Piecing Together the Costs of a Terminal Cancer Diagnosis

Dealing with a major medical diagnosis is a huge blow, both emotionally and financially. When that diagnosis is terminal cancer, the unfortunate reality is that you may still face high costs of treatment and palliative care. Determining how you will cover these costs shouldn’t be one more thing to worry about, and it doesn’t have to be when you understand your benefits and explore your options.

The High Costs of Cancer

Facing a terminal diagnosis puts you face to face with many questions about what comes next. The best thing you can do is be in open communication with your cancer care team, your insurance company, and any other service providers. The American Cancer Society recommends discussing costs with your cancer team so you know what to expect and aren’t blindsided with unexpected bills. These are just a few questions to ask:

  • What will your health insurance company pay for? What will you have to pay out of pocket?
  • Does your health insurance company need to pre-approve or pre-certify any treatment?
  • Will treatment be provided at a hospital, a hospice center, or your home?

Even when you forgo treatment that is aimed at healing, ongoing care can be expensive. According to Forbes, studies have shown that cancer patients can spend between 10 and 30 percent of household income on cancer treatment, even when they have insurance coverage. This is a tremendous financial burden and can potentially decrease your standard of living at a time when you need self-care the most. One common misunderstanding about hospice, and dealing with terminal illness, is the idea that hospice means no longer getting medical care. Hospice simply means shifting from healing to palliative care.

These tips will help make sure you get the care that’s right for you, and at the same time, avoid being a victim to cost:

  • Understand Medicare coverage: Depending on your diagnosis and prognosis, you may be eligible for Medicare coverage. If you are eligible, this coverage includes a consultation with a hospice provider and most costs of care that are related to your illness. There are, however, some things that Medicare won’t cover, including medications that are not palliative or care from a provider that is outside of your hospice team.
  • Communicate your wishes: With a terminal diagnosis, deciding to end treatment and opt instead for palliative care is never an easy decision. At the same time, many people would prefer to live out the end of their lives at home rather than undergo care or procedures in a hospital. If this is how you feel, communication with family members and your care providers is key to ensuring your wishes are carried out. Transitioning to home care is not only more peaceful, but it also allows you to avoid the costs associated with unnecessary care that is aggressive and often involves unpleasant side effects.
  • Get help paying for costs: You do have options for getting help to pay for costs, and taking advantage of those is smart. According to CNBC, you don’t want to cash in retirement funds or otherwise blow through your savings to pay for care. Even with a terminal diagnosis, you don’t know exactly how long you have to live, and you don’t want to deplete your financial resources. 

If you or a loved one needs money to cover medical expenses or long-term care associated with a terminal cancer diagnosis, your life insurance policy can be sold for a cash payout. Called a viatical settlement, doing this allows you to supplement your income so you have a cushion for living, and enjoying, your last days. There are several requirements to be eligible, including meeting the minimum policy size face value. 

The costs of medical care may feel like an added burden at a time when you are already struggling to make sense of what’s going on. It’s never easy, but exploring all of your options should ease that burden and help give you some sense of control. Cancer is confusing and scary, but these tips will at least help you piece together the costs.

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