We all have expenses that arrive unexpectedly from time to time. Hopefully we have a "rainy day" fund to help with those expenses. But what happens when the unexpected expense becomes an ongoing situation because you have become a caregiver?
In 2013 it was estimated that the cost of care for Americans with Alzheimer's Disease or a related dementia was $203 billion. Medicare and Medicaid payments accounted for $142 billion of that amount, while out of pocket expenses accounted for $34 billion. Or to put it another way, the monies spent caring for an individual with dementia averages to $45,657 per year as compared to $14,452 a year for those without dementia.
A caregiver---be it a spouse, partner, family member, friend etc--- is an unpaid individual that assists others with their activities of daily living (ADL's) or medical tasks. Those UNPAID services are valued at $450 billion a year. That is in addition to the $203 billion mentioned above.
Caregivers suffer loss of wages , health insurance and other job benefits. They have to dip into their retirement savings and investments. Losses that hold serious consequences for the "career caregiver"
Caregivers face tough decisions as they navigate the challenges of dementia care. What solutions are there? Here are a few suggestions:
- Organize and review important financial documents, especially insurance policies
- Find out what government programs are available
- Learn about what tax breaks may be available
- Take advantage of low cost and community services
In absence of a cure, the best thing for someone with Alzheimer's or demntia is good caregiving. Caregivers can provide that good care by planning and researching their financial options.
