Modeling Financial Insolvency and Income Loss Insurance in Head and Neck Cancer

TL;DR

Head and neck cancer treatment can lead to significant financial hardship, with many patients facing insolvency within six months of income loss.

Contribution

This study quantifies financial insolvency risks in head and neck cancer patients and highlights the need for income loss insurance.

Findings

16% of simulated HNC patients became insolvent after 3 months with total income loss, rising to 49% at 6 months.

Financial insolvency rates were lower with partial income loss or liquid savings, but still significant.

The study suggests a need for stronger income loss protection programs for cancer patients.

Abstract

Head and neck cancer (HNC) carries high morbidity, and its treatment can be functionally devastating, impacting a patient’s ability to work. While most patients have medical insurance benefits, studies on the impact of HNC on overall household finances have been limited.

This study explored the effect of HNC treatment on household finances and the feasibility of catastrophic income loss insurance.

This cross-sectional study was based on a population-level survey of American adults. Participants, aged 35 to 64 years, were respondents to the US Federal Reserve 2023 Survey on Household Economics and Decisionmaking (SHED).

With total income loss, 16% of simulated HNC patients were insolvent after 3 months, rising to 49% at 6 months. With a 50% loss in income, 3% of patients were insolvent at 3 months, increasing to 5% at 6 months. If savings were liquid, 0.5% of patients were insolvent at 3 months, rising to 1.3% at 6 months.

Our findings underscore the substantial financial vulnerability faced by patients undergoing treatment for HNC. Even in a simulated model based on national economic data, nearly half of patients experiencing total income loss were insolvent by 6 months. Given the intensive and prolonged nature of HNC treatment, these financial challenges may compound physical and psychosocial stressors, affecting overall recovery and quality of life.

The model suggested a need for more substantial income loss protection programs. Financial hardship applies to other cancer types and merits further study into the household financial impact of HNC and other cancers.

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