Monetary Valuation of Primary Family Caregivers for Hospice Care in Taiwan: An Application of Hicks Compensatory Variation in Income

Objective: This paper estimates the monetary value of the loss of well-being by primary informal caregivers who provide hospice care to their family members. Background: Taiwan is rapidly becoming an aging or even aged society. Authorities are planning to establish a long-term-care insurance system which will provide both in-kind (hospital or nursing home caring) and cash benefits (subsidies to community or home caring) services. Previous studies on the subject had focused only on the physical costs of informal caregivers. Methods: We use Hicks Compensatory Variation Model to assess the monetary value necessary to maintain the same level of well-being when primary family caregivers are asked to provide an extra hour of caring. In so doing we cover the physical, mental and social burdens of the caregivers. Data from a nation-wide survey on primary family caregivers of hospice in Taiwan are used for linear regression analyses. Results: The time length of providing caring, having a job, and the degree of intimacy between the caregivers and the caretakers are identified to be positively associated with the loss of well-being of the primary family caregivers. Averaged caring hour per day is 14 hours. It would require to pay the caregivers 0.71% of their monthly income (based on 180 working hours per month) for an extra hour of caring.