Early cancer detection improving but treatment costs drain savings: Report

Standard health insurance policy of Rs 500,000 often inadequate to meet treatment costs, it says

 

India has improved early detection of cancer over the past three years but the financial strain on families remains severe, largely because health insurance coverage has not kept pace with the disease’s treatment, according to a report.

 

The report by Plum, an “employee health benefits platform”, studied more than 100,000 cancer-related insurance claims between 2023 and 2025. It found that early-stage detection has improved by more than 60 per cent in the last three years. Many cases are identified as carcinoma in situ, or stage 0 cancer, where abnormal cells are detected before they become invasive. This suggests that screening, awareness, and access to diagnostics are improving.

 

 

Breast cancer remains the most common malignant cancer, accounting for nearly 12 per cent of total cases. Blood and lymph cancers, colorectal cancer, and lung cancer follow. The data also shows sharp differences by age and gender. While blood cancers dominate neonatal cases, liver and testicular cancers tend to appear much earlier in life, whereas prostate cancer largely affects those above 50.

Treatment costs run into lakhs

While earlier detection improves outcomes, it does not reduce costs. Cancer treatment typically involves repeated hospitalisation, chemotherapy cycles, and diagnostic tests spread over months, and sometimes years. On average, a cancer patient raises four insurance claims in a year, with one in five patients making more than five claims annually.  ALSO READ | AI eroded doctors' ability to detect cancer within months in study 

The most expensive cancers to treat include colorectal cancer, brain cancer, and stomach cancer, with average cumulative costs ranging from Rs 450,000 to over Rs 500,000. In high-complexity cases, total treatment costs can exceed Rs 1500,000, equivalent to 15 years of savings for a household setting aside Rs 100,000 a year.

Insurance gaps widen the burden

Despite high treatment costs, insurance payouts are falling. The report shows that deduction rates on cancer claims have risen sharply over the last three years, reaching 38 per cent in the first half of 2025. Even cancers with the highest economic burden often receive partial coverage, forcing families to pay a significant share out of pocket.

 

A standard health policy with a Rs 500,000 sum insured is often inadequate. Around one in eight cancer patients exhausts this cover within a year, while many others come close.

 

Abhishek Poddar, cofounder and chief executive officer of Plum, said cancer care has evolved faster than insurance design. “What the data shows is clear: Families are doing the right thing — detecting cancer early and following advanced treatment plans — but they’re still left financially exposed. It’s time for a fundamental reset in how we insure long-term illnesses like cancer.”

 

The findings highlight a growing personal finance risk. As cancer increasingly becomes a long-term condition rather than a short treatment episode, households may need higher health cover, fewer sub-limits, and better protection against modern treatment exclusions to avoid seeing years of savings wiped out by a single diagnosis.