Manage your money Your cancer is likely to have a major impact on your financial situation. Take control of money issues now so they don’t get out of hand later on.
Brace for impact The public health system in Australia covers most of the costs associated with cancer treatment. However cancer may still make big demands on your household finances. You may have to spend money on travel, accommodation and drugs, as well as complementary treatments to manage side effects. And, if you’ve had to leave work or reduce your hours, you’ll be earning less than you used to.
Most Australian households only have enough money saved to get through two or three weeks without an income. It’s not unusual for people with a cancer diagnosis to feel financial pressure almost immediately.
Be ready for some up-front costs You’re likely to feel the financial impact straight after diagnosis. Many diagnostic tests have to be paid for up-front by the patient. These costs can be reimbursed in part or in full at a later date, but if your household budget is already tight, you could find it difficult to raise the funds you need at this time.
What's covered by Medicare? All services that you receive as an in-patient in a public hospital are covered by Medicare. The treatment you receive will be given to you by the doctor or specialist nominated by the hospital. You will not be charged for care, treatment or after-care by the nominated doctor.
What about private health insurance? As a private patient in a public hospital you can select which doctor treats you. Medicare will pay 75 per cent of the Medicare-scheduled fee for the services you receive. You will have to cover the difference between what Medicare pays and whatever your doctor charges. You will also have to cover certain things including hospital accommodation, theatre fees and medicines.
Your private health insurance may reimburse all or part of those costs. Look at the detail of your policy or contact your insurer to find out exactly what is covered. Pay particular attention to radiotherapy as often this isn’t fully covered by private health insurance.
Every Australian resident is entitled to be treated for cancer through the public health system. If you are concerned about the costs you may be liable for as a privately insured patient, and if your treatment is not time-sensitive, you could elect to be treated as a public patient. Speak to your care team for advice.
Ask questions about the drugs you're paying for If you’re being treated as a private patient, it’s likely you’ll be asked to pay up-front for the drugs used in your treatment. Some of the cost will be reimbursed by Medicare. The balance will be paid by you or your private health insurer or both. Drugs that are not yet covered by the government’s Pharmaceutical Benefits Scheme can be extremely expensive. If you’re worried about being able to cover the cost of the drugs recommended for your treatment, tell your care team. Together you may decide that a less expensive, generic drug is an acceptable alternative. Or your care team may suggest you try to access some financial support.
Managing electricity, water and gas bills Utility providers including gas, water and electricity companies usually make provisions for people in financial hardship. If you’re having trouble paying bills, contact your utility provider and see if you can arrange to pay them off over a series of months. As long as you’re up to date with those monthly payments, you will not be disconnected from the service.
Managing your mortgage Banks and other lenders are also prepared to make special arrangements for people in hardship. If you think you’ll be struggling with your mortgage, talk to your lender about the possibility of reducing or deferring loan repayments for a period. Bear in mind, though, that both of those options can mean that you ultimately pay more over the term of the loan. It could be valuable to talk through your options with a professional financial adviser.
Get level-headed advice Your financial difficulties may be very short-lived, or they could go on for some years. It’s important that you get the right financial advice so the things you do now don’t have an adverse impact on your finances in the future. To find a professional who can help you, go to the Financial Planners of Australia website (www.goodadvice.com.au) or call them on 1300 626 393. If you can’t afford to pay for financial advice, call the Cancer Council Helpline on 13 11 20 and see if they can help you organise some free financial counselling.
Turn to your social worker A number of organisations, including the Cancer Council, have financial assistance programs in place to support people with cancer who are experiencing severe financial hardship. To find out about what sort of assistance might be available to you, speak to your social worker. If you haven’t already had contact with a social worker, ask your care team to put you in touch with one.
If you're unable to work Centrelink has a range of payments and benefits available for people unable to work because of their cancer. You can contact Centrelink on 13 27 17 or go to www.centrelink.gov.au for more details.
