Long-term care costs in the United States surged nearly 50% between 2019 and 2024, according to an AARP Public Policy Institute study. This sharp rise is forcing middle-class families to exhaust their life savings or forgo essential medical support. With nearly 70% of Americans requiring care after age 65, the financial burden is increasingly shifting to unpaid family caregivers.
The Rising Cost of Aging in America
For 71-year-old retired pharmacist Ken Sternfeld, securing basic in-home care became a secondary, full-time job. After spending over a year navigating bureaucratic hurdles, denied claims, and appeals, the Sternfelds eventually accessed Medicaid. However, the process required them to deplete their retirement savings to pay for out-of-pocket expenses. Today, their only income comes from Social Security, which is largely consumed by rent.
The financial pressure on the Sternfelds is a reflection of a broader national trend. Data from the AARP Public Policy Institute reveals that the cost of long-term care has spiked significantly over the last five years. These increases have consistently outpaced household incomes, leaving many families without a viable safety net.
Did you know?
According to the U.S. Department of Health and Human Services, nearly 70% of Americans will need some form of long-term care once they reach age 65.
The Burden on Family Caregivers
When insurance coverage falls short, families often fill the gap. A 2024 report from the AARP notes that family caregivers provided nearly 50 billion hours of unpaid labor, valued at more than $1 trillion. This model is becoming increasingly difficult to maintain as caregivers struggle to balance full-time employment with the physical and emotional demands of caring for a loved one.
"In many instances, this is unsustainable, and it is a wake-up call for our country."
Policy Stagnation and Future Outlook
The AARP has spent roughly a decade lobbying for a family caregiver tax credit, a measure designed to provide financial relief to those providing unpaid support. Despite the growing demand for such assistance, the proposal remains stalled in the legislative process.
Without systemic policy changes, families are frequently pushed into two difficult pathways: either abandoning professional care entirely or attempting to manage health needs independently until their financial resources are depleted. As the population continues to age, experts suggest that the current reliance on family labor and personal savings is unlikely to be sustainable.
Pro Tip: Planning for Long-Term Care
Review your insurance policies and state-specific Medicaid eligibility requirements well before care becomes a necessity. Consult with a financial advisor regarding long-term care planning to understand how asset depletion affects future benefits.
Frequently Asked Questions
How much have long-term care costs increased recently?
Costs spiked nearly 50% between 2019 and 2024, according to the AARP Public Policy Institute.
What is the estimated value of unpaid family caregiving?
AARP reports that in 2024, family caregivers provided nearly 50 billion hours of unpaid labor, with an estimated value exceeding $1 trillion.
Is there a federal tax credit for family caregivers?
No. While the AARP has lobbied for a caregiver tax credit for approximately a decade, the measure has not yet been passed into law.
Are you or a loved one navigating the complexities of long-term care? Share your experiences in the comments below or subscribe to our newsletter for updates on healthcare policy and senior living resources.
Worth a look