What data stands out in reducing financial toxicity?

According to experts, financial planning in cancer care has become a critical tool in reducing the risk of financial toxicity caused by high treatment costs. Findings reported in the U.S. show that putting a budget, insurance coverage and income plan in place during the few weeks before treatment can affect both quality of life and the care process.

The National Cancer Institute defines financial toxicity as the severe economic strain patients and families face because of care costs. In a pilot study cited in the report, among 107 patients receiving blood cancer treatment, those who received comprehensive planning were said to have better mental and physical quality of life; it was also noted that among high-risk patients and those experiencing financial toxicity, those who received a financial planning intervention were 56% less likely to die during treatment.

Why is early planning seen as critical?

Dr. Carolyn McClanahan stresses that the few weeks between diagnosis and the start of treatment are the most important period for planning. At this stage, if paid leave runs out, it is recommended to consider options such as the Family and Medical Leave Act (FMLA) in the U.S., followed by continuing health insurance through COBRA.

Experts say the financial tools that can be used early on include:

  • Starting disability insurance applications without delay for medical expenses.
  • Itemizing out-of-pocket costs such as transportation to the treatment center on tax returns.
  • Exploring penalty-free early withdrawals from IRA accounts for health expenses that exceed the 7.5% threshold of adjusted gross income.
  • Reviewing Social Security disability payments and the compassionate allowance program, which speeds up applications for certain illnesses.

The rise in younger patients is adding to budget pressure

According to data from Memorial Sloan Kettering Cancer Center, several cancer types, including colorectal, breast, prostate, uterine, stomach and pancreatic cancer, are rising worldwide among people under 50. This trend is pushing individuals out of the workforce during their peak earning and saving years, while even insured patients face significant out-of-pocket costs from day one.

Foundation for Financial Planning CEO Jon Dauphiné said that despite having good insurance during his own treatment, he spent more than $1,000 out of pocket in the first week. The organization said that since 2018 it has provided financial planning support to 3,500 cancer patients through nearly $700,000 in grants via partner programs.

Advisers also review family budgets and estate plans

Financial planners quoted in the report say support is not limited to the monthly budget; account prioritization, digital access passwords, powers of attorney and advance care directives are also being updated. They emphasize that if decision-making capacity declines during treatment, family members may make mistakes that unnecessarily raise costs, which is why updating authorization documents and estate plans matters.

Employers can also step in in some cases. In one example cited by McClanahan, a workplace group life insurance policy purchased later allowed an employee diagnosed with terminal cancer to access $50,000 in life insurance coverage.