Caregivers Spend $11,508 Out of Pocket as Costs Surge 60%

Family caregivers in the United States now face a financial burden that is outpacing the general economy. The average individual spending money on out-of-pocket care costs paid $11,508 last year, according to a study released Wednesday by AARP. This figure represents a 60 percent increase from five years ago and consumes 31 percent of the caregiver's income on average.

The financial strain is accelerating faster than general price hikes. The Bureau of Labor Statistics measured overall inflation at 24 percent over the same five-year period. Caregiving costs rose at more than twice that rate. The study surveyed 2,538 family caregivers who assist disabled, chronically ill, or elderly adults. Food, housing, and medical expenses account for the largest share of these out-of-pocket payments.

Megan O'Reilly, vice president of governmental affairs at AARP, attributes the rise to the complexity of care provided at home. Caregivers are taking on more medical responsibilities that were previously handled by facilities. O'Reilly stated that the more care required, the higher the cost becomes. The financial impact is compounded by lost wages. Many caregivers reduce their working hours or leave the workforce entirely to meet the demands of their role.

Meghan Maher experienced this double hit firsthand. Seven weeks after the birth of her first child, her mother was diagnosed with advanced cancer. Maher, a cancer researcher, initially returned to work after maternity leave but found the schedule impossible to maintain. She cut her hours to part-time before quitting entirely, which halved the family's income. Her mother later moved in, increasing household expenses.

After her mother died in 2017, Maher's father suffered severe complications from abdominal surgery. He was critically ill for months, requiring Maher to advocate for him during hospital stays. The family also incurred approximately $10,000 a year in child care costs. Maher eventually became a professional death doula, a self-employed role that offers schedule flexibility. However, her income is half of what she earned in her previous career.

The scale of this issue is expanding. About 63 million people currently provide ongoing help to a family member or friend, representing roughly one in four adults. Medicare does not cover routine in-home or facility care. Genworth, an insurance company that tracks care costs, calculated that 40 hours of in-home care per week costs about $72,792 annually in 2025. Skilled nursing in a shared room averages $115,000 per year.

About half of all family caregivers report making major financial sacrifices. These include working more hours, cutting savings, or drawing down retirement funds. In Florida, Maher notes that chronically ill individuals often pay about $6,000 for attorneys to navigate Medicaid applications for long-term care. All states pay some types of family caregivers through Medicaid, with rates in California ranging from $16.90 to $25 an hour. Trump's budget bill cut nearly $1 trillion from Medicaid funding over the next decade, threatening these payments.