Thursday, February 20, 2025

Cancer’s True Cost: How Financial Strain is Reshaping Care for Patients and Hospitals

The financial burden of cancer is even heavier than previously thought, a recent report from the American Cancer Society (ACS) reveals. With soaring treatment costs and mounting patient expenses, the economic toll on individuals and health systems is proving to be a formidable challenge.

Cancer Treatment Costs: A Growing Burden

The ACS’s 2025 Cancer Facts & Figures report underscores the rising cost of cancer care. While the National Cancer Institute estimated cancer-related medical expenses at $208.9 billion in 2020, the ACS suggests this figure is an underestimate.

Patients alone shoulder a staggering $21.1 billion annually, including nearly $5 billion in “patient time costs.” These include travel expenses and income lost due to treatment schedules. Beyond medical bills, patients face indirect costs such as missed work, childcare, and additional out-of-pocket expenses for medications and supportive care.

For many, these numbers are more than just statistics—they are daily struggles. Dr. Rebecca Miksad, a medical oncologist and chief medical officer at Color Health, shared her firsthand experience. “It’s heartbreaking to explain to patients that their medication copay could mean choosing between their treatment and keeping their lights on,” she said.

Cancer patient receiving treatment in hospital setting

What Drives High Cancer Costs?

The price tag on cancer care reflects the complexity of modern medicine. Innovations like immunotherapies and biologics promise better outcomes but come at a steep cost due to their development and manufacturing processes.

Even older, brand-name cancer drugs have seen significant price increases. A 2020 study in the Blood Cancer Journal found the U.S. spent $6.8 billion more on these drugs between 2012 and 2017, while other countries saw a collective decrease of $1.7 billion.

However, the costs don’t stop at medications. Insurance deductibles, copays, travel expenses, and specialized nutrition or mental health care can add up quickly. For those under 65 with commercial insurance, the financial burden is often greater due to high-deductible health plans.

“Cancer costs are increasingly shifting from insurers to patients,” said Michael Heimall, CEO of the HealthWell Foundation. This nonprofit organization supports underinsured patients and fields nearly 6,000 calls daily for financial assistance.

Hospitals Are Feeling the Strain

The impact of cancer costs extends beyond patients to the hospitals that treat them. While large, well-resourced institutions with robust oncology programs can balance the books, smaller hospitals in underserved areas often struggle.

Uncompensated care is a significant challenge, according to Heimall, particularly in urban centers serving minority populations. These communities face higher rates of advanced-stage cancer diagnoses due to limited access to preventive care.

For example, the cancer mortality rate for Black men is 16% higher than for white men, and Hispanic individuals are nearly twice as likely to develop stomach or liver cancer. Late-stage diagnoses mean higher treatment costs, placing additional pressure on already stretched hospital resources.

Ironically, oncology programs are sometimes the financial backbone of hospitals, with revenue from cancer care subsidizing other critical but less profitable services, such as pediatrics and infectious disease care.

Potential Solutions to Reduce Costs

Addressing the high cost of cancer care requires systemic changes. Expanding Medicaid and reducing patient cost-sharing could ease financial burdens. Advocating for drug price regulation and transparency is another key area for reform.

Dr. Miksad emphasized the value of biosimilar and generic medications, which saved U.S. cancer patients $13.6 billion in 2019. “Encouraging the use of these alternatives could significantly lower costs without compromising care,” she said.

Telehealth is also emerging as a cost-saving tool. A 2023 JAMA Network Open study found that telehealth services save patients between $147 and $186 per visit by eliminating travel expenses and lost income. Expanding remote healthcare options, such as hospital-at-home programs and transportation assistance, could further alleviate financial strain.

A Path Forward

The fight against cancer is as much about economics as it is about medicine. Rising costs highlight the need for systemic reforms that prioritize affordability alongside innovation.

“Every dollar saved, every minute spared, is a lifeline for patients and their families,” Miksad noted. For many, these changes could mean the difference between financial ruin and survival.

Harper Jones
Harper Jones
Harper is an experienced content writer specializing in technology with expertise in simplifying complex technical concepts into easily understandable language. He has written for prestigious publications and online platforms, providing expert analysis on the latest technology trends, making his writing popular amongst readers.

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