Cancer strikes 18 million people worldwide and affects people of all ages and socioeconomic backgrounds. Approximately 5,000 Americans receive a new cancer diagnosis each day in the United States. How can you pay for the high cancer cost of treatment? You may be eligible for tax breaks if diagnosed with cancer. Find out these benefits and how they could help you pay fewer taxes as you manage cancer treatment.
In this article, we discuss various U.S.-based resources and regulations. Other countries may have different rules around health insurance coverage and hospital operations. Ask your healthcare provider about available resources if you live outside the United States.
American cancer patients spend thousands of dollars in out-of-pocket expenses each year. While health insurance covers the bulk of treatments like chemotherapy, hospitalizations, medications, and doctor's visits, other costs like lodging during cancer treatment, gasoline, transportation, or even gene testing for cancer cost patients up to $20,000 a year.
Many cancer patients suffer from reduced wages or have to leave their careers altogether during treatment. Cancer recovery is a long road, and some patients need a nursing facility or long-term care. As you can see, it's easy to see why the cancer cost of treatment and care can become incredibly high.
Cancer looks different for every patient. Some patients only require minimal surgery or a medication regime. Other patients may need long-term care, chemotherapy, or repeated hospitalizations. Because treatment differs so much between patients, finding the right insurance plan to cover what you need will considerably reduce financial stress. Several factors will determine your cancer costs:
Each insurance plan differs, whether you have private insurance, HSA, or Medicare. Keep excellent records and receipts for anything related to your cancer treatment. This includes non-medical expenses like travel, gasoline, and lodging during treatment. Keep detailed records so you can itemize your deductions carefully on your tax forms. Finding ways to save money during tax season will help you financially with any expenses not covered by your health insurance.
If you're having trouble paying for medical bills not covered by your insurance, ask your physician if they know of any financial counselors, social workers, or patient navigation staff members at your hospital who can help you navigate these issues.
Cancer patients may qualify for a tax credit if they meet specific requirements. Here are the rules for claiming the Affordable Care Act’s tax credit (the Premium Tax Credit):
A health savings account (HSA) allows you to set aside money for future medical costs. It's similar to a flexible spending account, except that you use the funds in the account for any qualified medical expense like radiation or a doctor's visit. If enrolled in Medicare Part B, you can also contribute to an HSA.
There are several different ways to deduct health expenses. One of them is through an HSA. This type of deduction is available to people who both Medicare and Medicaid cover. Another option is to take advantage of the IRS' "1040A" form. Speak with your tax preparer about how to save money through HSA tax breaks for medical treatment.
A cancer diagnosis turns the world upside-down. Alleviate some of your financial stress by meeting with your tax preparer and financial advisor. Ask them about what medical expenses you can deduct during your treatment. Most medically necessary therapies like surgery, hospitalizations, and prescription medications will receive coverage by private insurance. Non-medical costs may not be covered, and these should be itemized and can be deducted.
Pay fewer taxes by deducting medical costs like chemotherapy, transportation, family caregiving, health insurance policy premiums, gas purchases, and more. Always itemize your deductions and keep excellent records. Consider purchasing supplemental cancer insurance from your provider to minimize expenses. Work with your team on how to make your finances work for you during this challenging time.
