Pay home health care workers as part of stimulus plan

Interesting post from Health Beat Blog today–here’s an excerpt:

Now that the economy is in decline with massive job losses, considerthe economic effect of providing well earned money to the 46 millionpersonal care providers (31 million full-time equivalents). Payingminimum wages to family and friends of the disabled for theircaretaking time ($7.25 per hour beginning July 2009) would cost about$360 billion per year (46 million health aides x 21 hours per weekaverage per caregiver x 52 weeks/year x $7.25 per hour for wages plusbenefits = $364 billion).

A successful model program exists.For people with Medicaid insurance, a pilot project of giving disabledpeople money to pay for their own caregivers has been a huge success.Investigators at Mathematica Policy Research, Inc. found that, compared with services from traditional home care agencies, Medicaid’s “Cash and Counseling” program gave disabled people and their caregivers improved quality of life and resulted in less use of nursing homes.

These31 million full-time equivalent paid jobs could be created immediately.This $360 billion spread broadly (average yearly income: about $7,800for 46 million people) would be what the doctor ordered to immediatelyhelp counteract massive job losses throughout most economic sectors.Much of the money would be immediately returned to taxpayers, becausepaying these health care workers would mean they require less publicassistance. The collateral economic benefit of the money these workerswould spend for necessities would have an infinitely greater multipliereffect in creating more jobs than lavishing more billions on banks orenacting the $800+ billion proposed stimulus bill. It would addressRepublican concerns that the stimulus create jobs immediately andDemocrat priorities that the money go to help the poor.

Read the full post here:  http://www.healthbeatblog.com/2009/02/pay-health-care-aides-to-jumpstart-the-economy.html