Don't Let A Healthcare Crisis Become A Financial Disaster
By Julie Dawson
Summer 2005
It can happen to anyone at any time - a healthcare emergency in one's own family. Learning from one family's experience may help others prepare for such a horrifying ordeal.
After an uneventful pregnancy and easy delivery, Marine Staff Sergeant Rob Gilbert and his wife Sue (not their real names but a true story) were counting their blessings at the birth of their second child, Kevin. Born a few days before Thanksgiving 2004, everything seemed perfect.
Then, at eight days old, Kevin suddenly stopped nursing and started to slip into a gradual lethargy. By the next day, Kevin's body temperature was dropping and his color was turning blue. His parents rushed him to the hospital.
After a long night of waiting, the Gilberts were told that Kevin was born with severe heart defects and would be flown immediately to the Lucille Packard Children's Hospital at Stanford University in Palo Alto, California. Surgeons explained that he would require at least one initial surgery and possibly more, and recovery would last between three to six weeks.
Trusting that Kevin was well cared for, the Gilberts' thoughts turned to how they would take care of themselves while they waited in California. They were relieved to know that TRICARE would cover all medical expenses, but the immediate needs of food, lodging, gas and other expenses would need to be paid out-of-pocket.
Since the Ronald McDonald House (the military has the Fisher House equivalent at many of its large hospitals) initially was full, they had to pay for a discounted hotel room at $50 a night for a few nights, then $10 a night at Ronald McDonald for the rest of their stay. Lodging for four weeks cost about $500.
Meals were the largest day-to-day expense since, unlike military hospitals, the Stanford cafeteria food was not subsidized. Food alone for four weeks totaled more than $1,600.
The Gilberts enjoyed having Anna, their four-year-old daughter, with them, but she added to their expenses and her restlessness added to their stress. All the usual bills continued to arrive at home, and the Gilberts began to use their credit cards heavily.
Frugality is a way of life on an E-6 salary, but the Gilberts had been saving in recent years. Their modest savings was for "emergency" use; they never imagined their emergency would be a life-threatening crisis.
Staff Sergeant Gilbert's rank placed him in a higher-earning bracket, thus decreasing the aid he could receive. Take note: Higher-ranking personnel are assumed to earn more and save more, so they may be eligible for less aid and thus must prepare accordingly.
Military families have a number of aid sources, but help is hard to find at a civilian hospital far from any military base. By the time the Gilberts requested aid from a relief agency, a few weeks had passed and it was no longer considered an "emergency" situation. Instead of a grant, help was offered in a loan that would need to be repaid. Other assistance organizations assured them that certain expenses would be reimbursed within two weeks of submitting the receipts but, 10 weeks later, the Gilberts are still waiting.
Meanwhile, the bills are coming due on their credit cards and their savings account is nearly empty. They also face additional ongoing expenses in prescription co-pays of $100 per month, driving to doctor's appointments, and buying special formula, bottles and therapy items.
As if all that weren't enough, the Gilberts were stunned to learn that TRICARE never received an ambulance bill from the first day of Kevin's ordeal. Since the bill had not been paid, the matter was referred to a collection agency and reported to the credit bureaus as delinquent.
The Gilberts learned that they should have saved a more substantial chunk of money - thousands, not hundreds - in an accessible account, and that money tied up in investments may not be available to use in an emergency.
Qualified families should join the military's Exceptional Family Member Program (EFMP)(search for EFMP) to help find resources and obtain advice on the financial implications of special healthcare needs. EFMP is available to families of all military services, and most military installations have an office on site. Membership is not required, but it is encouraged for qualified families since EFMP status can affect housing availability, finances, benefits, duty station assignments, healthcare and special needs access, and more. EFMP's services are offered at no cost to members.
The worst is over for little Kevin, but the Gilberts must now begin to rebuild their financial health. They know that life is uncertain, and that it is wise to hope for the best and - well in advance - prepare for the worst.
# # #
Julie Dawson is an editor for WordCrafters and teaches the Navy-Marine Corps Relief Society's "Budget for Baby" program at the Mountain Warfare Training Center, Bridgeport, CA.
