Cancer Insurance and Other Ways to Pay for Cancer Care

Catastrophic health insurance plans help pay for worst-case scenarios. They have low monthly payments, but high deductibles and high out-of-pocket costs.

Here are some things to know about catastrophic insurance plans.

• They cover the same essential health benefits as other Marketplace plans.
• They might not be available in all areas.
• They cover minimum health benefits including preventive services, emergency services, and prescription medications, but you pay for all services and bills until you hit a very high deductible.

Catastrophic plans pay for the following, regardless of how much of your deductible you’ve paid:

• Three primary care visits a year
• Preventive services required under the Affordable Care Act (ACA) including some screening tests and vaccinations

To be eligible for a catastrophic plan, you must either be under 30 years of age, or you must qualify for a hardship exemption.

Most people use catastrophic plans as a temporary option when they need coverage but can't afford other plans. If you are eligible for catastrophic insurance, you can see them in the Marketplace. You can also ask for free quotes before you decide on a plan.

Disability income insurance is a secondary plan that helps replace part of your income if you cannot work because of illness or injury. This is different from federal Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

Some employers offer short-term or long-term disability insurance as a workplace benefit. People can also buy individual policies on their own. These plans usually pay a portion of your regular income for a set period if you meet the policy’s definition of disability. What it pays, waiting periods, benefit amounts, and how long benefits last can vary by plan.

Hospital indemnity insurance is supplemental insurance that you can get in addition to your regular insurance. You pay a monthly premium. If you’re in the hospital, your insurance pays you a certain amount of money for a certain time period. You can use this money on hospital bills or other things such as: 

• Insurance deductibles
• Medicines
• Food
• Rent or mortgage
• Utility bills
• Transportation
• Rehabilitation

Hospital indemnity plans are usually available through your work. Some plans have waiting periods before you can use them.

Long-term care insurance is secondary insurance that helps pay for personal care if you are no longer able to care for yourself because of illness, disability, or aging. This might include help with daily activities, such as:

• Bathing
• Dressing
• Eating
• Getting in and out of bed or chair
• Using the bathroom

Some policies might also pay for services such as transportation, adult day care, home care, assisted living, or nursing home care.

Most health insurance plans, including Medicare, only cover limited long-term care services. Usually they only pay for a short time. Medicaid might cover long-term care for people who qualify based on income and other eligibility rules.

Long-term care insurance can be purchased as:

• A separate policy
• Part of a work benefit package
• An add-on to a life insurance policy

These policies can be costly and often have waiting periods before benefits begin. What they pay, benefit limits, and who is eligible vary by plan.

If you already have serious health problems or need long-term care services, you might not qualify for a policy. Or you might have to pay higher costs. Some policies also have waiting periods before they will cover care related to pre-existing conditions.

A Health Savings Account (HSA) is a personal savings account that lets people set aside money tax-free to pay for eligible healthcare expenses. HSAs are usually available to people who have a high-deductible health plan.

The money in the account can be used for costs such as deductibles, copays, prescriptions, and some other qualified medical expenses. There are limits to how much you can contribute to an HSA each year. Funds generally roll over from year to year if they are not used.

Your employer might offer a Flexible Savings Account (FSA), also called a Flexible Spending Arrangement, if you aren’t eligible for a health savings account (HSA). FSAs are owned by your employer. Money is taken from your paycheck before taxes, and some employers will add to your FSA too.

There are limits to how much you can put into an FSA each year. You can use FSA money for qualified medical or dependent care expenses. In many cases, if you don’t use FSA money by the end of the year, you lose it. But some plans might allow limited rollover at the end of the year.

Some employers offer a Health Reimbursement Arrangement (HRA) to help pay for certain medical expenses. HRAs are different from HSAs and FSAs because the employer pays for and manages the account.

Reimbursements are usually tax-free and have a maximum amount. The employer chooses what to cover and whether or not you can roll funds over to the next year.