Can You Get Cancer Insurance for Employees in a Group Plan?

Providing extensive healthcare coverage has become essential for employers who wish to attract and retain the best talent. With medical expenses continuing to increase, companies are progressively exploring additional insurance alternatives, such as cancer insurance.

This raises an important question for many employers: Can You Get Cancer Insurance for Employees in a Group Plan? The answer is yes, and it provides several advantages for both employers and employees.

This article discusses how group cancer insurance functions, its benefits, and how to effectively include it in your employee benefits package.

What Is Cancer Insurance?

Cancer insurance is a form of supplemental health insurance aimed at helping with the expensive costs of cancer treatment.

Unlike regular health insurance, which might not pay for all cancer-related costs, cancer insurance offers targeted financial assistance for diagnosis, treatment, travel, and recovery.

Policies may cover chemotherapy, radiation, surgery, hospital stays, and even second opinions.

How Group Cancer Insurance Works?

Group cancer insurance is provided to employees as a component of a company’s group health benefits plan. This allows employers to offer coverage to all eligible employees under a single policy.

Premiums tend to be lower in a group plan than in individual plans since the risk is distributed among a larger group of people. Employers have the option to cover all, some, or none of the premiums.

Most group cancer insurance policies are backed by major insurers like Aflac, Allstate, and Guardian. These policies usually permit employees to enroll in coverage during open enrollment periods or when qualifying life events occur.

Why Offer Cancer Insurance to Employees?

1. Financial Protection

Even with health insurance, cancer patients frequently encounter out-of-pocket costs that can reach tens of thousands of dollars. Cancer insurance assists in covering these gaps by providing lump-sum payments or reimbursement benefits that alleviate financial pressure.

2. Improved Employee Retention

Providing extensive coverage, such as cancer insurance, demonstrates to employees that their health is a major concern. This can enhance morale and increase employee retention rates.

3. Tax Advantages

Employers may be able to deduct the premiums they pay for group cancer insurance as a business expense. In most cases, the benefits employees receive are not considered taxable income, though this can vary based on the policy and how the benefits are used.

4. Ease of Administration

Group plans are simpler to manage compared to several individual policies. Benefits providers usually take care of onboarding, claims, and customer service, which lessens the administrative load on HR departments.

What Does Group Cancer Insurance Cover?

Cancer insurance policies can vary, but most include the following coverage elements:

• Initial Diagnosis Benefit: Lump-sum payment upon confirmed diagnosis.
• Treatment Benefits: Coverage for chemotherapy, radiation, and surgery.
• Hospital Confinement: Daily cash benefits for inpatient stays.
• Transportation and Lodging: Expenses related to treatment outside the local area.
• Follow-up Care: Ongoing checkups and scans to monitor recurrence.

Who Is Eligible for Group Cancer Insurance?

Eligibility is based on the employer’s chosen group policy. Typically, full-time employees qualify, and coverage may also include spouses and dependents.

Certain insurers might provide guaranteed issue policies, meaning no medical exams or health inquiries are necessary, particularly for larger groups.

How Much Does It Cost?

Group cancer insurance premiums differ based on factors like age, the number of insured people, and coverage options.

Typically, employers should anticipate costs ranging from $10 to $30 for each employee monthly. Nevertheless, bulk pricing and policy adjustments can greatly influence these figures.

How to Add Cancer Insurance to Your Employee Benefits Package

Step 1: Assess Your Workforce

Assess your employees’ healthcare requirements, demographics, and any gaps in their current coverage.
Consider doing an anonymous survey to gauge interest in cancer insurance.

Step 2: Choose a Reputable Provider

Choose a provider recognized for quick claims processing, solid financial support, and good customer service. Evaluate the features of plans and options for customization.

Step 3: Design the Plan

Choose if the plan will be paid by the employer, the employee (voluntary), or both. Set the coverage levels, eligibility criteria, and enrollment times.

Step 4: Educate Employees

Offer clear, simple materials to clarify how the plan operates, what it includes, and how it supports their main health insurance. Use webinars, printed brochures, and Q&A sessions during the open enrollment period.

Step 5: Enroll and Monitor

Collaborate with the insurance provider to manage enrollment and gather employee choices. Once implemented, track usage and collect feedback for future enhancements.

Legal and Regulatory Considerations

Employers are required to follow federal and state laws when providing group cancer insurance. The Employee Retirement Income Security Act (ERISA) could be relevant, particularly if the employer pays part of the premiums.

It is important to communicate all features of the plan and adhere to privacy regulations under HIPAA.

Cancer Insurance and the Affordable Care Act (ACA)

The ACA requires essential health benefits, but it does not mandate that employers provide cancer insurance specifically. However, because cancer insurance is viewed as a supplemental policy, it is not subject to ACA minimum coverage rules. This means that companies can offer cancer insurance without violating their current ACA responsibilities.

Is Cancer Insurance Worth It?

Indeed, cancer insurance provides important peace of mind for many businesses and their employees. Although it may not be necessary for everyone, the financial protection it offers can significantly impact those who require it.

By including it as a voluntary benefit, you allow employees to select what suits their needs best, while also improving your overall benefits package.

Why Choose Medcore Brokerage?

Medcore Brokerage, the top Employee Benefits Consultant in Texas, focuses on providing customized employee benefits solutions that cater to the specific needs of your business.

Reach out to us today to discover how we can assist you in offering cancer insurance and other important benefits effortlessly.

Expert Editorial Comment

So, can you get cancer insurance for employees in a group plan? Absolutely. It’s a proactive step toward safeguarding your team’s health and financial stability.

Adding group cancer insurance to your benefits package is a cost-effective way to show employees you care, all while boosting your company’s competitiveness in the talent market.

Frequently Asked Questions

Can I get cancer insurance for employees in a group plan?

Yes, employers can provide group cancer insurance to support employees financially, often with lower premiums and easier enrollment

What does group cancer insurance typically cover?

Group cancer insurance typically covers initial diagnosis, treatment costs (chemotherapy, radiation), hospital stays, travel expenses, and follow-up care.

Is cancer insurance mandatory under the ACA?

No, cancer insurance is considered supplemental and is not required under the Affordable Care Act (ACA).

How much does group cancer insurance cost?

Premiums typically range from $10 to $30 per employee per month, depending on the plan and coverage levels.

Can employees opt into cancer insurance voluntarily?

Yes, many employers offer group cancer insurance as a voluntary benefit, allowing employees to choose whether to enroll.