New Study Examines Impact of Possible Home-Care Subsidy

A study released in February by CESIFO constructs a model to examine how a public home care subsidy for seniors would impact a family’s spending on in-home care and the decisions of the family overall when it comes to that care.

The study, titled “Fiscal Incidence when both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home-Care for the Elderly,” looks into the way a public subsidy would impact the decisions a family makes when it comes to in-home care for seniors. Often, that care is provided by a family member, for which some states currently offer payment.

The model weighs the income of a caregiver versus the amount spent on in-home care, with one scenario finding that when an adult child caregiver earns more than $28 per hour, they begin to purchase formal care.

In the presence of a government subsidy, the adult caregiver eliminates the purchase of formal care, but will increase the level of informal care he or she provides.

View the study by CESIFO.

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Elizabeth Ecker
Director of Content at Home Health Care News
Curious about all things, when not writing about senior housing topics, Liz is an avid explorer of food. She loves trying new recipes, new restaurants and new ice cream flavors. (Current favorite: Goat cheese with red cherries.)

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