Cuyahoga caregivers report $11,500 annual out-of-pocket costs

Family caregivers in Cuyahoga County are paying a steep price for supporting disabled, chronically ill, or elderly adults. A new AARP study released Wednesday reveals that the average out-of-pocket cost for these individuals reached $11,508 last year. This figure represents a 60 percent increase compared to five years ago. The cost now accounts for 31 percent of the average caregiver’s income.

The rise in expenses has far outpaced general inflation. The Consumer Price Index from the federal Bureau of Labor Statistics measured overall inflation at 24 percent over the same period. Caregiving costs grew at more than twice that rate. The survey analyzed data from 2,538 family caregivers to determine these figures. Food, housing, and medical expenses emerged as the primary drivers of the increase.

Megan O’Reilly, vice president of governmental affairs at AARP, explained that the financial burden stems from increased medical responsibilities at home. “The more care that is needed, the more it costs,” she said. Caregivers often take on complex medical tasks that were previously handled in facilities. This shift drives up the demand for specialized services and supplies.

The financial strain is compounded by lost wages. The survey found that many caregivers must reduce their working hours or quit their jobs entirely. This creates a dual financial hit of higher expenses and lower income. Meghan Maher, a resident of Florida, experienced this dynamic firsthand. She became a sandwich caregiver when her mother was diagnosed with advanced cancer seven weeks after Maher gave birth to her first child.

Maher returned to her career in cancer research after maternity leave but could not manage the workload. She cut her hours to part-time and eventually quit her job. The family’s income fell by half. As her mother’s health declined, her parents moved in, adding to household expenses. Maher later needed to care for her father, who suffered major complications from abdominal surgery in 2017. She estimated that child care for her son during his father’s hospital stays cost about $10,000 a year.

Maher is not alone in her financial struggles. The AARP report indicates that about half of all family caregivers have made major financial sacrifices. These actions include working extra hours, cutting savings, or drawing down retirement funds. Approximately 63 million Americans, or roughly one in four adults, currently provide ongoing help to a family member or friend.

The need for care is projected to grow. An estimated 70 percent of people turning 65 today will require some form of assistance as they age. Medicare does not cover routine help at home or in facilities. In 2025, 40 hours of in-home care per week cost an average of $72,792 annually. A shared room in skilled nursing care averaged $115,000 per year, according to Genworth Insurance.

Public funding options exist but are limited. All states pay some types of family caregivers through Medicaid. In California, more than 800,000 caregivers earn between $16.90 and $25 an hour for in-home work. However, President Trump’s recent budget bill cut nearly $1 trillion from Medicaid funding over the next decade. This reduction is likely to strain these state programs.

Legislative efforts are underway to support caregivers. Six states currently offer tax credits for caregiving expenses, such as home modifications, ranging from $1,000 to $5,000 per year. Two other states have more limited programs. A bipartisan bill introduced last year would establish a similar $5,000 tax credit nationwide. In 14 states and the District of Columbia, most employers must offer paid family and medical leave, which includes time for caregiving. Another federal bill proposes up to 12 weeks of partly paid leave for workers nationwide.

Nancy LeaMond, executive vice president of AARP, stated that the visibility of these costs is expected to drive legislative action. “When you see the number of people paying this kind of money, I think that'll be an impetus for action in the legislative arena,” she said. Congress is also considering a bill to protect the Social Security benefits of caregivers who stop working to provide full-time care. Under current rules, these individuals see their future retirement checks shrink because they are no longer earning credits.