The latest ‘Cost of Care’ report has revealed the financial burden of illness, costing some Australians millions of dollars.
Zurich Financial Services has released its updated analysis on the growing incidences and cost of illness to help better understand the potential financial implications for Australians. It compares publicly available data on the prevalence, incidence, and survival rates, calculating the average lifetime and out-of-pocket cost for more than 30 medical conditions, including mental health, cancer, respiratory and heart disease.
The report highlights the significant financial burden of treating certain medical conditions in Australia. Unfortunately, many of these are growing in prevalence in an environment of increased cost-of-living pressures.
Mental health conditions – including affective disorders, anxiety and substance abuse – were the most prevalent in Australia in recent years, with over 12 million active cases between 2020 and 2022. This is followed by COVID-19, which has seen approximately 11 million reported cases over a similar period[1].
It revealed that spinal cord injuries had the highest lifetime cost in 2023, averaging between $6.8 million and $12.9 million. This is followed by childhood cancer, costing around $1.09 million, and Motor Neurone Disease at an estimated $201,340. Other common illnesses that also come with a significant financial burden include type one diabetes, costing an average of $143,000 over a lifetime, and chronic kidney disease, with kidney failure, costing around an average of $41,748 per year.
Highlighting the rising prevalence of cancer in Australia, the report found that eight of the top ten most occurring cancers had increased the number of yearly cases since 2018. In 2023, prostate cancer was the most common and saw the steepest increase, with 25,487 cases, up 43.8% since 2018. This was followed by breast cancer with 20,668 cases, up 14.4%, and melanoma with 18,239 cases, up 27.4%.
Of the top ten most expensive cancers, all had an average lifetime cost of over $20,000, highlighting the financial pressure of these illnesses. Head and neck, and thyroid cancer have the highest average lifetime costs in 2023, at $109,300 each. These were closely followed by non-Hodgkin lymphoma at $100,190 and lung cancer at $85,420[2].
This report highlights the increased need to ensure that you are adequately insured to cover not only the cost of treatment but also the potential loss of income during the treatment and recovery of yourself or a loved one. Please contact us to discuss how we can help you protect against the financial impact should you or a loved one experience significant illness or disease.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.
[1] https://www.zurich.com.au/latest-news/media-releases/2024/zurich-releases-cost-of-care-report-on-health-conditions-in-australia.html
[2] https://www.ifa.com.au/risk/34368-understanding-the-financial-impact-of-illness
