A group of 95 organizations, led by AARP, recently sent a letter to members of Congress, urging lawmakers to pass financial relief for family caregivers with the Lowering Costs for Caregivers Act (S. 1565/H.R. 138).
The bipartisan legislation would allow a family caregiver who has a health savings account, flexible spending account, health reimbursement account, or Archer medical savings account to use account funds for the qualified medical expenses of a parent or parent-in-law, in addition to an individual’s spouse and dependents, as currently permitted by law.
According to the letter, which was signed by ABA’s HSA Council, U.S. family caregivers spend more than $7,200 out of pocket annually, on average, caring for a loved one (about 26% of their income). Nearly half of family caregivers have experienced at least one negative financial impact, such as stopping saving or using up short-term savings, taking on more debt, leaving bills unpaid or paying them late, borrowing money from family and friends, or struggling to afford basics expenditures, the letter said.
“This legislation would be an important step to help alleviate the financial challenges that millions of family caregivers experience every day, particularly those in the ‘sandwich generation’ who are caring for both their parents and their own children,” the signatories wrote.
