Facing a cancer diagnosis is difficult enough without the added stress of figuring out how to pay for treatment. In the United States, cancer treatment can easily cost tens of thousands of dollars or more, depending on the type of cancer, the treatment plan, and how long care is needed. For older Americans, Medicare plays a critical role in helping manage these expenses, but even with coverage, there are still out-of-pocket costs to consider.
So, how much does cancer treatment cost with Medicare? The answer depends on a range of factors, including the kind of Medicare coverage you have, the type of treatment required, and whether care is received in or out of a hospital setting. Understanding how Medicare works and where gaps in coverage might exist can help you better prepare for the financial realities of cancer care.
Key Takeaways
- How much does cancer treatment cost with Medicare? On average, patients with Medicare can still face out-of-pocket costs ranging from several thousand dollars to over $10,000 annually, depending on the treatment plan and coverage details.
- What does Medicare cover? Medicare typically covers chemotherapy, radiation, surgery, and certain medications, but it may not cover all prescription drugs, support services, or experimental treatments.
- How can you raise funds for cancer treatment? Many retirees consider selling a life insurance policy through a life settlement to unlock funds and help cover the cost of care.
Medicare Coverage for Cancer Treatment
Medicare provides critical support for cancer patients, helping to offset the high cost of care. If you’re wondering how much cancer treatment costs Medicare, it’s important to understand exactly what Medicare covers – and where you might be responsible for out-of-pocket expenses. Coverage varies depending on the part of Medicare you have and the setting in which treatment is received.
Does Medicare Cover Cancer Treatment?
Yes, Medicare covers a wide range of cancer treatments. This includes medically necessary procedures such as chemotherapy, radiation therapy, immunotherapy, surgeries, and inpatient hospital stays. It also provides coverage for certain prescription drugs, lab tests, and preventive cancer screening.
Coverage eligibility depends on your Medicare plan (Original Medicare vs. Medicare Advantage) and whether the treatment is considered medically necessary. While Medicare helps reduce the burden, it doesn’t eliminate it entirely – patients may still be responsible for copayments, coinsurance, and deductibles.
Medicare Part A: Inpatient Cancer Treatment Coverage
Medicare Part A covers inpatient hospital care related to cancer, including surgeries, overnight stays, and time spent in a skilled nursing facility after hospitalization. If you’re admitted to the hospital for cancer-related treatment, Part A helps pay for:
- Room and board during your stay
- Medications administered during your hospitalization
- Some inpatient procedures and care by hospital staff
However, there are still costs to consider. In 2025, the Part A deductible is $1,632 per benefit period. After 60 days in the hospital, coinsurance costs (i.e., your portion of the bill) kick in and increase significantly the longer you stay. Skilled nursing facility care is also covered for a limited time – up to 100 days – provided it follows a qualifying hospital stay.
Medicare Part B: Outpatient Cancer Treatment Coverage
Medicare Part B covers outpatient services, which are a major component of most cancer treatment plans. This includes:
- Chemotherapy and radiation therapy are administered in a clinic or doctor’s office
- Visits with oncologists and specialists
- Diagnostic imaging, blood work, and cancer screenings
Patients are typically responsible for an annual deductible (currently $240 in 2025) and 20% coinsurance for most services. If you’re receiving chemotherapy drugs administered by IV in an outpatient setting, Medicare Part B generally covers these medications. However, oral cancer drugs may fall under a different type of Medicare, depending on the specific drug and how it’s administered.
Medicare Part D: Prescription Drug Coverage for Cancer Patients
Medicare Part D helps cover the cost of many prescription drugs, including those used in cancer treatment that are not covered under Part B. This typically includes oral chemotherapy drugs, anti-nausea medications, hormone therapies, and pain management prescriptions.
The cost of cancer medications under Part D depends on your specific plan’s formulary – a list of covered drugs – and where the medication falls within the plan’s tiered pricing system. Lower-tier drugs tend to be generic and cost less, while higher-tier specialty drugs, including many cancer treatments, may have significantly higher copayments or coinsurance. It’s important to review a plan’s formulary annually, as covered medications and costs can change.
Medicare Advantage (Part C) and Cancer Treatment
Medicare Advantage (Part C) plans are offered by private insurance companies approved by Medicare and include the same coverage as Original Medicare (Parts A and B), often with additional benefits. These plans must cover medically necessary cancer treatments, but the structure and costs may differ from Original Medicare.
Some Medicare Advantage plans include built-in prescription drug coverage, dental, or transportation benefits, which may help cancer patients manage their care more holistically. These plans use network restrictions, meaning your access to specialists or cancer centers may be limited. It’s essential to check whether your preferred oncologists and hospitals are in-network. Out-of-pocket costs also vary by plan and can include deductibles, copayments, and annual caps.
Medicare Supplement (Medigap) Plans and Cancer Costs
Medigap plans are designed to cover the “gaps” in Original Medicare, such as deductibles, coinsurance, and copayments. For cancer patients facing frequent treatments and follow-ups, a Medigap plan can help significantly reduce out-of-pocket expenses.
Different Medigap plans offer varying levels of coverage. For example, Plan G covers nearly all out-of-pocket costs except the Part B deductible, while Plan N may require small copayments for office visits and emergency room visits. The monthly premiums for Medigap vary by plan type, insurer, age, location, and health status.
Investing in a Medigap plan can offer peace of mind during cancer treatment, especially for those with complex or long-term care needs. For a deeper look into how supplemental policies fit into your broader financial plan, see our Definitive Guide to Life Insurance.
Average Cancer Treatment Costs with and without Medicare
Understanding the average cost of cancer treatment is essential for planning and financial preparedness, especially when evaluating Medicare’s impact on your expenses. This section breaks down how much cancer treatment costs with Medicare, without insurance, and with private insurance to give you a clear comparison.
