Private Sector (6.5%) = (0.5%) for error in Preliminary Damage Assessment which is dependent upon the specific cost associated with the request. Typically this can be upwards of $6.5M for a large county.

Although this is spoken of as Reimbursement, a State, County, Municipality or local business can go years without actually being reimbursed as it must first flow down the same path. In general, all expense occurs up front and if the documentation is not correct, there remains the possibility to be ineligible for reimbursement. For those who have been reimbursed, FEMA can request for a removal if they find deficiencies and an organization will have to remit payment for their error. Hurricane Andrew struck Florida in 1992 and it took 15 years to pay out. A few organizations just closed out Hurricane Katrina costs in the last two years. This has uniquely created companies such as Tidal Basin and Bergeron who specialize in Disaster Cost Estimation. I have seen very few organization who have not engaged in a professional service that uniquely understands every FEMA form become successful during the reimbursement process. This included Category A - G expenses. Activation of hurricane RIDE-OUT teams and preparatory actions can easily top 5 million for a health system, let alone other major business that are unable to completely close during a disaster. My current health care organization becomes a Safe Area of Refuge under the Evacuation Assistance Program and we are required to shelter individuals who need access to electricity and oxygen. The initial cost is ours to bear alone, which in this situation, was $6.5M excluding the massive sheltering operations. We had patrons for a 2 weeks who could not return home and were not required to leave, even if we had returned to normal operations.

Why is the problematic?