Cancer Insurance Facts: 5 Things You Should Know
Nobody wants to hear the words “You have cancer.” But approximately 40 percent of men and women in the U.S. will develop some form of cancer during their lifetime, and cancer is the second most common cause of death in the U.S., according to the American Cancer Society.1
Yet few people realize the extent of the costs involved in cancer treatment, or understand that basic health insurance doesn’t cover many of these costs. While almost no one likes to think about cancer and the havoc it can wreak in the lives of patients and their families, the fact that cancer affects so many of us is a good reason to understand cancer insurance and how it can help offer financial protection.
Here are five things you should know about cancer insurance.
1. Cancer insurance can help supplement health insurance
Cancer insurance is not intended to take the place of the benefits provided by your primary health insurance. The purpose of cancer insurance is to help you pay for some of the expenses your primary health insurance policy doesn’t cover.
2. What cancer insurance does and does not cover varies by plan
To understand cancer insurance, you first need to understand the costs associated with cancer treatment that you may not be aware of. Some of the costs and expenses that a cancer patient might incur include:
- Lost income due to taking time off work for treatment
- Out-of-network treatments when necessary
- Health insurance deductibles and copays
- Radiation therapy, chemotherapy or immunotherapy
- Travel (sometimes long distances) to receive treatment
- Inpatient hospital stays
- Hospice care
Coverage can vary from one cancer insurance plan to another, so it’s important to check with plan providers to see exactly what their plan does and does not cover.
3. There are typically two types of cancer insurance
Cancer insurance was not designed to replace traditional health insurance, but to complement it by paying for treatment-related expenses not covered by your policy. There are two common ways cancer insurance policies work:
- With some plans, if you’ve been diagnosed with cancer you’ll receive a single lump-sum payment, which you can use for both medical costs and normal living expenses. You essentially use the money any way you choose to help cover lost wages, deductibles and copays.
- Cancer expense policies help provide coverage for cancer-related expenses above and beyond what your primary health insurance policy covers. What is actually covered can vary widely. Be sure to check that any cancer policy you’re considering doesn’t have the same coverage exclusions as your primary health insurance policy.
4. Eligibility for cancer insurance
In some cases, people who have previously been diagnosed with cancer are ineligible for cancer insurance. And usually a preexisting condition (for example, HIV) that predisposes you to cancer will render you ineligible.
5. How to know if cancer insurance is right for you
Consider your family history and personal circumstances. If you can answer “yes” to any of the following questions, cancer insurance may make good sense.
- Does your family have a history of cancer?
- Do you have a family and want some peace of mind that if you were to get cancer, monthly bills can be paid?
- Are you an individual worried about the costs of a high-deductible health insurance plan?
- Are you a small business owner concerned about operations continuing if you are unable to work full time?
Learn more about the basics of cancer insurance and whether or not it’s right for you.
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