Supporting a Family Member’s Medical Treatment: Financial Planning Tips for Filipinos

Seeing a family member fall ill or require ongoing medical care is not only emotionally and mentally challenging but can also have a significant impact on your budget and finances. Even manageable expenses from hospital bills and follow-up care can accumulate to become a huge cloud of financial burdens looming over your head. It is not shocking yet upsetting that 41% of adults reported having some amount of medical debt in 2022. (KFF: Healthcare Debt in the US) 

This is why planning for such situations in advance is essential, especially in a country like the Philippines, where healthcare is quite expensive and can add up quickly. In this article, we will explore effective ways to support a family member’s medical treatment. But before that, for those of you looking for financial solutions to cover medical costs, you can find help at Finance Fusion. This website can help families identify the most suitable options for their medical needs, reducing monetary burdens. 

Understanding Medical Expenses in the Philippines

Healthcare costs in the Philippines can vary widely, based on the type of treatment, hospital, and location. Below is an overview of typical medical expenses:

1. Hospital Bills

The expenses differ largely in private and public hospitals: 

• Public Hospitals: Treatment in public hospitals like those under the Philippine General Hospital system is quite affordable compared to private options. The drawback here is that it may involve long wait times. Basic hospital fees can range from ₱500 to ₱5,000 per day.
• Private Hospitals: These offer much better amenities and shorter wait times, but come at premium prices. Daily rates range from ₱5,000 to ₱20,000, excluding tests and specialized care.

2. Medications

The medication costs can look something like this: 

• Prescription medication costs depend on the illness and health condition being treated. Generic drugs are affordable, while branded medicines may cost three to five times more.
  • Monthly medication for chronic illnesses (e.g., diabetes or hypertension): ₱2,000–₱10,000.
  • Specialized medication or treatments (e.g., cancer): ₱50,000–₱100,000 or more per cycle.

3. Follow-Up Care

Follow-up care is essential and should not be skipped, it can cost around: 

• Follow-up visits to specialists typically cost ₱500–₱2,000 per session in private clinics.
• Physical therapy, dialysis, or other ongoing treatments can range from ₱1,000 to ₱5,000 per session.

4. Other Costs

There are some additional costs in the treatments, including: 

• Transportation to and from medical facilities.
• Home modifications for mobility or accessibility if required.
• Caregiver fees, if applicable.

Budgeting for Medical Treatment

It is really important to have a financial plan when managing the costs associated with a family member’s medical treatment. You can get started by: 

1. Assess Current Resources

Assessing your current resources is the first step to creating a suitable budget: 

• Insurance Coverage: Check if your family member has any insurance coverage by PhilHealth, a private health insurance policy, or a company-sponsored health plan. PhilHealth offers partial coverage for many treatments but rarely covers the full cost.
• Savings: Find out how much you can allocate from existing savings without depleting emergency funds.
• HMO Plans: Health Maintenance Organizations (HMOs) often provide coverage for specific kinds of illnesses or treatments. You can review their policies to check out the coverage limits and exclusions.

2. Identify the Expected Costs

You can identify the expected costs by asking for an itemized estimate of hospital bills, tests, and medications from your healthcare provider. For ongoing treatments, keep track of monthly costs based on the frequency of visits or procedures.

3. Create a Monthly Budget

Include recurring expenses such as follow-up care, medications, and transportation. Try to look for areas where you can cut discretionary spending to allocate more funds for medical needs.

4. Explore Financial Support Options

If your resources are insufficient, you can consider alternative funding sources. A great platform for that is at Finance Fusion, they can guide you through loans and financial assistance programs suitable for medical purposes.

Funding Medical Expenses

If you require additional funding, you can consider the following options: 

1. PhilHealth

PhilHealth offers only partial coverage for inpatient and outpatient treatments, including dialysis, chemotherapy, and surgeries. While it can help you cut costs, it often doesn’t cover the full bill, especially for major treatments.

2. Private Health Insurance

Private health insurance plans offer more extensive coverage than PhilHealth, but they usually come with higher premiums. Review your policy thoroughly to check if it covers your family member’s specific medical needs.

