How Much Does Chemotherapy Cost?

A person holding a cancer patient's hand
| 9 min read Financial Assistance

Almost everyone in the United States has been touched by cancer. Whether you’ve recently been diagnosed with cancer or have a friend or loved one currently navigating a cancer diagnosis, the entire process can feel overwhelming. Treatments can also be costly, putting a heavy financial burden on patients and their loved ones. Preparing for these costs is crucial, and knowing how much chemotherapy will cost is an important first step. In this article, we’ll look at chemo and its costs, as well as the financial resources, like crowdfunding, available to help you alleviate the financial strain of chemotherapy.

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What is chemotherapy?

To start, it’s important to understand one of the most common cancer treatments – chemotherapy. According to the Mayo Clinic, chemo is a drug treatment that uses powerful chemicals to kill fast-growing cells in your body. Because cancer cells grow faster than other types of cells, chemotherapy is most often used to treat cancer. Chemotherapy can be used:

  • As a primary treatment for cancer, curing it without other treatments
  • To kill hidden cancer cells, especially after other treatments like surgery. This is known as adjuvant therapy
  • To shrink a cancerous tumor and to prepare your body for other treatments. This is called neoadjuvant therapy
  • As a way to relieve signs and symptoms of cancer. This is called palliative chemotherapy

Now that you understand how doctors use chemo to treat patients, let’s look at the financial impact of chemotherapy treatments and the entire financial picture for cancer patients.

Understanding the full scope of cancer treatment costs

Cancer treatments can be incredibly expensive, and these costs include all of the additional treatment surrounding the direct oncology care. Let’s break down the cost of cancer care, starting with the cost of chemotherapy.

Chemotherapy costs

Unfortunately, there is no one-size-fits-all price for chemotherapy. The cost can vary significantly depending on the type of cancer, your treatment plan, and whether the chemotherapy medicine is taken orally or through an IV. Some studies put the average cost of chemotherapy at $1,000 to $12,000 per month. Multiply these costs on a yearly basis, and the costs skyrocket quickly. In addition to the type of chemotherapy you receive, other cost factors include your health insurance type, where you live, whether you’re being treated in an outpatient clinic or hospital, and whether you need additional care due to side effects from the medicine, including pain, nausea, diarrhea, and anxiety.

Out-of-pocket costs

While many who have insurance can expect it to help them pay for their cancer treatment, their out-of-pocket costs can still be substantial. While exact costs will vary, over 20% of survey respondents in 2019 said they spent over $20,000 annually on cancer costs. Even those with Medicare are not exempt from high care costs. A 2017 study found that Medicare enrollees paid up to $8,000 in out-of-pocket costs related to chemotherapy.  Uninsured and underinsured patients often face higher costs for care, too. According to the American Cancer Society, uninsured cancer patients averaged over $16,500 in out-of-pocket costs, although this data doesn’t show the highest individual cost totals.

Treatment and care phases

The cost of cancer treatment can also vary based on the treatment phase the patient is currently in. The National Cancer Institute categorizes care into three broad categories: Initial care, continuing care, and end-of-life care. These cost estimates include medical services that can be attributed to cancer and oral prescription drug costs. For all types of cancers, the average patient cost in the first year of the cancer diagnosis was $43,516.10, the average per-year continuing care costs were $5,517.60, and the average end-of-life care costs were $109,727.30. As you can see, living with cancer can not only take a physical and emotional toll but also a financial one.

Insurance coverage and financial assistance programs

For those who have insurance, you may get some financial relief due to your health insurance plan covering many of these cancer-related costs. However, the extent of your coverage will depend on factors including:

  • Premiums: This is your monthly cost you must pay to stay covered by your insurance plan
  • Deductibles: This is your out-of-pocket threshold that must be met before your insurance plan will cover costs of care. 
  • Co-payment: This is a flat fee you pay per healthcare service, prescription, or procedure.
  • Co-insurance: This is a percentage you pay on the total cost of a healthcare service, prescription, or procedure.
  • Out-of-pocket maximums: This is a limit that caps your financial responsibility before your health insurer pays 100% of covered, in-network benefits
  • In-network or out-of-network: This is where you receive care. In-network providers cost less because your insurance company has already negotiated with them. Out-of-network providers can cost much more and may not be covered by your plan.

