Home Care Costs Surge to Over $60,000 Annually as Inflation Outpaces Wages

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The cost of home care in the U.S. has skyrocketed, leaving older adults and family caregivers grappling with unprecedented financial strain. From September 2023 to September 2024, home care costs surged by 8.7%, far outpacing the general inflation rate of 2.4%. The median hourly cost for home care now stands at $30 per hour, translating to an overwhelming $60,000 per year for full-time care. This is a crushing burden for many households, who already face rising living expenses and stagnant wage growth.

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At a time when inflation is cooling down for most goods, the relentless rise in home care costs has been fueled by several factors. Wages for home care workers have increased, driven by labor shortages, and the cost of medical supplies and utilities has also spiked. For many, home care is a necessity, not a luxury. Yet, with these soaring costs, it is becoming increasingly out of reach for those who need it most.

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As inflation continues to hit the most vulnerable, the situation is quickly becoming unsustainable. Family caregivers, who already sacrifice their time and energy, are now being stretched even thinner financially. Without meaningful intervention, the growing gap between rising home care costs and stagnant wages could force many families to make impossible choices—between the care their loved ones deserve and financial survival.

Sources:

https://blog.aarp.org/thinking-policy/inflation-hits-home-care-increasing-pressure-older-adults-family-caregivers

https://www.seniorlivingspecialists.com/2024/06/does-inflation-impact-senior-care-costs/