Volunteer Hours Taking Care of Loved Ones Hits $16.1 Billion

Fascinating story from the Indiana Capital Chronicle yesterday. It deals with the amount of unpaid labor that exists when it comes to caring for Hoosiers who need constant care. AARP, the American Association of Retired Persons, did some analysis on this. As you know, AARP advocates for older Americans and issues affecting people of advanced age. They did the math on the dollar value of unpaid caregiving in Indiana, and the numbers are very interesting. They looked at what the value would be if you assigned a dollar amount to the care people provide for free to aging parents, spouses, children with severe disabilities, and others who need regular assistance. AARP found that 1.1 million Hoosiers act as caregivers to parents, spouses, and other adults who require continuing care. Think about that. In a state of roughly seven million people, if you remove children and look at the adult population, you’re talking about about one-fifth of people providing care for a loved one who needs it. That’s a very Hoosier thing, and it’s something to appreciate. The total value of that unpaid labor each year is $16.1 billion. To reach that number, AARP estimated that Hoosiers provide about 860 million hours of unpaid caregiving annually. They then used the market rate for professional caregiving services, which is about $18.68 per hour. Multiply 860 million hours by $18.68 an hour, and you get roughly $16.1 billion in unpaid labor every year. What makes this even more interesting is how much the numbers have increased in a short period of time. In 2023, about 790,000 Hoosiers provided roughly 740 million hours of care to loved ones and people with severe disabilities. The estimated value at that time was $10.8 billion. Now you’re seeing 1.1 million caregivers providing 860 million hours of care, with the estimated value rising to $16.1 billion. That trend makes sense when you think about it. People are living longer, the population continues to grow, and the number of older residents is increasing. As that population grows, more time and care are required. In just two years you’ve seen a major jump. The number of caregivers rose from 790,000 to 1.1 million. The total hours increased from 740 million to 860 million. And the estimated value climbed sharply from $10.8 billion to $16.1 billion. Part of the story involves government policy. The state has reduced the amount of money it provides to family members who care for elderly relatives or people with severe disabilities. One reason for that is the financial strain on Medicaid in Indiana. Medicaid in the state has been facing significant budget pressure, and officials have been trying to cut hundreds of millions of dollars. According to the discussion in the report, the issue traces back in part to policy decisions during the COVID period, when Medicaid enrollment expanded significantly. As federal funding tapered off, the state was left managing a much larger program. Because of those financial pressures, the state has been looking for ways to reduce costs. One of the areas affected has been payments to family caregivers. That has created difficult situations for many families. Caregivers often dedicate large portions of their lives to helping loved ones who cannot care for themselves. The work is constant and demanding, and the compensation they receive rarely comes close to reflecting the time involved. For example, think about families caring for individuals with severe disabilities. I’ve talked before about my friend Michael. Michael has multiple medical conditions, including cerebral palsy. He uses a wheelchair and cannot speak, but he is very intelligent. His parents provide around-the-clock care for him, and they work hard to give him the best life possible despite the challenges he faces. Families like that devote enormous time and energy to caregiving. When state support is reduced, it creates real financial pressure. Parents and relatives may be forced to ask difficult questions about how to manage daily expenses such as housing, food, and medical needs. Some caregivers eventually feel they have no choice but to return to full-time work outside the home. When that happens, families sometimes have to consider alternatives like nursing homes or care facilities for loved ones who had previously been cared for at home. That’s the difficult trade-off many families face. According to the Capital Chronicle, the average family caregiver in Indiana spends about 27 hours each week assisting a parent, spouse, or other adult who needs help.