Why is it important to offer cancer insurance policies?

Written by Jessica Adkins

August 29, 2017

Q. Why is it important to offer cancer insurance policies?

A. With the odds being where they are today, one in two men and one in three women being diagnosed with some form of cancer during their lifetimes, it’s a pretty easy conclusion that there is simply a need for cancer insurance in the marketplace. Let’s take a closer look at how many

Let’s take a closer look at how many MAPD plans are structured. Obviously, we all know you have PCP and Specialist copays, inpatient hospital stay copays, surgery copays, and a maximum out of pocket copay. Depending on how a member’s particular MAPD product is structured, they are usually going to be subject to either a flat amount copay for any cancer removal surgery or potentially a percentage copay, which can be pretty pricey, up to someone’s max out of pocket amount. On top of the surgery cost share, members will contend with a cost share for Chemotherapy, radiation, and any days they spend as an inpatient in the hospital.

In my opinion, a cancer diagnosis is one of the fastest ways to get to the full max out of pocket amount. Let’s face it, there is never a good time to be diagnosed with cancer, but there are worse times than others when considering the structure of an MA plan. As most of you know, plans and benefits reset every January 1st. This means if a member were to be diagnosed with cancer in September, October, or November, there is a high likelihood that the member will reach their maximum out of pocket that calendar year. With many cancer treatment plans lasting several months, their treatment is likely to extend into the next year as well, effectively putting the next years maximum out of pocket at risk as well, then you have a client that is contending with potentially two years of maximum out of pocket expenditures. Those members will also have to contend with the extra part D prescription expenditures that they were not initially budgeted for. Today, many people don’t have up to an extra $13,000 sitting in an account free and clear.

This, in my opinion, is where a good cash cancer plan comes in to play, and it’s pretty easy to see the importance when you really look at the issue. I recommend discussing at least one, but really two years of the member’s plan maximum out of pocket in a cancer plan, and should they be unfortunate enough to be diagnosed, and they get a check in hand for $14,000, I can almost promise you that when they get a check in the mail, you will be their next call to say “Thank you for talking with me about this cancer plan.” Now that the why part is out of the way, there is one other part of selling cancer insurance we haven’t covered. Agents get paid pretty well to sell cancer plans. With many carriers over the 40% commission mark on cancer plans, this line of business can become a very significant part of your revenue stream in the future.

-Answered by Matt Goheen, Regional Vice President

Matt Goheen is Regional Vice President of Region 6, covering the Utah, Arizona, Louisiana, Mississippi, North Carolina, South Carolina, and New England markets. Matt is also a licensed Life and health agent and has been working at Agent Pipeline for 7 years, specializing in Medicare Health Plans. If you are an agent and would like to speak with Matt to learn more about the opportunities available in your market, you can contact Matt at 800-962-4693 ext. 6462.


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