How Much Does Cancer Treatment Cost Without Medicare?
Cancer treatment in the U.S. is notoriously expensive, especially without health insurance. The average cost of chemotherapy can range from $10,000 to over $100,000 per treatment course, depending on the drug regimen and duration. Radiation therapy may cost between $15,000 and $50,000 for a full cycle, while surgical procedures like tumor removal or biopsies often exceed $40,000 when hospitalization and follow-up care are included.
For hospitalized cancer patients, the average cost of inpatient care can reach upwards of $30,000 per hospital stay. Prescription medications, particularly targeted therapies and immunotherapies, can cost thousands of dollars monthly, with some specialty drugs priced at $10,000 or more per dose.
Out-of-Pocket Cancer Treatment Costs with Medicare
Medicare significantly reduces cancer-related costs, but it doesn’t eliminate them. Cancer patients with Original Medicare can still expect to pay:
- Part A deductible: $1,632 per benefit period (as of 2025) for inpatient care
- Part B deductible: $240 annually, plus 20% coinsurance for outpatient services like chemotherapy and doctor visits
- Part D or drug costs: Varies by plan, but high-tier medications can lead to substantial out-of-pocket expenses
For example, a patient undergoing outpatient chemotherapy might pay $2,000–$5,000 out-of-pocket over a treatment cycle, depending on whether they have a Medigap policy or Medicare Advantage plan. Without supplemental coverage, these costs can quickly add up, especially for long-term treatments.
Comparing Medicare vs. No Insurance vs. Private Insurance
Having Medicare can be a financial lifeline compared to being uninsured or relying solely on private insurance. Uninsured patients are often billed full price, leading to six-figure bills for chemotherapy or surgery. Meanwhile, private insurance can offer broad coverage, but high deductibles, premiums, and out-of-network charges can still result in substantial costs.
Medicare typically offers more predictable cost-sharing, especially when combined with Medigap or a well-structured Medicare Advantage plan. For example, a breast cancer patient might pay:
- $85,000+ uninsured (surgery, chemo, radiation, and follow-up)
- $15,000–$30,000 with private insurance, depending on the plan
- $5,000–$8,000 with Medicare + Medigap, or potentially less with Medicare Advantage
For individuals struggling to afford cancer treatment, options like selling a life insurance policy may provide much-needed financial relief. Learn more about how this works in our guide to selling your life insurance policy.
Ways to Reduce Cancer Treatment Costs with Medicare
Even with Medicare, cancer treatment can strain your finances, leaving many to wonder how much cancer treatment costs with Medicare. Fortunately, there are several strategies and programs that can help lower out-of-pocket costs and make treatment more manageable.
Selling Your Life Insurance Policy
One powerful but often overlooked option is selling your life insurance policy through a life settlement. This allows policyholders, typically aged 65 or older with a life expectancy of less than 15 years, to sell their term, whole, or universal life insurance policy to a third party for a cash payout.
The average payout from a life settlement can range from 20% to 60% of the policy’s death benefit, depending on the policy’s value, premiums, and the insured’s health. For example, someone with a $100,000 policy might receive $20,000 to $60,000 in a life settlement –funds that can be used immediately to offset cancer treatment expenses.
To estimate your policy’s worth, visit our life insurance policy value calculator.
Using Medicare Savings Programs and Financial Assistance
Medicare Savings Programs (MSPs) are state-administered initiatives that help low-income Medicare beneficiaries pay for premiums, deductibles, coinsurance, and copayments. There are four main MSPs:
- Qualified Medicare Beneficiary (QMB)
- Specified Low-Income Medicare Beneficiary (SLMB)
- Qualifying Individual (QI)
- Qualified Disabled and Working Individuals (QDWI)
Exploring Additional Coverage Options
If you’re eligible, Medicaid can act as a secondary payer to Medicare and help reduce cost-sharing responsibilities. That means Medicaid can cover the remaining portion of a medical bill that Medicare doesn’t completely cover. This can be especially helpful for dual-eligible beneficiaries who qualify for both programs due to income or disability status.
Many non-profit organizations (like the American Cancer Society or CancerCare) and state-funded cancer assistance programs also provide financial help with transportation, medications, lodging, and even direct medical costs.
Cost-Saving Tips for Medicare Beneficiaries
Reducing cancer treatment expenses often starts with choosing the right Medicare plan. Medicare Advantage plans and Medigap policies vary in cost and coverage, so comparing options during the annual enrollment period can lead to big savings.
Understanding your Part D drug formulary is also critical. Choosing a plan that places your cancer medications on lower tiers can result in lower copayments. Also, using preferred pharmacies and asking about generic alternatives can further reduce drug costs.
Lastly, take full advantage of Medicare-covered preventive screenings, including mammograms, colonoscopies, and prostate exams. Catching cancer early through routine screenings can lower both treatment complexity and overall costs.
Conclusion
Cancer treatment can bring not only emotional stress but also significant financial burdens, even for those with Medicare coverage. If you’re wondering how much cancer treatment costs with Medicare, the answer can vary widely depending on your plan, treatment type, and out-of-pocket responsibilities. Fortunately, there are ways to ease the cost, including Medicare Savings Programs, supplemental plans, and financial assistance resources. One powerful option is selling your life insurance policy through a life settlement, which can unlock a windfall of immediate funds to support treatment, living expenses, or other critical needs.
At Coventry, we’ve helped thousands of individuals turn their life insurance into a valuable financial asset. With highly rated customer reviews and a proven track record, Coventry is a trusted leader in life settlements. If you’re ready to explore your options, get started with Coventry today.
