CNBC CEO Council - Oct. 4, 2024
Focusing on detection - The growing financial toxicity of cancer, for employees and employers.
In her role as CEO of the American Cancer Society, CEO Council member Karen Knudsen frequently interacts with CEOs at companies and organizations of all sizes.
Knudsen, who spoke with us alongside the start of Breast Cancer Awareness month, said there is one topic that is more frequently on the minds of employers and employees when it comes to cancer: the financial ramifications.
“Right now, in the United States, cancer care has become the No. 1 health-care cost for mid- and large-sized self-insured employers,” Knudsen said.
Across America, the incidence of breast cancer in women has continued to rise by 1% a year between 2012 and 2021, according to data recently published by the ACS. While the data showed that the death rate for breast cancer has dropped drastically in recent years, thanks to advances in treatment and early detection, the data also showed the concerning trend of women younger than age 50 seeing a steeper increase in breast cancer than women older than 50. Similar trends to those of earlier age impacts on other cancers are also being observed.
“The profile of cancer is changing,” Knudsen said, adding that amid this sort of trajectory, this topic should be “top of mind” for any CEO.
Adding to that is what Knudsen calls the increasing financial toxicity that surrounds cancer.
“There is an individual burden that we know is real. In the U.S., 40% of the people who receive a new cancer diagnosis deplete their life savings in the first two years. That is not sustainable,” Knudsen said, also highlighting the significant cost that an employer will bear as well.
Knudsen said there is an obvious strategy to combat this: screening that leads to early detection.
“To put some numbers behind it, the reduction in cost for someone who is diagnosed at stage one is up to 75% and the survival for that individual is six to eight times higher than if they’re diagnosed at stage four,” she said. “So, it’s the right thing to do for the person. It’s the right thing to do as well for the organization as a whole.“
Knudsen acknowledges that there are many roadblocks in the way of getting people to get these tests done and keep them top of mind each year, something that occurs even within her own field of health care.
“You would think that if you have this employee base that wakes up every day to cure people or prevent disease, that they would have this heightened view of wellness for themselves. Well, they’re just like everyone else,” she said.
While some employers offer a discount on health care or other wellness-related programs for staying up-to-date on testing, Knudsen said, “I’d love to believe that carrots work; they generally don’t.”
Instead, Knudsen said CEOs should look to address the friction points, whether that’s not having the time to go to an exam, having difficulty scheduling an appointment, or a lack of education about cancer. ACS recently expanded its partnership with Color Health to provide a cancer solution for employers and labor unions.
Recent ACS data suggests that nearly 40% of Americans will develop cancer at some point in their lifetime, and Knudsen noted that even for people who may not receive that sort of diagnosis, they’ll likely have family and friends who do.
“The overall annual spend in the U.S. for cancer, just for the commercial insured population, is upwards of $156 billion every year,” Knudsen said. “These are not small costs, so whether CEOs realize it or not, they are paying for cancer care, and they are challenged in their workforce with individuals who are having these later-stage diagnoses — arguably needlessly.”
“All boats rise when there’s awareness and greater attention to early detection,” Knudsen said.
