Synthesis of the Caregiving Workforce: formal/informal, adult/youth, female/male Peter S. Arno, PhD Deborah Viola, PhD AcademyHealth Annual Research Meeting Boston, MA J June 28, 28 2010 A Traditional Look at Caregivng Care recipient is elderly Caregiver is female, mid-forties Demographic changes result in increased demand for care S Supply l picture i t bl bleak: k fformall caregiver i shortage, informal caregiver labor supply has diminished as well Population l i Projections j i 65 to 84 and 85 and older, 2000 to 2050 90 80 Population 85 85+ 70 60 50 40 30 20 Population 65-84 10 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 Year Population 65 to 84 Population 85 and Over U S Dept. U.S. Dept of Commerce, Commerce Bureau of the Census, Census 2004 2050 More Care Needed Decreasing g fertility y rates means fewer family y members are available to provide caregiving Labor force participation rates for women have leveled off At least 20% of the elderly do not obtain the care they need. Healthy People 2020 “Reduce the proportion of unpaid caregivers g of older adults who report p an unmet need for caregiver support services ” services. PHI (April 2008) Occupational Projections for Direct-Care Workers 2006-2016, 2006-2016 PHI Facts 1, 1 Bronx, Bronx NY: PHI PHI. Home Health Workers Disproportionately Live in or near Poverty Percent of workers below 150% of federal poverty line 20 150% of federal poverty line, 20 40% 30% 30% 20% 12% 10% 0% US Workers Source: PHI analysis of CPS 2007 DSWs Home Health Aides: Trends in Real Wages $12.00 Median hourly wage, nominal & adjusted for i fl ti - 1999-2006 inflation 1999 2006 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 1999 Source: PHI analysis of CPS 2007 2000 2001 2002 Nominal wage 2003 2004 Real wage 2005 2006 Dependence of Home Health Aides on Public Benefits Source: PHI analysis of CPS 2007 Make Career more Attractive IOM Recommendation 5.2 “State Medicaid programs should increase pay and fringe benefits for direct direct-care care workers through such measures as wage pass-throughs pass throughs, setting wage floors floors, establishing minimum percentages of service rates directed to direct-care labor costs, and other means.” In addition to Wage & Benefits, Benefits Support Career Ladders Provide ongoing training and continuing education to motivate quality care, including ESL workshops workshops. Allow for All f tuition t iti supportt for f certification tifi ti as nurse aide; nurse and; other clinical th therapy occupations. ti HCBS and Nursing Home Tradeoff Muramatsu et al, 2007 Estimated Home Care, Nursing Home Care, I f Informal lC Caregiving i i and d National Health Expenditures, U.S. 2009 Billions o of Dolla ars $2,510 $354 $70 $144 Home Care Nursing Home Care Economic Value of Informal Caregiving Total National Health Expenditures Source: Informal caregiving estimates based on authors’ estimates and expenditure data from Office of the Actuary, CMS, Health Affairs, 2009 Health Care Reform: CLASS Act CLASS: Community Living Assistance Services and Support CBO estimates Federal savings of $72 $72.5 5 billion by 2019 CLASS benefits are intended to offset the costs of Medicaid by paying for non-medical expenses that allow an individual to stay independent. p Health Care Reform: CLASS Act Establishes a national voluntary insurance program for purchasing community living assistance services and supports Seeks to alleviate burdens on families/caregivers A Wider Synthesis 40% of people receiving care are adults aged 18-64 Men represent 30% of all informal caregivers There are an estimated 1 1.3 3 million youth caregivers in the United States Three quarters of the 4.3 million people with developmental disabilities live at home, and 25% of them are cared for by a family member who is at least 60 years old. Socioeconomic S i i C Consequences affect ff t Caregivers and Care Recipients Income Education Race/Ethnicity Gender Age Marital Status Socialization Our Research Our goal is to present a national estimate for the total cost of caregiving to inform policy makers as they consider strategies to address long term care needs for the aging and disabled members of our communities; intergenerational effects; and the impact on productivity and quality of life for both caregivers and their recipients. Our Perspective How do we responsibly value one form of care over another? This isn’t our goal. Rather, R th if we consider id th the “Synthesis S th i off the th Caregiving Workforce” then what matters more is i a ttrue understanding d t di off costs t and d benefits for all caregivers in an effort to build a better b tt care economy. A Better Care Economy Policy initiatives must be threefold: • Make care giving professions an attractive career choice • Compensate direct and indirect costs of informal caregivers • Consider the continuum of care as a mix of informal, formal and long term care. Contact Information Peter S. Arno, PhD Peter_Arno@nymc.edu Deborah Viola, PhD Deborah_Viola@nymc.edu