3. Loans

Loans can be a helpful resource to bridge the gap between available resources and medical expenses. Consider the following options:

• Personal Loans: These are typically flexible and can be used for a variety of medical needs, including hospital bills and medications.
• Health-Specific Loans: There are various banks and financial institutions that offer loans tailored for medical expenses. These may come with lower interest rates and longer repayment terms.
• Platforms like Finance Fusion:  Finance Fusion reviews different loan options, helping you choose the best one for your situation.

While we are on the topic, the medical loans market is on the rise and is projected to grow at a CAGR of 8.2% from 2024 to 2032 and reach $320.3 billion by the end of the forecasted period. 

4. Government Assistance Programs

There are many government assistance programs that can help you cover medical expenses, two popular ones are: 

• The Department of Social Welfare and Development (DSWD) offers medical assistance programs for low-income families.
• PCSO (Philippine Charity Sweepstakes Office) provides financial aid for hospitalization and treatments like dialysis or chemotherapy.

5. Crowdfunding

Families can also raise funds through online donations on platforms like GoFundMe or local options like GavaGives. Sharing your story on social media can help gather support from friends, relatives, and even strangers.

6. Family and Friends

Borrowing from relatives or close friends can be a quick way to access funds, and it can also save you from formal interest rates or stringent repayment schedules.

Managing Medical Expenses Effectively

The following measures can prove to be quite effective for managing medical expenses effectively. 

1. Opt for Generics

If possible, choose generic medications over branded ones. They are just as effective and can cut medication costs significantly.

2. Explore Public Hospitals

For families with limited budgets, public hospitals offer quality care at a fraction of the cost of private facilities. You might have to wait in queues, but the treatment will be just as effectual. 

3. Negotiate with Healthcare Providers

Some hospitals and clinics also allow installment payments or offer discounts for cash payments. So, don’t hesitate to discuss your financial constraints with them.

4. Monitor Bills Closely

Always keep track of all medical expenses to avoid overcharges or unnecessary procedures. Request itemized bills and clarify any questionable charges.

5. Plan for Follow-Up Care

Arrange transportation, schedule appointments in advance, and ensure your family member has the necessary support at home, this way you can minimize additional costs.

Preparing for Future Medical Needs

Medical emergencies can happen unexpectedly. Building a financial safety net in advance can help you manage future expenses more effectively, you can do it in the following manner: 

1. Build an Emergency Fund

Aim to save three to six months’ worth of expenses in a dedicated emergency fund. Contribute a small amount regularly to build this fund over time.

2. Invest in Comprehensive Health Insurance

Regularly upgrade your health insurance coverage or purchase additional plans to cover critical illnesses or high-cost treatments.

3. Explore Preventive Healthcare

Encourage regular check-ups and a healthy lifestyle to catch potential health issues early, this will help reduce the likelihood of costly treatments.

DO YOU KNOW? 
According to the  Centers for Medicare & Medicaid Services, in the U.S., healthcare spending accounts for 17.7% of the Gross Domestic Product (GDP), or the total value of goods and services produced by the entire nation for the entire year.

Success Stories: Families Who Overcame Medical Challenges

Many families in the Philippines have successfully navigated the financial struggles of helping a loved one’s medical treatment. By combining resources, exploring financial tools like those reviewed at Finance Fusion, and making informed decisions, they were able to provide quality care without compromising their financial stability.

Final Thoughts

Supporting a family member’s medical treatment can be a challenging journey as it requires not only emotional strength but also strategic financial planning. Whether it’s managing hospital bills, purchasing medication, or ensuring consistent follow-up care, clearly understanding your options available and planning ahead can make all the difference.

Leveraging resources like Finance Fusion to explore loan options, tapping into government programs, and making practical financial decisions can help you ensure your loved one receives the care they need without crushing or overwhelming your family’s finances. With careful planning and the right support, you can navigate these challenging times and focus on what truly matters: the health and well-being of your family.