Why Should You Offer Cancer Insurance to Your Employees?

Cancer is still one of the most costly and emotionally taxing diseases globally. The National Cancer Institute states that about 39.5% of both men and women in the United States will receive a cancer diagnosis at some stage in their lives.

As medical expenses increase and insurance coverage remains inconsistent, many employers pose an important question: “Why should you offer cancer insurance to your employees?”

This article explains why cancer insurance should be part of your employee benefits package, how it helps employees, and why it makes financial and ethical sense for your business.

What Is Cancer Insurance?

Cancer insurance is a specific kind of extra health coverage that offers financial help to workers who are diagnosed with cancer. It aims to pay for various costs that are not typically covered by standard health plans, including:

• Hospital stays
• Chemotherapy and radiation
• Out-of-network treatments
• Travel and lodging for medical care
• Home healthcare and childcare services
• Lost income during extended leave

In contrast to regular health insurance, cancer insurance typically offers payouts as a lump sum or scheduled benefit, enabling employees to allocate the funds to their most pressing needs.

Why Should You Offer Cancer Insurance to Your Employees?

As an employer, providing cancer insurance is more than just financial security; it shows you care about your employees’ health. Here’s why this benefit is a wise decision:

1. Cancer Is More Common Than You Think

Almost 4 out of 10 people will likely receive a cancer diagnosis in their lifetime, which means someone on your team or their family may be impacted. This highlights that cancer insurance is not only useful but also very important. Providing it shows both foresight and compassion.

2. Cancer Treatment Is Incredibly Expensive

The American Cancer Society states that cancer patients may spend more than $150,000 on their treatment. Even with a full health plan, copayments, deductibles, and out-of-pocket limits can be quite burdensome. Cancer insurance assists in covering that financial shortfall.

3. It Improves Employee Satisfaction and Retention

Today’s workers seek more than just a paycheck; they desire complete benefits that safeguard their health and financial well-being.

Providing cancer insurance enhances your benefits package, aiding in talent attraction and improving retention, particularly in competitive fields.

4. It Reduces Absenteeism and Stress

Employees affected by cancer, whether themselves or through someone they care about, face significant stress, which can result in absenteeism or lack of engagement.

Cancer insurance offers a safety net, enabling them to concentrate on recovery rather than stressing over expenses.

5. It’s Cost-Effective for Employers

Cancer insurance is usually inexpensive, especially when provided as a group benefit. You can offer it as:

• A fully employer-paid benefit
• An employee-paid voluntary benefit
• A shared-cost model between the employer and the employee

This flexibility allows businesses of any size to include cancer insurance in their benefits.

How Cancer Insurance Works?

Typically, employees sign up for group plans during the open enrollment period. If they are diagnosed with cancer afterward, they can file claims for reimbursement or get lump-sum payments according to the policy details. These funds can be utilized for any reason, whether medical or personal.

The straightforward claims process and the free use of funds make cancer insurance very useful and important in tough times.

Tax Benefits and Compliance

If you have questions about taxes, cancer insurance premiums can usually be deducted as a business expense.

Benefits received by employees are typically tax-free if the employee pays the premium using after-tax money. However, it’s important to talk to your tax advisor to set up the benefit correctly and make sure you follow ERISA and HIPAA rules.

Real-Life Use Cases

Imagine an employee whose child has been diagnosed with leukemia. Their primary health insurance covers hospital care, but the family must deal with $10,000 in travel and accommodation expenses to receive specialized treatment.

Cancer insurance assists in covering these costs, allowing the employee to concentrate on their family and job.

Alternatively, think about a single parent on your team who has been diagnosed with breast cancer. A one-time benefit enables them to afford in-home childcare during their recovery from surgery, without depleting their savings.

What to Look for in a Cancer Insurance Plan?

As you evaluate providers and plans, consider these important features:

• Comprehensive coverage: Should include both inpatient and outpatient treatment.
• No or limited waiting periods: To allow immediate claims after diagnosis.
• Portability: Can the employee retain the policy if they leave the company?
• Flexible payouts: Lump-sum or scheduled benefits should be available.
• Ease of claims process: The plan should offer hassle-free, quick reimbursements.

Educating Employees About the Benefit

After you include cancer insurance in your benefits package, it’s important to inform your employees. Think about organizing webinars, providing simple brochures, and talking about benefits during onboarding and yearly open enrollment.

Partnering with the Right Consultant

It’s important to collaborate with a benefits consultant who knows your business and employee requirements.

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

We assist you throughout the entire process, from choosing policies to educating employees and supporting claims.

Expert Editorial Comment

In a time when healthcare issues are very personal and can be costly, employers can significantly influence their employees’ lives by providing thoughtful benefits.

Asking why you should provide cancer insurance to your employees is not just a rhetorical question; it shows your dedication to their health, safety, and peace of mind.

By adding cancer insurance to your benefits package, you are not only safeguarding your employees but also enhancing your company culture, boosting retention, and showing responsible leadership. The expense is small, but the benefits to your employees and your business are priceless.

Frequently Asked Questions