Healthcare costs in the U.S. are rising at an alarming pace. In 2024, family health insurance premiums reached $25,572 – a 7% increase from the previous year – with employees contributing an average of $6,296 out of pocket. Costs are expected to rise nearly 8% in 2025, with steady increases through the next decade.
For working caregivers, these rising costs amplify the financial and emotional challenges of supporting loved ones. Beyond premiums, caregivers face additional expenses like medical equipment, home health aides, and transportation for appointments, often spending over $7,200 annually.
These mounting pressures force many caregivers to tap into savings (nearly 40%) or take on credit card debt (28%). Over time, they erode financial security, as caregivers reduce retirement contributions or delay major financial goals like buying a home or saving for education.
Four trade-offs of caregiving: health and financial strain
The pressures of caregiving often come at the expense of caregivers’ own health and well-being, creating a vicious cycle of stress and vulnerability:
- Delayed preventive care: 23% of caregivers have skipped or delayed their own healthcare appointments, prioritizing their loved ones’ needs. This neglect can lead to undiagnosed conditions, poorer long-term outcomes, and increased healthcare costs down the road.
- Chronic stress and burnout: Rising healthcare costs amplify anxiety and burnout, with 60% of caregivers reporting higher stress levels. Prolonged stress raises the risk of chronic conditions, such as hypertension, depression, and heart disease.
- Sleep and nutrition sacrifices: Many caregivers report skipping meals or losing sleep to manage caregiving duties. Over time, this weakens the immune system, causes weight fluctuations, and leads to chronic fatigue – further hindering their ability to care effectively.
- Financial strain fuels health decline: Caregivers often reduce work hours, decline promotions, or leave the workforce entirely, limiting their earning potential. These financial sacrifices compound stress levels and increase vulnerability to long-term health issues, including diabetes and cardiovascular disease.
The rising costs of healthcare are creating an unsustainable burden for employee caregivers, but employers have a unique opportunity to help. By investing in caregiver support programs, organizations can provide resources that alleviate financial stress, improve caregivers’ well-being, and help them navigate the challenges of caregiving, ultimately building a more resilient workforce.
