Considering the financial cost of caregiving

By Caroline Rosacker

There are four kinds of caregivers: those who have been caregivers; those who currently are caregivers; those who will be caregivers and those who will need caregivers. 

On Thursday, Feb. 6, the Guttenberg Municipal Hospital and Clinics (GMHC) and the Family Resource Center hosted a program provided by Iowa State University Extension & Outreach. Program presenter Jeannette Mukayisire, Human Sciences and Family Financial educator, presented a program based on the workshop she teaches through the University's outreach program. 

The workshop covers learning how to make informed financial decision for your loved ones and covers the potential financial burden that is placed on the caretaker. 

Caregiver challenges

Mukayisire commented, "Older individuals living in Iowa are greater than the younger population. Six out of 10 caregivers involved in care giving are employed. Taking time off from work or even walking away from your job to care for a loved one may become a reality for you." 

She noted, "The average number of hours spent caring for a dependent family member is 24.4 hours per week, 41 hours plus if you need to hire a professional."

There are many benefits to caring for a loved one. "Spending time with parents, grandparents and dependent children can bring joy and quality to your life, but care giving can also be very stressful. The need to focus our attention on health care, safety, finances and logistics can quickly rob us of the joy we should be experiencing," said Mukayisire. 

The importance of having a good solid financial plan in place can relieve some of the stress associated with custodial care. Mukayisire stressed, "Do you know where your loved ones' important documents are kept? Who is their insurance provider? Do they have a will and is it up to date? What kinds of medications do they take? Where do they have their prescriptions filled?" She continued, "When a loved one is ill and needs professional care they may not be in a capacity to answer those questions. You and your extended family will need to have the answers."

Emotional reactions can crop up quite quickly when family members are faced with a loved one's decline. She expressed, "It is important for family members to communicate with one another before a crisis occurs. Oftentimes caring for a dependent individual can come on quite slowly. They may start out needing assistance with transportation, medication, shopping, bill paying and household chores. That can slowly escalate to assistance with dressing, bathing and trips to the rest room." 

Personal costs

"Typically the caregiver living in the closest proximity of the dependent individual is the one responsible for the care. Loss of free time, wages and unforeseen expenses can quickly add up," she shared. 

The financial impact on caregivers is estimated to be $5,531 dollars annually. The cost to employers is estimated at $13 billion. Mukayisire explained, "When people have to quit their job to care for a loved one, it directly affects the working world. It also translates into lost wages and Social Security benefits for yourself." Mukayisire recommended, "Look into insurance policies, pension and retirement benefit plans, financial institution accounts, credit cards and loan accounts. Could they pay for someone to care for them at home – even if it was their own child? It is inappropriate to expect a sibling or relative to carry the full burden of care because of their close proximately to those in need." 

Estimated health care costs 

Mukayisire shared some estimated health care costs per year.

• Home health aide $52,624

• Homemaker services $51,343

• Adult day care $15,600 

• Assisted living $42,000 

• Nursing home semi-private $62,875

•Nursing home private $68,000 and up.

"Medicare pays for very little when it comes to long-term care. Medicaid will pay for some, but it depends on the plan," she added. 

Outreach workshop

A financial planning workshop could be available to area residents if there is enough interest. Classes would be held every other week at a total cost of $35 per person. There must be at least 12 individuals signed up to make the class possible.

The Iowa State University Outreach financial workshop program includes: 

• Lesson 1: Understanding your starting point

• Lesson 2: Why it is essential to plan

• Lesson 3: Caregiver finances 

• Lesson 4: Paying for care

• Lesson 5: Effective communication 

"We will recognize the importance of planning early to assist family caregivers to protect their own retirement; learn the importance of gathering information in advance; learn how to include all family members in discussions; identify options for meeting long-term care needs and learn some communication techniques for discussion," she said. 

Lunch and Learn

Lunch and Learn is a free monthly program that focuses on community health and wellness and is open to the public. 

For additional information, contact the Family Resource Center located at 514 S. River Park Dr., Guttenberg or call (563) 252-3215. Hours of operation are Monday - Thursday from 8 a.m. - 4 p.m., Friday 8 a.m. - noon; closed Saturday and Sunday.