Resolution: F-20-6: AOA SUPPORT LEGISLATION TO ALLEVIATE THE FINANCIAL BURDENS OF AT-HOME CAREGIVERS AND THE HEALTH CARE SYSTEM AT LARGE

[Valerie Lile]

1  WHEREAS, in 2017, about 41 million family caregivers in the United States provided an
2  estimated 34 billion hours of unpaid care to an adult with limitations in daily activities¹; and
3  WHEREAS, the estimated economic value of their unpaid contributions was approximately
4  $470 billion¹; and
5  WHEREAS, caregivers of parents lose an estimated total of nearly $3 trillion in lost wages,
6  pension, and Social Security benefits²; and
7  WHEREAS, the average loss of income during the caregiving period for both men and women
8  is estimated to be $303,880²; and
9  WHEREAS, caregivers who provide financial assistance for their loved ones in the form of
10  medical and household expenses report paying an average of $10,400 per year out-of-pocket in
11  2018, which has increased about 30% compared to 5 years prior³; and
12  WHEREAS, the overwhelming responsibility of caregiving often affects the caregiver’s ability
13  to remain in the workforce. Out of 739 people surveyed, 70% of caregivers reported missing
14  time from work to care for a family member; 46% reported limiting their work hours; 33%
15  reported using vacation, sick time or repeated work absences to care for their loved ones; 20%
16  reported unavoidable tardiness to work, and 9% have lost their jobs as a result of caregiving
17  responsibilities³; and
18  WHEREAS, people of color are disproportionately affected by the financial strains of
19  caregiving, as they are more likely to adopt the role of caregiver. Approximately 20% of Latinx,
20  African-American and Asian-American people are caregivers compared 16.9% of White
21  Americans⁴; and
22  WHEREAS, the variability of caregiving duties across groups create disparities between
23  communities of color as well. For example, Latinx folks are particularly burdened by caregiving
24  duties, as they report spending an average of 30 hours per week providing care while Asian
25  Americans report spending about 16 hours per week caregiving, further exacerbating disparities
26  in financial and occupational stability across races/ethnicities⁴; and
27  WHEREAS, everyday 10,000 people turn over the age of 65, and seven out of 10 of them will
28  require some form of long-term medical care at some point³; and
29  WHEREAS, eight out of 10 aging Americans report a preference to die at home. Yet only 20%
30  of all those who die in the U. S. every year are able to do so⁵. The majority of these annual
31  deaths take place in acute care hospitals⁵; and
1  WHEREAS, individuals who are supported by caregivers report better health outcomes, such as
2  being less likely to get urinary tract infections, pneumonia, or bedsores and are far less likely to
3  suffer shortness of breath⁶; and
4  WHEREAS, caregivers who were provided financial assistance reported a 30% decline in
5  emergency room utilization for their loved one(s) and a 50% decrease of any hospital utilization.
6  As a result, inpatient days in the hospital decreased by about 13 days on average, equating to
7  $1,370 in Medicaid savings per patient over 9 months⁶; and
8  WHEREAS, there are no programs that offer sufficient federal tax credits; the only bill that
9  would have created a federal income tax credit of up to $3,000 during the taxable year, known as
10  the Credit for Caring Act, was stalled in congressional committees in 2018⁷ and is still under
11  evaluation by said committees in 2020; and
12  WHEREAS, New Jersey is currently the only state that has enacted a state income tax credit.
13  Only 10 other states are considering passing a bill that offers tax credits but none of those bills
14  have officially passed¹;
15  WHEREAS, the 2017 federal tax law expanded the Child Tax Credit (CTC) to allow taxpayers
16  to claim up to $500 as a nonrefundable “Credit for Other Dependents”⁸. Taxpayers can claim
17  individuals related by blood, marriage, and adoption8. However, claiming $500 or less is not
18  enough money to alleviate the financial burdens of these caregiving families who are paying an
19  annual average of over $10,000 in out-of-pocket expenses³; and therefore, be it
20  RESOLVED, that the Student Osteopathic Medical Association (SOMA) recommends that the
21  American Osteopathic Association (AOA) support federal policy and legislation that alleviates
22  the financial burden experienced by caregiving families and the healthcare system at large.

Explanatory Statement

The AOA supports federal funding for support services for palliative care patients through H601-A/19, but this does not include support for at-home caregivers.

Relevant Existing Policies:

SOMA Policy: N/A

Policy of Other Organizations Named in the Resolved Statements (AOA/AMA/etc): H601-A/19

References

1. Reinhard, S. C., Feinberg, L. F., Houser, A., Choula, R., & Evans, M. Valuing the invaluable: 2019 Update, charting a Path Forward. AARP Public Policy Institute. November 2019; Issue 146:1-32.
2. MetLife Mature Market Institute. The MetLife study of caregiving costs to working caregivers: Double jeopardy for baby boomers caring for their parents. 2011. MetLife: Mature Market Institute; pages 1-23.
3. Beyond Dollars 2018: How caregiving impacts families, communities, and society. Genworth Financial, Inc. November 5^th, 2018: pages 1-19.
4. Hunt, G.G., Reinhard, S., Greene, R., Whiting, C. G., Feinberg, L. F., Choula, R., Green,
5. & Houser, A. 2015 report: Caregiving in the US. NAC and the AARP Public Institute.June 2015: pages 1-81.
6. Bailey, A. & Periyakoil, V. J. Palliative Care: Where do Americans die? Standford School of Medicine. Retrieved from https://palliative.stanford.edu/home-hospice-home- care-of-the-dying-patient/where-do-americans-die/. Publication date unavailable. Accessed on February 17^th, 2020.
7. Coe NB, Guo J, Konetzka RT, Van Houtven CH. What is the marginal benefit of payment-induced family care? Impact on Medicaid spending and health of care recipients. Health Econ. 2019;28(5):678–692. doi:10.1002/hec.3873
8. Young, S. California among states considering caregiver tax credits. Kaiser Health News. https://www.latimecom/business/la-fi-caregiver-tax-credits-20190321-story.html. Posted March 21, 2019. Accessed on February 7^th, 2020.
9. Tax tips for family caregivers. AARP Family Caregiving: Financial and Legal. Retrieved from https://www.aaorg/caregiving/financial-legal/info-2017/tax-tips-family-caregivers.html. Updated on January 3rd, 2020. Accessed on June 28th, 2020.

Submitted by:

Jacob Berrgren, OMS-II – A. T. Still University Kirksville College of Osteopathic Medicine
Christine Harb, OMS-III – A. T. Still University Kirksville College of Osteopathic Medicine

Action Taken: [Leave Blank. Will be Approved by the House of Delegates or Not Approved.]
Date: [Leave Blank. Date submitted to National Vice President and the National Office.]
Effective Time Period: Ongoing

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