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AARP: Family Caregivers Provide $1 Trillion in Unpaid Care Yearly

AARP's 2024 report estimates that 59 million American family caregivers provided 49.5 billion hours of unpaid care worth $1.01 trillion annually, surpassing Medicaid and out-of-pocket health expenditures. Caregivers handle tasks like medication management and daily assistance, often while working and raising children. AARP is pushing for tax credits at state and federal levels to alleviate financial strains. Experts caution that the true economic value may be higher due to the broad scope of unpaid work. The report underscores the increasing burden on caregivers and the urgency for policy support.

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AARP: Family Caregivers Provide $1 Trillion in Unpaid Care Yearly

In 2024, approximately 59 million Americans delivered 49.5 billion hours of unpaid care to family members, equating to an economic value of $1.01 trillion, according to a new AARP report.

Report Findings

  • 59 million caregivers provided 49.5 billion hours of care in 2024.
  • Total annual economic value: $1.01 trillion.
  • Average hourly value: $20.41.
  • This exceeds $932 billion in combined federal, state, and local Medicaid spending and $557 billion in out-of-pocket health costs.

Scope of Caregiving

Caregivers perform essential tasks, including:

  • Managing medications
  • Coordinating care appointments
  • Assisting with bathing, dressing, and other daily activities
  • Navigating insurance claims
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Policy Advocacy

AARP is advocating for legislative support:

  • State level: Oklahoma and Nebraska have enacted caregiver tax credits; 12 states considered similar legislation in 2026.
  • Federal level:
    • Credit for Caring Act: proposes a $5,000 tax credit for caregiving expenses.
    • Lowering Costs for Caregivers Act: permits use of health savings or flexible spending accounts for parents' qualified medical expenses. Both bills have been pending in the House Ways and Means Committee since early 2025.

Expert Perspective

Carolyn McClanahan, a physician and certified financial planner, asserts the $1 trillion figure is likely an underestimate due to the extensive and varied nature of unpaid caregiving. She notes that while families can plan, care needs are unpredictable, and many caregivers face significant financial and emotional strains while balancing work and family responsibilities.

Historical Context

This is AARP's seventh report on caregiving costs. The economic value has risen from $350 billion in 2006 (with an hourly value of $9.63) to over $1 trillion in 2024, highlighting the growing demand for long-term care.

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