caregivers are more likely to be spouses and older than black or Hispanic caregivers, who are more likely to be children or grandchildren of the person they care about. While 56% of white care workers are over 62 years of age, only 37% of blacks and 30% of Hispanic care workers are this age. Compared with one-third of black care workers (more than 40% of Hispanic care workers), only one-fifth of white care workers are under the age of 50. Non-white caregivers are also more likely to provide more hours of care per week.
Not surprisingly, the age and higher care time of non-white care workers have a greater impact on their ability to maintain employment, which can have a ripple effect on their current and future finances as they earn less and contribute less to social security at work.
Limited help
In terms of existing financial support, family caregivers can require a child and support tax credit to cover out-of-pocket costs up to $3,000 for one support, while two or more supporters are out-of-pocket costs of $6,000. The utility of this tax relief is limited for several reasons: family members must be eligible for dependencies; credit is only used for out-of-pocket expenses, not for compensation for care time and energy; it is non-refundable, meaning low-income caregivers without federal income tax obligations cannot be used.
The Family and Sick Leave Act (FMLA) provides up to 12 weeks of unpaid leave to workers who need to take leave. Lack of payments undermines the utility of most workers. 14 states offer some form of paid family leave, and the terms vary by state.
What caregivers want
Researchers at Boston College and the University of Massachusetts Boston University Center for Retirement Research chaired a focus group for home care workers to understand which public policies can help them best. According to their report, participants indicated a huge benefit to obtain paid leave of care and tax credits. Many of them have no jobs and therefore won't benefit from paid leave, and the proposal of only 12 weeks of paid leave is considered too short to achieve too much.
Few caregivers are interested in suggesting to give them future Social Security credit loans, as this policy idea focuses on the future rather than their direct financial needs. Some are interested in making recommendations for paid care suspensions to provide much-needed breaks, but they express concern about the quality of care provided by ladder staff.
The biggest response after direct payment is to reimburse the caregiver for the expenses associated with the support they provide to their families.
Although these preferences were consistent across all participants, non-whites favored direct payments and cost reimbursement more than white caregivers. There is no doubt that this difference reflects a greater impact on their employment, as their average age is as described above.
The ability of family members to provide necessary care to older and younger persons with disabilities relieves the stress on the burden on nursing homes, assisted living facilities and home care providers and the public budget, especially Medicaid. As the baby boomers reach late stages, pressure on this system will increase, as the demand for elderly care doubles between 2030 and 2050.
It makes sense to do our best to support family caregivers better. This study clearly shows that the best way is to provide financial assistance to family members in terms of their care and compensation for out-of-pocket expenses.
For more information about Harry Margolis, check out his risk in Senior Blog and Podcast in the United States. He also answers consumer real estate planning questions at Askharry.info. To stay up to date on the Squared Blog, join our free email list. You will only receive one email per week.
