Which LTSS financial support policies are preferred among caregivers and can they reduce racial/ethnic disparities in retirement?

Abstract

While family caregivers are the backbone of the long-term services and supports (LTSS) system of care, caregiving is challenging and often comes at a financial cost for caregivers, from both the direct costs incurred in providing care and the reduced labor market earnings in order to provide caregiving. As a result, many caregivers could end up jeopardizing their own retirement security. While the need for better supports is clear, what is less understood is which policies would be most beneficial in alleviating financial burdens associated with caregiving and whether different policies are more effective for or favored by different racial/ethnic groups. Existing policies to alleviate direct out-of-pocket costs or labor market costs for family caregivers are often limited and piecemeal, and vary dramatically by state. This project uses a mixed methods approach to understand which policy proposals would be most beneficial for different groups of caregivers. The paper found that: Focus group participants across all socioeconomic and demographic groups preferred direct monetary compensation for caregiving or reimbursements for out-of-pocket costs. Participants' least favored policy was paid family leave. Responses align with the quantitative analysis, showing that caregivers would receive the most financial benefit from being paid directly. The policy implications are: Caregivers, particularly caregivers from diverse backgrounds face large financial costs for caregiving and prefer policies that alleviate those costs. Much of the policy discussion has focused on forms of paid leave, which is one of the least popular polices among caregivers.