As Colorado’s older adult population continues to rapidly grow, understanding the true cost of non-medical in-home care is increasingly important. The true cost of care goes beyond aggregating the current market cost of care to examine what the cost of care actually is. That includes accounting for paid caregivers receiving a living wage and a robust set of benefits and ensures that providers can cover their overhead expenses. The true cost of care also accounts for the effects on unpaid caregivers including the health impacts, lost wages, and out-of-pocket costs. We have found that when accounting for all of the true costs of providing care, the price tag is just over $9 billion annually in Colorado.

Investing in care for older adults is essential for improving health outcomes for recipients and enhancing the economic mobility and wellbeing of both paid and unpaid caregivers. Yet, current investments in caregiving for older adults falls short of meeting the true costs associated with providing care. The gap in public investment in care strains our paid caregivers with low wages, relies on unpaid caregivers to step in without adequate support, and disproportionately impacts those in rural parts of our state.

This report examines the state’s current investment levels and the Home Care Cost Model’s findings on the true cost of care, and highlights the disparities in public funding for older adult care across the state. By understanding the investment necessary to more adequately support in-home care, we can better advocate for and invest in comprehensive solutions that address the needs of older adults who need care and their caregivers.