An increasing number of Australians under 50 are being diagnosed with cancer, as reported by the Australian Institute of Health and Welfare.
Although survival rates for common cancers in individuals in their 30s and 40s have increased, the cost of treatment can reach thousands.
The AIHW cancer report additionally discovered:
- Cancer predominantly affects older Australians, with projections indicating that by 2024, 88% of cancer cases will be diagnosed in individuals aged 50 and above.
- There has been a notable rise in colorectal and thyroid cancers among those in their 30s.
- For individuals in their 40s, there has also been an increase in breast, prostate, kidney, colorectal, and thyroid cancers.
The insurance giant Zurich has released a 2024 report detailing the costs of care for prevalent cancers, including out-of-pocket and lifetime recovery expenses.
For bowel cancer – which is one of the top five most commonly diagnosed cancers in Australia* – the average out-of-pocket cost in the first 12 months after diagnosis is $3,220.
If you believe that doesn’t sound too bad, think again. The lifetime of bowel cancer, including all-up appointments, medication, and anything else you might, is $60,000
The costs with lung cancer are. average out-of-pocket cost in the first year for stage 1-3 is $3840, while stage 4 slightly lower at $730. However, the average lifetime cost of lung cancer is a staggering $85,420.
How does cancer impact your finances?
Setting aside the emotional, physical, and mental turmoil cancer can cause for a diagnosed individual and their family, as indicated by the above figures, cancer treatment and care are expensive.
You might need to take time off work, which can deplete your emergency funds or life savings. According to Zurich’s Cost of Care report, over 60% of patients diagnosed with melanoma skin cancer reported that their treatment impacted their ability to work.
The expenses associated with cancer accumulate over time. As a general guide, here’s what you might face in the first year:
- Treatment / surgery: Going private can cost thousands. Opting for the public system could save you money. In the public system, the hospital will select your doctor, and most of your treatment or care will not incur charges.
- Scans and tests: Without private health insurance, you can typically have these conducted at a public hospital for free, but you might have to wait for an appointment for the initial scans/tests.
- Specialists fees: Even with top health insurance plans, expect to pay a gap fee as a private patient.
- GP visits: Regardless of having private health insurance, there are Medicare gaps to cover.
Note: The cost of cancer does not stop in remission. You may need ongoing physiotherapy, regular follow up scans, medical appointments and prescription medication for the rest of your life.
Importance and Role of Private Health Insurance and Trauma Insurance in Cancer Care
1. Access to Timely Treatment
Private health insurance often provides quicker access to specialists and treatment options for cancer patients. This can be crucial in a disease where early intervention can significantly improve outcomes.
2. Comprehensive Coverage
Private health insurance plans typically offer a wider range of services and treatments, including advanced therapies, experimental treatments, and supportive care that may not be covered by public health systems.
3. Choice of Providers
Patients with private health insurance usually have the flexibility to choose their healthcare providers, including oncologists and treatment centers, which can lead to better personalized care.
4. Reduced Financial Burden
Cancer treatment can be expensive, and private health insurance helps mitigate the financial burden by covering a significant portion of the costs associated with diagnosis, treatment, and follow-up care.
5. Trauma Insurance and Financial Security
Trauma insurance can provide lump-sum payments upon diagnosis of cancer, offering financial support for patients. This can help cover out-of-pocket expenses, lost income, and other costs associated with treatment and recovery.
6. Enhanced Support Services
Many private health insurance plans include access to additional support services such as counseling, nutrition advice, and rehabilitation programs, which can be essential for holistic cancer care.
Private health insurance and trauma insurance play a crucial role in cancer care by providing access to timely and comprehensive treatment, reducing financial burdens, and supporting overall patient well-being. Their importance cannot be overstated in the fight against cancer.
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Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Insurance (aka: Hippo Wealth), with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at http://www.hippoinsurance.com.au
