Private Health Insurance Bill Shock: What Can Insurers Do to Help?
by Anthony Lowe and Jamie Reid
This paper proposes a simple addition to private health insurance (PHI) policies designed to alleviate the severe financial impact of a diagnosis of cancer.
- Cancer can kill you. What is less well known is that the cost of treatment can destroy your financial well-being.
- Numerous factors drive treatment costs; Medicare pricing, new technology, bureaucratic hurdles, ancillary expenses – travel, medications, prostheses etc. PHI does not cover many of these imposts.
- Out-of-pocket expenses can be higher for patients who have PHI than those who don’t.
- There are regulatory constraints that restrict PHI benefits and a lack of transparency about the extent of likely costs that can create ‘financial shock.’
- Innovative regulatory policy and product design could ease the costs for cancer patients and the health system.