Canver
Cancer care is a major contributor to soaring employer health care costs. Eighty-six percent of employers say their cancer care spend has increased since last year by a median rate of 11%, a new survey from the International Foundation of Employee Benefit Plans found.
“The data show that costs associated with oncological care have increased over the past year, reflecting a trend of higher health care costs overall,” said Julie Stich, the group’s vice president of content. “Organizations are continuing to offer the most effective cancer care treatments while also exploring cost-control techniques.”
Steerage techniques are strategies used by insurers and employers to influence plan members toward using certain health care providers, facilities or pharmacies to control costs and improve outcomes. The most popular steerage techniques organizations are using to mitigate cancer care costs and improve patient outcomes include:
- Nurse navigators, 63%
- Second opinions, 58%
- Centers of excellence, 42%
- Treatment center networks, 24%
- Virtual care clinic vendors, 18%
- Value-based contracts, 17%
- Point-of-care testing, 15%
The goals of using these steerage techniques vary among organizations. Of those using steerage techniques, the most common goals are outcome improvements (66%), personalized support (59%), negotiated prices (33%), specific fee model use (27%) and network scope to fit plan population (11%).
Of the 27% of employers with the goal of specific fee model use, the most popular models used are shared-savings/risk-sharing fee model (50%), bundled-rate fee model (35%), pathways fee model (20%), per-procedure/service fee model (20%) and fixed, per-employee per-month fee model (10%).
In a separate report from the foundation, employers who cited specialty and costly prescription drugs as the top reason for expected costs increases in 2026 ranked cancer drugs second only to GLP-1 prescriptions. Overall, employers project a median health care cost increase of 10% in 2026, up from an 8% projection this year.
“The 10% projected increase is attributed to a variety of factors impacting organizations’ medical plan costs, with catastrophic claims and specialty/costly prescription drugs topping the list,” Stich said. “Employers have indicated that cost-sharing, plan design and purchasing/provider initiatives will be the most impactful techniques to manage costs.”
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