People caring for elderly or disabled relatives need a break – and, in Michigan, Gov. Gretchen Whitmer has a proposal to give them one.
Authors
Sarah E. Patterson
Research Investigator at the Survey Research Center at the Institute of Social Research, University of Michigan
Adriana Reyes
Assistant Professor of Public Policy, Cornell University
Whitmer’s , the Caring for MI Family Tax Credit, is part of a growing trend of public subsidies for families shouldering the responsibilities of caring for family members.
Americans strongly endorse the idea that families, not the government or other organizations, are responsible for providing care for family members. They especially endorse providing care for their aging parents.
That may help explain why family members are the main and sometimes only and others with in the United States.
We are researchers who study and . Our finds that when given a choice between family, government or other care providers, many Americans think family should provide care but the government should pay for it.
Caregiving costs can be substantial. On average, a caregiver in Michigan can expect to spend over per year. One study estimates the cost of care for a person with dementia are even higher, ranging , depending on the severity of the disease. Another estimate that accounts for the total impact of caregiving, including costs such as lost wages and the impact on caregiver’s health, puts the personal expense of caring for a loved one at roughly .
Despite this steep price, address caregivers’ financial burdens.
In response, states have begun to pass their own policies, like in states such as California, Washington and Massachusetts, and, increasingly, like Whitmer’s proposal in Michigan.
Helping to offset, reduce costs
Currently, – Montana, North Dakota, Missouri, Georgia, South Carolina and New Jersey – offer a tax credit to offset .
The credit can be used to cover home modifications such as ramps or bathroom grab bars, assistive devices such as a cane or walker, or to pay a professional care worker.
Whitmer’s proposal is generous compared with other states. For example, reimburses up to 10% of costs, with a cap of $150.
A needed break
The proposed Michigan tax credit would support counseling, transportation and nursing or respite services that pay a caregiver to come help so the family caregiver can have a break.
These types of services , which helps and individual .
Respite care use has become , especially among families providing care for older adults with dementia. However, many caregivers are unable to access these services. One barrier is , which averages .
Public support for caregivers increasing
Recent polls show that a majority of Americans want Medicare, the federal program that provides health care to people over 65, to help cover .
In terms of what supports should be made available to caregivers, receive the greatest public support relative to other programs, such as unpaid time off.
A recent AARP study of registered voters ages 50 and older found 8 in 10 people support a $5,000 annual . Another study of voters of all ages found similar support for expanding the to include family caregivers.
Evidence suggests that tax credits implemented in Arizona and Idaho in a three-year test of the program in the early 1980s had the desired effect – and a reduced use of formal care. Paid leave in California is also associated with a reduction in .
The benefit of the Caring for MI Family Tax Credit will depend in large part on the details and design of the policy. A refundable tax credit will provide greatest benefit to low-income households.
A similar federal bill, the , has been introduced in Congress. If passed, the legislation would provide a federal tax credit for working family caregivers to cover 30% of expenses incurred above $2,000.
And other are also considering introducing tax credits to help offset the cost of caregiving.
The population of , will need caregiving in the near future.
The introduction of these bills reflects Americans’ growing support for new solutions to defray the costs associated with providing care to a loved one.
Sarah E. Patterson receives funding from the ³Ô¹ÏÍøÕ¾ Institute on Aging (NIA). She volunteers with the Alzheimer’s Association in Michigan.
Ariana Reyes receives funding from the ³Ô¹ÏÍøÕ¾ Institute on Aging (NIA).
