Cancer coverage

Cancer coverage is a supplemental insurance policy that pays a fixed cash benefit for covered cancer diagnoses and treatments, according to the National Association of Insurance Commissioners. Cancer coverage plans in the US pay lump-sum benefits–often between $5,000 and $100,000–directly to policyholders after confirmed diagnosis by licensed physicians.

Cancer coverage covers out-of-pocket expenses such as co-pays, deductibles, transportation, lodging, and lost wages not covered by major medical insurance. Most cancer coverage policies exclude pre-existing cancers diagnosed within 12 months before enrollment, as specified in summary plan descriptions by insurers like Aflac and Colonial Life.

People buy cancer coverage to offset high treatment costs–average annual costs for new cancer drugs reached $150,000 in 2022, as per the American Society of Clinical Oncology. Cancer coverage only covers cancer-specific claims; it does not cover other critical illnesses such as heart attack or stroke.

Group cancer coverage options are offered by employers or unions through voluntary benefits programs, while individuals can purchase stand-alone policies directly from insurers. The monthly premium for cancer coverage ranges from $10 to $50 depending on age, smoking status, state, and benefit level, according to eHealthInsurance data from 2023.

Waiting periods in cancer coverage policies typically last 30 days after policy start date before benefits become payable, according to a report from YourInsurance.info. Claims under cancer coverage require pathology report documentation and completed forms provided by doctors or treatment facilities.

Cancer coverage payouts do not affect major health insurance claims or deductibles since they function as separate financial support mechanisms.