Australians diagnosed with cancer would be given one-off payments of $5000 by health insurers under a proposal aimed at warding against bill shock.
The financial stresses shouldered by cancer patients can prove as toxic as other side-effects of their treatment including nausea, fatigue and depression, says Anthony Lowe from the Prostate Cancer Foundation.
"People either decline to have treatment or stop getting treatment or make treatment choices because of the financial stress," Professor Lowe said ahead of the release of a discussion paper on the issue.
He wants private health insurers to be allowed to offer lump-sum payments to people diagnosed with cancer, the cost of which would be covered by monthly premium increases of roughly $2.30 per person.
"The intent is to make private health insurance more attractive to meet the need of people who hold that cover."
He and report co-author Jamie Reid, a health insurance actuary, said many cancer patients were under the false impression Australia's universal health care system, combined with private insurance, covered all costs.
But the pair said out-of-pocket expenses could be higher for patients with private health insurance than those without cover, often totalling thousands of dollars.
They suggest easing regulations to allow insurers to officer policyholders diagnosed with cancer a simple trauma insurance benefit.
