Study Finds Most Americans Unprepared To Deal With Non-Medical Costs Of Cancer

A new study has revealed that although a majority of American adults have encountered cancer in their immediate family, only 15 percent own a supplemental health insurance policy to help pay the non-medical costs of the disease.

The November 1997 national benchmark consumer survey of 1,200 Americans, aged between 40 and 60 years of age, examined the public's knowledge of the costs and treatments of cancer. It was conducted for Conseco, Inc. by Riggs Research Services of Indianapolis, IN.

"The primary purpose of the survey was to establish a benchmark concerning the opinions and perceptions of a national sample of insured Americans on the subject of cancer," said researcher James Riggs, Ph.D. "We were interested in their opinions about their present major medical insurance, the level of their information concerning cancer treatment and insurance coverage, and to determine if certain behaviors associated with their lifestyle contributes to healthy living."

The survey found that 83 percent of respondents knew someone that had been diagnosed with cancer and 59 percent identified an immediate family member. Sixty percent said there was a history of cancer in the family. The greatest numbers of cancer being reported were in the Northeast (66 percent) and the West (62 percent). The rate in the Midwest was 60 percent and in the South was 56 percent.

Thirty six percent of the respondents said they had worried about having enough money or enough insurance to pay for a major illness or operation, or to pay all the costs related to a long-term illness. The highest percentages of concern were in the Midwest (40 percent) and with adults whose income was below $40,000 (41 percent). Sixty five percent said that they would suffer a reduction in their annual income if a family member was diagnosed with cancer.

In a multiple-response question, respondents were asked who would pay the non-medical costs of treating cancer. Fifty nine percent said they would use family savings; 53 percent would use their present medical insurance; 41 percent were willing to sell family assets to pay non-medical bills; and 30 percent said they would use supplemental insurance.

"According to the American Cancer Society, more than 60 percent of the total cost of cancer is non-medical in nature, and, consequently, not paid for by major medical insurance," said Christopher Weaver, executive vice president of Conseco Marketing, L.L.C. "Non-medical costs are those items incurred as a direct result of treating the disease, like child care expenses, special food, lost income and travel to treatment facilities."

Weaver said that the survey results point to significant consumer anxiety about financial hardships when a family member undergoes cancer treatment. "This important research will help us adequately respond to consumer concerns by designing and marketing supplemental health products that fill real needs expressed by 'baby boomers' to protect the wealth they have created over their working careers. Supplemental health insurance is one way families can protect their lifestyle in the event of a cancer illness," Weaver added.