Cancer is the second-leading cause of death in the U.S. and a growing driver of employer health plan costs. Nearly 2 million people are diagnosed each year, and 5 out of every 100 employees have a history of cancer. As the population ages, the financial impact continues to rise. In fact, Business Group on Health’s 2026 Employer Healthcare Strategy Survey named cancer the top driver of healthcare costs for the fourth straight year.
Types of Cancer
Cancer remains one of the most significant cost drivers for employer health plans. The most common and costly cancers affecting today’s workforce include breast, lung, colorectal, prostate, and blood cancers, with treatment expenses rising sharply when diagnoses come late. Early detection through routine screenings can improve outcomes and help control costs. Employers should also recognize the mental health impact of a cancer diagnosis, as emotional distress can affect recovery, treatment adherence, and overall healthcare utilization. Supporting both physical and emotional needs is essential to caring for employees and managing long-term plan costs.
Risk Factors for Cancer
While genetics and family history matter, many cancer risks are tied to preventable factors like tobacco use, age, obesity, alcohol use, physical inactivity, and environmental exposure and family history. The World Health Organization estimates that 30% to 50% of cancer cases may be preventable through healthier behaviors and effective prevention strategies. As the workforce ages, early detection becomes even more important, making employer-supported screenings and preventive care valuable tools for improving outcomes and helping control costs.
The Cost of Cancer Care
Cancer remains one of the largest and fastest-growing healthcare cost drivers for employers. U.S. cancer care costs exceed $200 billion annually and are projected to surpass $245 billion by 2030. Treatment often involves surgery, chemotherapy, radiation, specialty drugs, and ongoing monitoring, leading to significant medical expenses and lost productivity.
Cancer has consistently been the top condition driving employer healthcare spending. Costs are rising rapidly due to expensive specialty medications, with some cancer drugs costing $10,000 to $30,000 per month. New therapies, including immunotherapy and CAR-T treatments, are expected to further increase costs.
In addition to direct healthcare expenses, cancer is a leading cause of catastrophic claims, disability, absenteeism, and reduced workplace productivity. Employers also bear indirect costs when employees take time off for treatment or caregiving responsibilities. Overall, cancer-related productivity losses and missed work time cost employers an estimated $139 billion annually.
Cost-mitigation Strategies for Employers
About 2 million Americans are diagnosed with cancer each year, and nearly 18.1 million survivors are living today, many of them in the workforce. That makes cancer a major cost and care concern for employers. By investing in prevention, early detection, and employee support, organizations can help reduce both the financial and human impact. Common strategies include:
- Encourage preventative services. Early detection is one of the most effective ways to reduce cancer’s impact on both employees and employer health plans. Employers can support these efforts through education, screening awareness, and workplace policies that encourage preventive care.
- Promote cancer screenings as a core preventative benefit. Early detection can make many cancers more treatable. Employers can support screening participation by clearly communicating no-cost preventive benefits, sending timely reminders, and making screenings easier to access. When employers emphasize the value of preventive care and reduce barriers, employees are more likely to take action.
- Evaluate centers of excellence (COE) programs. Cancer COE programs connect employees with high-quality treatment centers that specialize in specific cancer types. This approach can reduce unnecessary procedures, improve outcomes, and lower overall costs, especially for self-insured employers managing catastrophic claims.
- Address specialty drug costs proactively. Partner with your pharmacy benefit manager to optimize cancer drug formularies, apply step therapy when appropriate, and adopt biosimilars when available. As cancer drug costs rise, proactive pharmacy management can play a major role in controlling overall healthcare spending.
- Offer holistic benefits that support employees from diagnosis to treatment and recovery. A cancer diagnosis can be overwhelming, and employers can help by making sure employees understand and can access key benefits such as medical and pharmacy coverage, disability leave, FMLA, employee assistance program (EAP), and supplemental cancer or critical illness coverage. Because many plans don’t cover indirect expenses like lost income, travel, or home care, voluntary benefits can provide valuable added support.
- Consider cancer navigation programs. Dedicated cancer care navigators can help employees understand their diagnosis, coordinate care, and avoid unnecessary treatments. These programs can improve adherence, speed return to work, and reduce overall costs. Some employers also offer navigation support through an EAP, giving employees private, confidential access to help.
- Be accommodating and support employees’ return to work. Employees undergoing cancer treatment may need flexible schedules, remote work options, or reduced hours to manage their care. Supportive leave policies, workplace flexibility, and compliance with laws like the ADA and FMLA can help employees stay connected, return to work more smoothly, and remain engaged throughout their recovery.
Employers can make a meaningful impact by investing in cancer prevention, early detection, and employee support. A healthier, better-supported workforce benefits everyone.
Summary
Cancer is one of the fastest-growing cost drivers in employer health plans, affecting organizations through specialty drug costs, catastrophic claims, lost productivity, and caregiver strain. Employers can help manage both the human and financial impact by promoting early screenings, implementing COE programs, addressing specialty drug spend, and supporting employees throughout diagnosis and treatment. Download the bulletin for more details.