Sickness Allowance If you are temporarily unable to work and you have a job to return to when you recover, you may be able to claim the Sickness Allowance.
Disability Support Pension If your cancer means that you are unable to work 15 hours a week (or more) for at least the next two years, then you may be able to claim a Disability Support Pension.
Commonwealth Concession Card If you are receiving either a Sickness Allowance or a Disability Support Pension, you may also be eligible for a Commonwealth Concession Card. This card entitles you to benefits including cheaper medicines and bulk-billed doctor’s appointments. It can also give you access to concessions from your state government or local council such as access to subsidised housing and discounts on council rates.
If you're a student If you are a student receiving either an ABSTUDY or Austudy payment and you’re unable to attend your course because of your cancer or cancer treatment, you may be eligible to continue receiving your payments for a period of time. You will need to remain enrolled in your course and lodge a medical certificate with Centrelink. Get in touch with Centrelink on 13 27 17 or go to www.centrelink.gov.au to find out more.
If you're receiving other benefits Under normal circumstances, Centrelink benefits including the Newstart Allowance, Youth Allowance, Special Benefit or Parenting Payment will only be paid if you meet certain requirements such as attending training courses or job interviews. If you are having treatment for cancer, or if you are recovering from treatment, you can apply for a Temporary Incapacity Exemption for up to 12 months, with a possible extension for another six months. Contact Centrelink on 13 27 17 or go to www.centrelink.gov.au to get more information.
Emergency access to superannuation Generally you can’t access your superannuation until you retire or turn 65. However, your super can be paid out earlier if you’re suffering from a terminal medical condition.
To access your superannuation early, you need to apply directly to your superannuation fund. The fund will decide whether or not to release your superannuation to you.
In your application you’ll need to provide two medical certificates. These certificates need to state that you are suffering from an illness likely to result in death within 12 months. One of the medical practitioners must specialise in an area related to your illness.
You will not be taxed on the superannuation lump sum paid to you as a consequence of your terminal medical condition.
If you are going to access your superannuation benefits early you should think about the financial consequences. If you’re receiving payments from Centrelink, the superannuation lump sum may affect those payments. Pulling out a lump sum may also impact on any life insurance policy you have with the superannuation fund. Consider getting professional financial advice.
If you recover from your terminal medical condition you may want to rebuild your superannuation. However, there is a yearly cap on how much an individual can put into a superannuation fund, depending on their age. Significant tax penalties can apply if you exceed the cap. Find out more by going to the Australian Taxation Office website at www.ato.gov.au and searching for “too much super can mean extra tax”.
Expert's insight: Gill Batt People with private health insurance should look closely at their policies before entering the health system as a private patient says Gill Batt, director of cancer information and support services at Cancer Council NSW.
“It’s very important to check whether you’re going in as a public patient or a private patient. When you do your admission you’ll be asked if you’ve got a private health fund and often the staff take those details and then automatically assume that you want to use that health fund. But really, you should find out what you’re covered for first.
“If you go in as a public patient, your in-patient treatment will be covered by Medicare, so you won’t have to pay. If you choose to go as a private patient because you have a health fund, it’s important that you check to see what your health fund will cover because you can end up with a very large gap for the anaesthetist, the surgeon and so on. You need to be really careful about what it is that you’re undertaking.
“We do know of situations where people have chosen to go private because they’re scared that otherwise they’ll have to wait too long for treatment. It’s advisable to check whether waiting for two or three weeks to go in as a public patient, if that’s what you have to do, is actually going to adversely affect the outcome of your treatment, because it could be a huge financial difference.”
Centrelink 13 27 17 www.centrelink.gov.au To enquire about Disability Support Pensions, Mobility Allowances, Carer Payments, Carer Allowances and Sickness Allowances.
Cancer Council’s Financial Assistance Program 13 11 20 The Cancer Council offers support to people in financial hardship. Call them for more information about this program.
Medicare 132 011 www.medicareaustralia.gov.au To find out what tests and treatments are covered by Medicare and how much money you will get back.