Insurance To Cover Critical Illnesses Becoming More Popular, But May Prove Costly
As consumers find their general health plans have higher deductibles, they are increasingly turning to policies that cover specific -- and expensive -- illnesses, such as cancer. But consumer advocates question the cost. Also, a look at cancer treatment expenses and surprise bills that some people receive after getting out-of-network care.
The New York Times:
Insurance For Critical Illness May Add Security, But At A Cost
It’s often pitched as an insurance policy for your health insurance policy.The product, known as critical illness insurance, promises to pay a lump sum, anywhere from $5,000 to $100,000, after someone receives some sort of dreaded diagnosis, like cancer, a heart attack or a stroke. And the coverage is not terribly expensive; if you are in your 40s, it might cost $25 to $50 a month. These policies have become increasingly popular, partly because they are being marketed as a way to provide another layer of financial support now that consumers are shouldering an ever-rising share of medical expenses out of pocket. ... But some consumer advocates and health policy analysts have questioned whether these policies are worth the expense, partly because they are so narrowly focused. (Bernard, 3/19)
Earlier KHN coverage: More Employers Offer Plans That Provide Lump Sums For Critical Illnesses (Andrews, 1/5)
The Richmond Times Dispatch:
For Many, Cancer Sets Off Financial Crisis
Cancer is a health crisis that for many sets off a financial crisis. In a study done by Virginia Commonwealth University School of Pharmacy researchers, nearly one-third of cancer survivors reported that their illness had caused financial problems. The patients who reported the most financial problems also reported more physical and mental health problems. Having health insurance was not a guarantee that a person would not face money problems. (Smith, 3/18)
USA Today/The Tennessean:
'Surprise Bills' Shock Those Who Choose In-Network Care
Because patients get billed by individual providers, a patient can go in-network but still get hit with an out-of-network charge. ... The inadvertent out-of-network bills are called “balance billing” because patients pay the difference between the insurance plan's out-of-network benefits and the provider's rack-rate charge, which is often considerably higher than the negotiated amount with an insurer. Some insurance plans offer little to no out-of-network coverage. Hospitals encourage the doctors to accept the same insurance plans and networks as the hospital — but it’s not required. (Fletcher, 3/18)
