When it comes to protecting your employees, offering health insurance is one of the most important benefits you can provide. But many employers are now exploring supplemental benefits, such as cancer insurance, to give employees more financial protection in the face of serious illnesses.
While traditional health insurance helps cover medical expenses for a wide range of conditions, cancer insurance is designed to specifically support patients diagnosed with cancer. Understanding the differences can help you decide whether adding cancer insurance is the right choice for your benefits package.
What Is Traditional Health Insurance?
Traditional health insurance covers a broad range of medical services, including preventive care, doctor visits, hospital stays, surgeries, and prescription medications. Depending on the plan type—HMO, PPO, or EPO—employees will have varying levels of flexibility in choosing providers and specialists.
However, even with comprehensive health insurance, cancer treatment can lead to significant out-of-pocket costs. According to the American Cancer Society, patients can face expenses for deductibles, copays, out-of-network care, and non-medical costs like transportation, lodging, or lost income.
What Is Cancer Insurance?
Cancer insurance is a supplemental policy designed to provide financial support specifically after a cancer diagnosis. It typically pays out a lump sum or covers specific expenses related to cancer care, such as chemotherapy, radiation, surgeries, or hospital stays. Some policies also help with non-medical expenses like childcare, transportation, and household bills.
Key Features of Cancer Insurance:
- Provides additional funds beyond traditional health coverage
- May pay benefits directly to the policyholder
- Can help with both medical and non-medical expenses
- Premiums are typically affordable, making it an accessible add-on benefit
Key Differences Between Cancer and Traditional Health Insurance
1. Scope of Coverage
Traditional Health Insurance covers a wide range of medical services, from preventive care and doctor visits to hospital stays and prescriptions.
Cancer Insurance is focused specifically on expenses related to cancer diagnosis and treatment.
2. Payment Structure
Health Insurance typically pays medical providers directly and only for covered services.
Cancer Insurance often pays a lump sum or cash benefits directly to the policyholder, who can use the funds however they choose.
3. Eligible Expenses
Health Insurance pays only for eligible medical services according to the terms of the plan.
Cancer Insurance can be used for both medical expenses (like chemotherapy or surgery) and non-medical costs (like transportation, lodging, or lost income).
4. Cost
Health Insurance premiums can be high, especially for plans with broader coverage or lower deductibles.
Cancer Insurance premiums are generally much lower because it is a supplemental plan, not a comprehensive one.
5. Flexibility
Health Insurance plans often have network restrictions and deductibles.
Cancer Insurance benefits offer more flexibility, as the funds can be used where they’re needed most, whether that’s to cover treatments, rent, or time off work.
Because cancer insurance is a supplemental plan, it’s not meant to replace health insurance; it works alongside it to provide more complete financial protection.
Why Consider Offering Cancer Insurance?
Cancer is one of the most expensive illnesses to treat. The National Cancer Institute estimates that annual U.S. cancer care costs exceed $200 billion, and those numbers are expected to rise as treatments advance. Even employees with robust health insurance may struggle with lost wages, travel expenses, or high out-of-pocket costs.
Offering cancer insurance as an optional benefit can:
- Provide employees with peace of mind
- Reduce financial stress in the event of a cancer diagnosis
- Make your benefits package more competitive
For small businesses, it’s an affordable way to enhance employee benefits without significantly increasing costs.
Should You Offer Both?
If your budget allows, combining traditional health insurance with supplemental cancer insurance can give your employees a stronger safety net. Health insurance ensures access to necessary treatments, while cancer insurance provides extra financial support during a difficult time.
As a business owner, offering the right benefits helps you attract and retain top talent while supporting your team’s well-being. J.C. Lewis Insurance Services can guide you through the options for both traditional health insurance and supplemental cancer insurance, helping you create a benefits package that fits your employees’ needs and your budget. Call 707-978-2359 or visit jclis.com to explore the best options for your business today.
