Health Insurance for Cancer

Cancer care in the private medical insurance business is in jeopardy with discussion about removing it from policies. Gil Baldwin, managing director of Norwich Union said 'I don't think any provider will strip out cancer completely because the political landscape doesn't allow for that. ' But why is removing cancer from policies even an issue and what does that mean for the future of health insurance?

The problem is the rising costs of treating cancer. Better drugs are being released all the time but they are very expensive. Herceptin, for example costs around £60,000 a year and Avastin £70,000. The rise in the cost of cancer drugs has led some insurers sticking quite strictly to the NICE (National Institute for Health and Clinical Excellence) guidelines about cut-offs for some drugs, for example Herceptin.

“The cost of drug treatments is inflationary and at the same time our customers expect more for their money – more from us and their health professionals,” said Baldwin.

Insurers are concerned that soon the costs of paying out will far outweigh what they can charge in health premiums. Norwich Union Healthcare, for example, spent 18% more on cancer care in 2007 than it did in 2006.

Professor Sikora medical director of CancerPartners UK (an organisation set up to work in partnership with the NHS, the independent sector, and the voluntary sector, to bring high quality cancer care closer to patients) says that only 10% of cancer care patients are treated within the private health insurance sector however it is the main reason that people site for taking out medical insurance and is responsible for 1 in 8 medical claims. The NHS is struggling just as much as the private sector as peoples expectations rise.

Another difficulty for the consumer is the fact that health insurance companies are designed to only treat short-term (acute) conditions. If a cancer is considered curable it could be said to be 'acute' but if you become terminally ill then you may no longer be covered under the terms of your policy. Insurance companies can reclassify your illness from acute to terminal during your treatment.

Bupa's Select Heart and Cancer Policy is specifically designed to cover you eligible cancers and acute heart conditions and includes organ transplants related to these two conditions. Please note that this does not cover 'long term illnesses which cannot be cured (usually referred to as ‘chronic conditions’)'

Virgin Cancer Cover is a very different policy which does cover terminal illness (as long as the claim is not made withing 18months of taking out the policy). The only cancers that it does not cover are: non-melanoma skin cancers and early forms of cervical cancer which make it the most comprehensive cover on the market although they will not cover any cancer claim made in the first 90 days of your cover. This policy pays out a lump sum up to £500,000 depending on the level of cover you take out.

Pru Health are a traditional health insurance company have amongst the best health insurance cover for cancer. They cover 'treatment for all stages of cancer. There are no financial limits on inpatient and outpatient cancer treatment on any plan.'

With many new developments in the treatment of cancer and rising drug prices it is expected that more companies will bring out specialised cancer care products as the current climate would make it very difficult for them to drop their provision for cancer cover.