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Cancer is the top health care cost driver. Prevention is the best medicine.

Published: August 1, 2024

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Cancer is the top health care cost driver for U.S. employers.1 Cancer-related costs account for 16% of their annual health care spend — and are expected to increase nearly 30% by 2027.2 Competitive business leaders are searching for sustainable solutions that can help them mitigate these trends.

 

By prioritizing prevention and early detection, employers can support the health of their workforce and minimize the financial impact of cancer. At least 42% of new cancer diagnoses can be prevented with the right support.3 And while not all cases can be prevented, early detection dramatically improves survival rates — and significantly reduces recovery timelines and treatment costs.

At least 42% of cancer cases are preventable
Early cancer detection supports 6–8 times higher survival rates and 75% lower treatment costs

Cancer is being diagnosed at earlier ages — and later stages

Direct medical costs for cancer care already add up to $209 billion per year.6 But nearly half of U.S. employers predict a spike in late-stage diagnoses among their workers in the coming years due to delayed screenings during the pandemic, which will drive treatment costs up significantly.7

 

Cancer is also becoming increasingly common during employees’ prime working years:

  • Diagnoses between the ages of 30–39 are up nearly 20% from 2010.8
  • The rate of cancer in people under 50 is expected to increase another 31% by 2030.9
$209B per year in direct medical costs in 2020 — expected to increase nearly 30% by 2027.
Employers also pay $139B per year in indirect costs.

On top of direct medical costs, employers’ indirect cancer-related costs add up to another $139 billion each year.12 For example, 7 in 10 employees with cancer miss 4 weeks of work or more.13 And when employees are diagnosed after the disease has spread, their employees pay more than $15,000 in additional indirect costs during the first year alone.14

The power of prevention and early cancer detection

A healthy lifestyle is the first line of defense. 19% of cancers are caused by smoking, and at least 18% are caused by a combination of excess body weight, drinking alcohol, poor nutrition, and physical inactivity.15 And while there’s no surefire way to eliminate risk altogether, prioritizing prevention can go a long way to minimize it.

 

Evidence-based screenings are essential for detecting cancer at its earliest stages. With early detection, survival rates are 6 to 8 times higher — and treatment costs are 75% lower.16 But despite widespread coverage for lifesaving screenings like mammograms and colonoscopies, many employees aren’t getting them.

 

Too many Americans are overdue for recommended screenings:17

  • Breast cancer: 25%
  • Cervical cancer: 25%
  • Colorectal cancer: 40%
  • Prostate cancer: 66%

It’s also important to note that overall screening rates are even lower for Black, Latino, and Asian employees compared to their white counterparts.18 As a result, employees in these groups are disproportionately affected by late-stage cancer diagnoses and often have higher mortality rates.

 

Two people in a medical office

Are your employees getting the cancer screenings they need?

Most employers rank cancer screenings as a top health care priority, but only 25% believe their employees’ primary care doctors are screening proactively enough.19 And while 90% of employers say access to data on employee screening rates is important, only 16% can see how many of their employees are actually getting these life-saving tests.20

Designing your workforce cancer prevention strategy

“Cancer treatment has come a long way, but prevention is still the best medicine,” says Farah Brasfield, MD, regional chief of hematology and oncology at Kaiser Permanente. “Employers can absolutely play a role — starting with choosing a health plan that’s proven to prioritize prevention and early detection as part of a holistic, personalized, evidence-based approach to care.”

 

Two people in a medical office

Choose the right health plan

Here’s what to look for in a health care partner:

  • A value-based model invested in prevention - Unlike fee-for-service models that chase higher volume, value-based care organizations chase better outcomes. Value-based care teams are highly motivated to prevent cancer or catch it early, which is better for employee health and less expensive.
Two people in a medical office

    Access to primary care physicians and cancer specialists within the same integrated system can also accelerate care and improve outcomes — bridging the gaps that commonly exist between screening, diagnosis, and treatment. As Dr. Brasfield explains, “When primary care and oncology teams work together, they can make shared decisions based on their combined experience and expertise. Together, they can prevent cancer more effectively, and treat it more successfully.”

     

  • Personalized support for prevention and early detection
    Different employees have different risk factors that need to be identified, understood, and monitored. In addition to the screenings recommended for everyone, make sure your health plan takes into account social, environmental, and genetic risk factors, so additional screening measures are accessible to employees with the greatest risk.
Two people in a medical office

 

As Dr. Brasfield notes, “It’s important to assess the risks and benefits, and have a deep understanding of each patient’s health history and risk factors before recommending more invasive tests. For example, a physician who’s truly invested in their patient’s total health will want to minimize radiation exposure through repeated scans whenever possible.”

There are many new point solutions for cancer that employers can purchase — from body scans to genetic testing and more. But these shouldn’t be viewed as one-size-fits-all preventive measures. They’re expensive, isolated approaches that most employees don’t need, and can sometimes do more harm than good. It’s important to be cautious when considering these point solutions, because they’re often one-off encounters that won’t actually move the needle. There are better ways to invest your cancer prevention dollars.

