Bankruptcy for health costs - share your story

[wellyes]

My FIL is 59 and dying. He has health insurance, but it has a benefit limit of $50,000 / year. He is in the hospital frequently & he's used that amount up already. Now he has the opportunity for a bone marrow transplant which is his only hope of survival -- any maybe even recovery. Even without the transplant (and chemo and radiation and recovery etc) he will almost certainly face bankruptcy for his coming hospital bills.

So, first, a PSA: put money into protected assets like retirement accounts and 529s. And enjoy life NOW. Because you never know. He was completely healthy 2 years ago and was thrilled to be starting his retirement. Poor health can strike anyone and it changes everything if it strikes you or your family.

And I'd also love to hear anyone else's stories if your family has BTDT or has any advice.

[jenny]

Wellyes, I'm sorry to hear about your FIL.

Was he diagnosed with cancer? Cancer is one of the biggest causes of bankruptcy in this country. If he was diagnosed with cancer, there are a few organizations out there that might be able to help your family.

I hope and pray President Obama can get serious health care reform in this country because all of us are hanging on by a thread with the current state of health care.

[kayte]

I hope and pray President Obama can get serious health care reform in this country because all of us are hanging on by a thread with the current state of health care.

YES!!!!!!

To OP- I am so sorry for your family. I don't have any advice, but know you will be in my thoughts.

[Ceepa]

This thread is not the place for politics so I'll say OP, although I don't have experience with this situation I'm sending P & PT to your FIL.

[o_mom]

MIL would have been bankrupt if she had lived. As it was, she went out with tens of thousands in CC debt and probably ten times that in medical. Luckily it all went away with her death, but we were pretty much limited to the cash she stashed under the mattress to pay for her burial, which wasn't nearly enough. We have the means, in that our kids will not go without shoes or food, to pay for it, but we could have used that money for college funds or other savings.

[kayte]

This thread is not the place for politics

Our healthcare system and the fact that so many family go bankrupt in our country from healthcare expenses has been around for decades--through lots of Dems and Republicans. Stating that is long overdue is not political, it is fact. I don't think either remark made so far was political. I don't care if the easter bunny fixes it, I am just praying it's soon, because it affects too many lives in our country.

There is no reason the OP should have to be worry about money, she and her family should be worrying solely on her FIL getting better.

[maylips]

My FIL is 59 and dying. He has health insurance, but it has a benefit limit of $50,000 / year. He is in the hospital frequently & he's used that amount up already. Now he has the opportunity for a bone marrow transplant which is his only hope of survival -- any maybe even recovery. Even without the transplant (and chemo and radiation and recovery etc) he will almost certainly face bankruptcy for his coming hospital bills.

So, first, a PSA: put money into protected assets like retirement accounts and 529s. And enjoy life NOW. Because you never know. He was completely healthy 2 years ago and was thrilled to be starting his retirement. Poor health can strike anyone and it changes everything if it strikes you or your family.

And I'd also love to hear anyone else's stories if your family has BTDT or has any advice.

This is EXACTLY the kind of story that happens over and over in our country. The problem is, there is no "magic bullet" that will help everyone at no cost to others and without some people milking the system. It will happen. But I'd rather have a system where some take advantage of it if it helps others like the OP's FIL to concentrate on his health and not worry about leaving his family in tons of debt (or to even think that if he lives, his reward is hundreds of thousands of dollars of debt).

[egoldber]

My mother is essentially bankrupt. She had a long hospital stay earlier this year and it basically took every dime of her savings. She is in debt to the hospital and pays them a trifle each month. But it's basically nothing that she can realistically ever pay back.

My brother and I both send her money each month, but other than that she lives on her meager social security (~700 a month) which is before she has to pay for her Medicare Part D (the new medications part of Medicare) plan and her Medicare health insurance supplement. Almost a thrid of her income is taken up with health insurance. :( But otherwise she could not afford her medications at all.

When my father died in 2005, he had had several lengthy hospital stays in the year before he died, including one of almost 21 days. His Medicare did pay for most of that, but the several thousand dollars leftover still took all the savings they had up to that point.

They raised 4 kids on never more than $25K a year and still managed to pay off their house, never had any credit cards and still had some savings. So it's not like they were spendthrifts. They were just a hardworking blue collar family. There's a million other families just like them in this country.

[Ceepa]

Our healthcare system and the fact that so many family go bankrupt in our country from healthcare expenses has been around for decades--through lots of Dems and Republicans. Stating that is long overdue is not political, it is fact. I don't think either remark made so far was political. I don't care if the easter bunny fixes it, I am just praying it's soon, because it affects too many lives in our country.


Obviously I disagree with you but again, that's not relevant to the OP. :shrug:

[BabyMine]

Between DS1 and my medical bills we are going through bankruptcy now. We even put money into a FSA account and still came out short. I am so very sorry to hear about your FIL.

