Caregiver Costs Rise Faster Than Inflation

Family caregivers in the United States are facing a financial burden that is growing at more than twice the rate of general inflation.

A study released Wednesday by AARP, originally shared with NPR, reports that people providing unpaid care for disabled, chronically ill, or elderly adults now spend an average of $11,508 out of pocket annually. This figure represents a 60% increase compared to five years ago. The cost amounts to 31% of a caregiver's average income. In comparison, the federal Bureau of Labor Statistics measured overall inflation at 24% during the same period.

The survey, which interviewed 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 as caregivers take on more complex medical responsibilities at home, the financial demands increase. O'Reilly stated, "The more care that's needed, the more it costs." The financial strain is compounded by lost wages, as the survey found that many caregivers must reduce their working hours or leave the workforce entirely to manage their duties.

Meghan Maher, a former cancer researcher turned professional death doula, described the impact of these demands on her own life. After her mother was diagnosed with advanced cancer seven weeks after the birth of Maher's son, she became a sandwich caregiver, responsible for both her infant and her ill mother. Maher eventually left her research career, halving her family's income. When her father later suffered critical complications from abdominal surgery in 2017, the family had to pay approximately $10,000 annually for child care so Maher could advocate for him in the hospital. She now works as a self-employed death doula, a role that offers schedule flexibility but provides half the income of her previous position.

Maher is one of an estimated 63 million Americans who provide ongoing care to a family member or friend, a group that represents roughly one in four adults. The AARP report indicates that about half of these caregivers have made major financial sacrifices, including cutting savings or dipping into retirement funds. Medicare does not cover routine in-home or facility care, leaving many to pay out of pocket. According to insurance company Genworth, 40 hours of in-home care per week cost about $72,792 in 2025, while a shared room in skilled nursing care averaged $115,000 per year.

In Florida, where Maher resides, the administrative complexity of qualifying for Medicaid, which does cover long-term care, often forces patients to hire attorneys. Maher estimates this legal assistance costs about $6,000 per person. In May, Maher testified before a Senate committee on aging, explaining that the flexibility of self-employment comes with real financial and professional tradeoffs. She was invited to speak by Daughterhood, an organization that supports caregivers.

Legislative efforts to assist caregivers are underway, though funding for existing programs is under pressure. All states pay some family caregivers through Medicaid, but President Trump's budget bill cut nearly $1 trillion from Medicaid funding over the next decade. In California, more than 800,000 caregivers earn between $16.90 and $25 an hour for in-home work. Six states currently offer tax credits of $1,000 to $5,000 for home modifications, while two others have more limited programs.

Congress has introduced several bills to support caregivers, including a bipartisan proposal for a nationwide $5,000 tax credit. Another bill would mandate up to 12 weeks of partially paid leave in all states, a policy currently required in 14 states and the District of Columbia. A third proposal aims to protect Social Security benefits for full-time caregivers who pause their earnings. Nancy LeaMond, AARP executive vice president, said that the visibility of these costs is likely to drive legislative action.