Rising Cancer & other Critical Illness Incident Rates and Claim Costs: Some Practical suggestions for Benefit Leaders

According to the Live Mint & Medi Assist report “Cancer Was the Fastest-Growing Ailment in 2024”, cancer emerged as the fastest-growing ailment in India in 2024, followed closely by cardiac diseases. The report reveals a 10–12% year-on-year increase in cancer incidence rates.

As someone deeply invested in the employee benefits space, these statistics don’t come as a surprise. What is concerning, however, is the lack of urgency among Benefits Managers, insurers, and advisors to address this growing risk. Rising treatment costs and increasing incidences of critical illnesses demand immediate and deliberate action.

Here are some practical solutions that can provide short-term relief while setting the foundation for long-term resilience:

Short-Term Measures: Prioritize Budget for Maximum Impact

1. Consolidate Health & Wellness Budgets: Employee health and wellness budgets are often fragmented across various programs, many of which deliver little measurable return on investment (RoI). Consolidating these budgets can ensure resources are channeled toward initiatives that create tangible value.
2. Shift to High-Impact Coverage: Current trends show a disproportionate focus on OPD (Outpatient Department) insurance benefits, which incur high transaction costs but deliver minimal support in critical moments. For instance, reallocating an OPD budget of INR 10,000 per employee toward personal top-up insurance or critical illness coverage could translate into financial protection of INR 30–50 lakh, providing a far greater impact.
3. Bundle Critical Care: Support when employees face critical illnesses like cancer, they require more than financial support. Guidance in selecting the right doctors, creating treatment plans, and exploring financing options is critical. Sadly, these services are often overlooked by Benefits Managers and brokers.

Recognizing this need, we at Volo acquired DCodeCare (www.dcodecare.com) —a first-of-its-kind cancer care management program. DCodeCare offers end-to-end support, from diagnosis and treatment to caregiving assistance. Programs like this not only address critical care needs but also foster trust and long-term engagement with employees.

Long-Term Strategies: Build Sustainable Impact

To create more effective employee benefit programs, a strategic, long-term approach is essential:

1. Adopt Multi-Year Strategies: Move away from annual policies to adopt 3–5-year plans that allow measurable outcomes and sustainable improvements.
2. Enable Flexible Benefits: Employees’ needs are diverse and evolving. Offering customizable benefits like critical care top-ups or enhanced parental health plans empowers employees to tailor their coverage to their unique circumstances.
3. Integrate Preventive Care: While critical illnesses are often unpredictable, preventive care can reduce the long-term burden. Collaborating with providers like DCodeCare can help organizations take a proactive stance on employee health, lowering risks and costs.

A Call to Collaborate

Employee well-being is not just a line item on the budget—it’s a cornerstone of organizational success. While some in the broker fraternity may hesitate to embrace this shift, prioritizing high-value, long-term programs is no longer optional. It’s the only way to address rising medical costs while delivering meaningful value to employees.

Let’s reimagine employee benefits—not just to support well-being but to transform lives. Together, we can create a future where employee benefits truly make a difference.

For further insights, feel free to explore my previous article - Unveiling the Iceberg Beneath the Surface https://www.dhirubhai.net/pulse/employee-benefits-unveiling-iceberg-beneath-surface-mohit-agarwal-fbg7f

For any further comments/suggestions, feel free to reach out to me at [email protected] Volo Health DCode Care - a Volo Health Company Tushar Rastogii Preeti Veenam Tanu Ahuja Volo Health Insurance TPA Pvt Ltd #cancer #employeebenefits #healthinsurance #rewards #benefits #humanresources #HR #employeewellbeing #rewardsbenefits #insurance