[sste]

My advice is to talk to as many non-profit types as you can (e.g., does american cancer society have a specialist on bankruptcy? Can they refer you to someone? Ditto AARP, any legal aid services, etc. If that doesn't work then you may need to consult with a bankruptcy attorney.

My understanding is that there were revisions to the bankruptcy laws that make it more difficult to declare bankrutpcy/clear one's debts. So, you may need to be particularly strategic in figuring out how to manage this . . .

So sorry to hear about this.

[Davids-Coco]

I agree to start strategizing. Talk to non-profits; talk to the hospitals; talk to the doctors. Some hospitals will work with you and give you lower rates as will the doctors. Grants from non-profits can remove some financial strain too.

All too often, the problem is not just coverage but that you are forced to wait too long for treatment... so it sounds like he at least has treatment services available for him! That is good.

[niccig]

I'm sorry this is happening to your FIL. He's sick and dying and on top of that he has to worry about paying the medical bills. That's not right.

I agree with others about calling around to non-profits etc to see if there is any financial assistance.

It's one of my biggest fears that one of us will get sick and despite health insurance, we won't be able to pay the bills. DH tells me we only have to worry about him, as DS and I are Australian citizens, we could re-establish residency there and use their medical system. But I still worry. I've seen the bills from my simple surgery last year, we could go through our life-time benefit very quickly if DH gets a serious illness.

I hope your family can find a way to deal with all of this.

[egoldber]

we could go through our life-time benefit very quickly if DH gets a serious illness.

This is the thing a lot of people forget about with health insurance. Many plans have a low lifetime cap. And even a $1 or $2 million cap doesn't last as long as you would think with an illness like cancer or any extended hospital stay (especially in a critical care unit of any sort).

[niccig]

This is the thing a lot of people forget about with health insurance. Many plans have a low lifetime cap. And even a $1 or $2 million cap doesn't last as long as you would think with an illness like cancer or any extended hospital stay (especially in a critical care unit of any sort).

A colleague at DH's at work is experiencing this. He was in a car accident and car caught on fire. He was very lucky that a witness pulled him from the car. But he has 3rd degree burns on back and arms. He's been in burn unit for 2 weeks and they expect several more weeks at the very least. He's been told he has years of rehab in front of him - one arm is very badly hurt. He has the same insurance as we do, and people were worried that he'll hit the life-time cap. But it turns out his Dad is CEO of a national grocery chain, and his Dad is going to pick up anything the health insurance won't cover or when he runs out of coverage. So, he is going to be OK both physically and financially.

And it's why I want to have a big emergency fund as there is no CEO in our family to help out.

[AnnieW625]

Just sending good thoughts and healthy vibes to your FIL.

[niccig]

Between DS1 and my medical bills we are going through bankruptcy now. We even put money into a FSA account and still came out short. I am so very sorry to hear about your FIL.

I'm sorry you're going through this.

[wellyes]

Thanks for the good wishes, all. I know that the hospital social worker is going to look at funding options for them so hopefully they'll be able to come up with something.

I honestly don't expect my FIL to be with us for much longer.... but my MIL is is good health probably need taken care of for the next 20+ years. She is in her 60s and I does not have any kind of professional background. His illness will definitely eat all their savings and may put them into bankruptcy. We live in a very high cost of living area and moving isn't an option (in addition to taking care of him full time she is also caretaker to other elderly relatives).

They "played by the rules" for their whole lives and had no debt. But now she's looking at being broke for all her retirement years. We will probably have to support her which will impact my plans/hopes of becoming a SAHM. Basically, this sucks financially - not to mention the fact that DD is very likely to lose her grandfather.

I didn't post looking for political opinions but I am curious to hear what people who are opposed to universal health care / single-payer healthcare would suggest for a situation like my FIL's. I ask respectfully - I honestly have a hard time grasping the viewpoint and would like to hear some other ideas. To me, a major illness should not mean financial ruin but I can't see how that could change without a huge overhaul to the system and government intervention.

[BabyMine]

I'm sorry you're going through this.

Thank you.

[justlearning]

This is the thing a lot of people forget about with health insurance. Many plans have a low lifetime cap. And even a $1 or $2 million cap doesn't last as long as you would think with an illness like cancer or any extended hospital stay (especially in a critical care unit of any sort).

My son was diagnosed with cancer when he was 1 1/2 years old. Fortunately, our life insurance policy has no lifetime cap. If it did, he could easily hit the cap while still a young child (if the cancer returns). It's amazing how quickly his medical costs add up.

To the OP, I am so very sorry about your FIL and his financial situation. I can't give you any advice or BTDT but I do hope that somehow you find a way to help your in-laws during this time.

[infocrazy]

Is your FIL a veteran? We have gotten a lot of funding from the VA for my grandfather. He is of course WAY older (WWII vet) but I was surprised at what they are covering for him...all just general health though for a 96 yo.