  • Transparent data and reporting - The right health plan will provide detailed reporting, including data on how many employees are up to date with preventive screenings. Ideally, this data should also be broken down by race and ethnicity — so you can be confident that all members of your team are receiving equitable preventive care that can protect them against health disparities in cancer prevention, treatment, and survivorship. These insights can help you create tailored workforce health programs that drive meaningful and measurable results.

Employee walking a bicycle to an office

Create a work culture that promotes health

  • Generate awareness for cancer prevention
    Educate employees about common risk factors, the importance of regular screenings, and how they can access care and support.
  • Empower employees to prioritize prevention
    40% of employers say their teams can’t find time in their schedules to get preventive screenings.22 Creating policies that actively encourage taking time off for routine care is a great first step. Consider offering an incentive to employees who stay current with screenings, and exploring alternative options, like at-home tests, that can make screenings more convenient.
  • Share local resources to address social health risks
    Up to 75% of cancer cases are closely associated with social determinants of health (SDoH), such as housing insecurity, limited access to nutritious foods, and more.23 SDoH also factor into many of the disparities that exist in cancer prevention and lack of access to equitable care — and influence the likelihood of survival versus mortality. Ensuring that your employees have access to community resources to help them address their social health needs — along with access to high-quality health care — can make a meaningful difference.
Employee walking a bicycle to an office
  • Provide healthy lifestyle support

    “Lifestyle medicine is essential to preventing cancer — and many other health issues,” shares Dr. Brasfield. “As a physician, I believe that quality sleep is medicine. Regular exercise and good nutrition are medicine. They’re all so important — not just for lowering cancer risk, but for being healthy in general.” Employers can encourage their teams to adopt healthier habits by providing things like:

    • Tobacco cessation programs
    • Free or discounted fitness classes
    • Education about nutrition and healthy eating
    • Weight management support
    • Self-care resources that can help with sleep, stress, and more

Proactive cancer prevention makes solid business sense

When employers step up as advocates and allies for cancer prevention, everyone wins. Business objectives align with workforce health goals, resulting in better outcomes — and lower health care costs for employers and employees alike. By embracing cancer prevention as a workforce health priority, you’re making the right choice for your people — and your business.

Normalizing Cancer Conversations in the Workplace

Use this guide as an actionable resource to champion prevention in the workplace and normalize difficult conversations surrounding cancer.
Get the guide
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Photo of Dr. Farah Brasfield

About our expert

Farah Brasfield, MD

Farah M. Brasfield, MD, is the Southern California Permanente Medical Group Chief of Hematology Oncology and physician leader of their multidisciplinary Excellence in Cancer Care program. She is also co-chair of Kaiser Permanente’s genomic oncology national program, as well as a National Cancer Institute investigator, and a sub-investigator for clinical trials in the NCI community oncology program. Dr. Brasfield practices at the Kaiser Permanente Orange County – Anaheim Medical Center, and received a Vohs award for her work in colorectal cancer mortality reduction.

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Footnotes:

  • 1"Trends to Watch in 2024,” Business Group on Health, November 28, 2023.

  • 2“U.S. Oncology Survey: Employers Expect Cancer Costs to Spike by Up To 30% in Three Years, Hungry for Value-Based Models,” Carrum Health, February 26, 2024.

  • 3“Cancer Facts and Figures 2024,” American Cancer Society, 2024.

  • 4See note 3.

  • 5“Employer Insights Report 2024,” Color Health, 2024.

  • 6David C. Grabowski et al., “Assessment of Medical and Public Assistance Expenditures and Employment Among US Adults with Cancer Diagnoses,” Journal of the American Medical Association, May 26, 2023.

  • 7See note 1.

  • 8Courtney Vinopal, “Cancer Rates are Rising Among People Under Age 50. Here’s Why Employers Should Care,” HR Brew, October 10, 2023.

  • 9Jianhui Zhao et al., “Global trends in incidence, death, burden and risk factors of early-onset cancer from 1990 to 2019,” BMJ Oncology, 2023.

  • 10See notes 2 and 6.

  • 11Harlan Levine, “Health Care Navigation’s Vital Role in Cancer Care,” ALM Benefits Pro, April 6, 2023.

  • 12See note 11.

  • 13“New Survey Shows Clear Need for Paid Leave Among Cancer Patients and Survivors,” American Cancer Society Cancer Action Network, December 7, 2021.

  • 14Ze Cong et al., “Productivity Loss and Indirect Costs for Patients Newly Diagnosed with Early- versus Late-Stage Cancer in the USA: A Large-Scale Observational Research Study,” Applied Health Economics and Health Policy, August 30, 2022.

  • 15“Risk of Dying from Cancer Continues to Drop at an Accelerated Pace,” American Cancer Society, January 12, 2022.

  • 16See note 5.

  • 17See note 5.

  • 18Michelle Tong et al., “Racial Disparities in Cancer Outcomes, Screening, and Treatment,” Kaiser Family Foundation, February 3, 2022.

  • 19See note 5.

  • 20See note 5.

  • 21See note 5.

  • 22See note 5.

  • 23Zehau Yu, et al., “Assessing the Documentation of Social Determinants of Health for Lung Cancer Patients in Clinical Narratives,” Frontiers in Public Health, March 28, 2022.