If you have Medicare, it will cover the costs of cancer-related care. For cancer patients, Medicare Part A (hospital insurance) covers chemo for hospital inpatients and Medicare Part B (medical insurance) covers chemo for hospital outpatient, doctor’s office, or freestanding clinic services.

Medicare covers chemotherapy if you have cancer. Medicare Part A (Hospital Insurance) covers it if you’re a hospital inpatient. Medicare Part B (Medical Insurance) covers it if you’re a hospital outpatient or get services in a doctor’s office or freestanding clinic.

Because Medicaid is a state-funded program, coverages may vary. While many offer some coverage for low-income individuals, check with your state’s Medicaid program to see what coverages are available for cancer patients.

It’s crucial to learn about your insurance plan and what your financial liability may be based on the treatments you receive. If you can’t pay for the costs of chemotherapy, there are financial assistance programs that can help.

Nonprofit assistance

There are many nonprofit organizations dedicated to helping cancer patients and their families pay for the care they need. While each program will have its own eligibility criteria, these programs are offered to help bridge the financial gap for those already suffering an incredible burden. Here are some of the programs that may be able to lend a hand:

Patient Advocate Foundation (PAF) Co-Pay Relief Program: Offers professional resource navigation services, serving as liaisons between patients and insurers, employers, or creditors.

Prescription medication assistance

The prescription costs for oral chemotherapy medicine can be expensive. However, many pharmaceutical manufacturers offer programs that provide discounted or free medications. These programs can significantly lower your prescription drug costs and help you navigate the financial aspect of cancer. Some of the most popular pharmaceutical assistance programs include;

Crowdfunding for chemotherapy costs

After utilizing insurance and prescription medication assistance, there’s a good chance you may still be financially strained by the costs of chemotherapy. That’s where crowdfunding can help. Thousands of people have started a fundraiser to help cover the cost of cancer costs like chemotherapy.

It’s a powerful way to raise money and provides a trusted way for your community to offer their support. So whether you just need a little help or you’re uninsured and need to pay for all of your treatment out of pocket, GoFundMe can help you get closer to the treatment you need. Starting a fundraiser on GoFundMe is free, and it only takes a few minutes to start. So if you need a way to bridge the financial gap, consider starting a crowdfunding campaign through GoFundMe.

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Strategies to manage cancer treatment costs

Cancer treatments such as chemotherapy can be incredibly expensive. However, there are some steps you can take to help you or a loved one manage these costs.

1. Work with a financial counselor

Many hospitals and healthcare systems have financial counselors on staff who can work with you to navigate treatment costs, identify any resources, and help you negotiate a payment plan. They can also review your insurance policy and help you gain a better picture of what’s covered and what isn’t.

2. Explore payment plans

Setting up a payment plan with your healthcare provider can be another way to manage healthcare costs. Often, healthcare providers allow you to set up a recurring monthly payment, spreading the entire cost of your medical bills over a longer period of time. These payment plans can be the most financially sound option because they are often zero interest versus high-interest credit cards, medical loans, or other kinds of financing.

3. Ask about generic drugs

Name-brand chemotherapy drugs can cost a significant amount more than generic alternatives. Therefore, asking your doctor if a switch to a generic drug is right for you could save you money. The most common generic chemotherapy drugs include cisplatin, carboplatin and methotrexate.

Anyone who is battling cancer knows the emotional and physical toll it can take, but as you’ve seen, it can also take a financial toll on patients and their loved ones. While there are many programs designed to financially assist people, crowdfunding is a great way to help fill the financial gaps and get the support you need. By starting a GoFundMe, you’re closer to alleviating the financial stress of chemo and cancer care, so you and your loved ones can focus on beating this terrible disease.

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Written by GoFundMe