[jenny]

My son was diagnosed with cancer when he was 1 1/2 years old. Fortunately, our life insurance policy has no lifetime cap. If it did, he could easily hit the cap while still a young child (if the cancer returns). It's amazing how quickly his medical costs add up.

To the OP, I am so very sorry about your FIL and his financial situation. I can't give you any advice or BTDT but I do hope that somehow you find a way to help your in-laws during this time.

you're really lucky that your insurance has no lifetime cap. Hitting $1 million is easy for childhood cancer survivors who have long-term issues to deal with. Unfortunately, one day, your son won't be able to be on your insurance b/c he'll be an adult, and he's probably going to have to deal with the stigma of a "Pre-existing condition" with insurance companies.

This is why I think we seriously need an overhaul in this country for health insurance. I think the system we currently have is only good if you don't need health insurance b/c God forbid you get sick, you are basically ruined financially.

Wellyes, if your FIL has cancer there are a few organizations that can help your family out. Try the www.patientadvocatefoundation.com, http://patientpartnerships.krambs.com, www.cancerfac.org and www.cancercare.org

I'm sorry your family is going through this b/c what you're going through is something any of us can experience today.

[wellyes]

Thanks for the tips on veteran's health benefits and cancer resources..... neither apply to my FIL, unfortunately, but hopefully someone reading this thread will get some good out of the suggestions.

[strollerqueen]

Thanks for the good wishes, all. I know that the hospital social worker is going to look at funding options for them so hopefully they'll be able to come up with something.

I honestly don't expect my FIL to be with us for much longer.... but my MIL is is good health probably need taken care of for the next 20+ years. She is in her 60s and I does not have any kind of professional background. His illness will definitely eat all their savings and may put them into bankruptcy. We live in a very high cost of living area and moving isn't an option (in addition to taking care of him full time she is also caretaker to other elderly relatives).

They "played by the rules" for their whole lives and had no debt. But now she's looking at being broke for all her retirement years. We will probably have to support her which will impact my plans/hopes of becoming a SAHM. Basically, this sucks financially - not to mention the fact that DD is very likely to lose her grandfather.

I didn't post looking for political opinions but I am curious to hear what people who are opposed to universal health care / single-payer healthcare would suggest for a situation like my FIL's. I ask respectfully - I honestly have a hard time grasping the viewpoint and would like to hear some other ideas. To me, a major illness should not mean financial ruin but I can't see how that could change without a huge overhaul to the system and government intervention.

I'm sorry, and you're right, it does suck. And sorry the financial burden is going to be shouldered by you. The same thing happened to my Grandma. She had a lot of money, and a relatively minor accident. But a long recuperation and physical therapy blew through all of it. She really couldn't understand what happened to it all, and was convinced family members stole it from her. It was so sad.

[ellies mom]

This is the thing a lot of people forget about with health insurance. Many plans have a low lifetime cap. And even a $1 or $2 million cap doesn't last as long as you would think with an illness like cancer or any extended hospital stay (especially in a critical care unit of any sort).
Another thing people forget is that because health insurance is usually tied to your job if your lose your job due to an illness or accident, you lose your coverage. I worked with a guy who went out on disability because he needed a heart transplant. He was very lucky because he got a heart pretty quickly but because he wasn't ready to come back when the 12 weeks was up, he lost his job and health coverage. Sure there is COBRA but that is expensive and doesn't last forever and now he has one heck of a pre-condition. I lost touch with him so I don't know how it turned out but I was seriously disgusted with the company.

[BabyMine]

Another thing people forget is that because health insurance is usually tied to your job if your lose your job due to an illness or accident, you lose your coverage. I worked with a guy who went out on disability because he needed a heart transplant. He was very lucky because he got a heart pretty quickly but because he wasn't ready to come back when the 12 weeks was up, he lost his job and health coverage. Sure there is COBRA but that is expensive and doesn't last forever and now he has one heck of a pre-condition. I lost touch with him so I don't know how it turned out but I was seriously disgusted with the company.


OMG. I guess I was lucky. When I went out on LTD my company paid for insurance for 36 months. They kicked him when he was down. I hope he is ok.

OP what about Medicaid?

[KBecks]

I'm sorry wellyes. It's very sad to face the possibility of losing your loved one and your kids' grandfather and so young..... it's a very difficult situation and my heart goes out to your FIL and your family.

[mytwosons]

I'm so sorry your family is going through this. I hope you are able to find some help and your FIL can find some peace and not stress about the financial situation.

I know several families who have declared bankruptcy because of the bills for their children with autism. In many states, health insurance is allowed to exclude autism treatments and people then mortgage their house to the hilt and max out their credit cards in order to help their children. It's not unheard of for families to spend $50k per year. We are lucky because my DS with autism lost his diagnosis after about 2 years and $60k. We still spend a significant amount of money on his supplements and medication, but I don't know what we would do if he still needed all the therapies and additional medical help.

Another thing people might want to look into is long-term care insurance. My parents have both used their policy benefits and I'm very thankful they purchased those policies!