×
First-time login tip: If you're a REBA Member, you'll need to reset your password the first time you login.
13 Feb 2023
by Kelly McCabe, Chris Rofe

Cancer: How to cope with rising costs and support employees

With cancer becoming the biggest healthcare cost in the workplace, employers need to ensure they get the best results for their money - and for their employees

Cancer:  How to cope with rising costs and support employees.jpg 1

 

Cancer is becoming the number one driver of healthcare costs for employers, as highlighted by a recent webinar from Perci Health and Lockton People Solutions. Around 1.5% of the average workforce will receive a cancer diagnosis: however, the costs associated with the disease can be disproportionately high, exceeding 10% of an employer’s healthcare budgets.

For employers, cancer costs now outstrip those for musculoskeletal conditions, cardiovascular disease, and diabetes.

The message from the webinar was clear: while cancer in the workplace has a relatively low incidence, it has a very high impact.

How cancer is changing

One in two people will receive a cancer diagnosis in their lifetime, yet the disease remains largely misunderstood. For example, many of us still consider cancer to be a disease of old age, as well as one with a high death rate. Neither is true any longer.

The latest data from the American Cancer Society (2023) found that death rates from cancer have dropped by 33% since 1991 and continue to decline by around 1.5% each year, due largely to effective prevention and screening, and innovations in treatment. Cancer is rapidly becoming a disease that an increasing number of people not just survive, but live and – crucially – work with.

In short, there is a large and growing population of people living with cancer in the workplace, and they have unique and often unmet healthcare needs.

The impact on your workforce

When considering the impact of cancer in the workplace, it’s easy to focus on those with an active diagnosis. This group is by far the most visible, because they must notify their managers and usually take time off work (which can vary from 12–24 months, incurring significant costs). However, through more effective treatment and condition management, sufferers can return to work earlier and experience fewer side-effects.

However, when we talk about the cost of cancer, we need to consider everyone affected by the disease, not just those with a recent diagnosis. Two other groups often go overlooked, both in terms of support requirements and financial impact:

1. People living with and beyond cancer

This group of people often needs more support than those undergoing active treatment because they are no longer under regular care from an oncology team and are at a higher risk of other conditions, including diabetes, psychological illness, pain and fatigue, and have a higher risk of a recurrent or secondary cancer.

A 2019 study in the US found that annual medical expenditure for a cancer survivor to be two to four times higher than that of someone who has not had cancer, not just in the years that they have treatment but for many years afterwards. The good news is that effective interventions by a multidisciplinary team are proven to prevent long-term complications, reducing future costs.

2. Those looking after someone with cancer

Cancer charity Macmillan estimated that there were more than 1.4 million cancer carers in the UK in 2016 (although the true number is thought to be much higher as the caring status of many goes undocumented) and that 90% of these people are also juggling a job. This, often invisible, group experiences higher rates of psychological and physical illness and higher rates of absence. Many will need to make structural changes to their working pattern to manage their caring responsibilities.

The insurance challenge

Data from health and risk insurers indicates that increasingly cancer is the single biggest contributor to claims costs, specifically high-cost single health claims, which can have a major impact on future premiums.    

As Lockton People Solution’s Chris Rofe explained during the webinar: “We are seeing a challenge for employers who would like to do more to better support cancer initiatives in the workplace, but may be deterred by the potential cost. Also, insurer treatment of cancer in terms of underwriting, rules and eligibility vary. Employers need to take great care that their employees are receiving the level of cover that the policy was intended for.”

Combine insurance issues with a healthcare crisis, such as the UK is experiencing, and the devastating impact Covid-19 has had on cancer care within the NHS and charity-led support services, and the result is a significant gap in treatment and support.

According to Macmillan, 77% of patients cannot access the support they need at the time they need it. It’s not simply the responsibility of employers to bridge the divide, but in their interests.

From screening to diagnosis and beyond

To get the best results and reduce costs, employers need to provide support for cancer from screening to diagnosis through to survivorship, and for family members too. Employers are increasingly turning to digital solutions that can provide high-quality care at lower costs with reduced waiting times, leading to improved outcomes all round.

As well as an in-depth analysis of the workplace costs of cancer, the webinar provides a checklist of actions employers can take, including reviewing cancer policy and training line managers.

Watch a recording of the webinar here.

In partnership with Perci Health

Perci Health is the first digital platform bridging the gap between cancer and wellness.

Contact us today