James Van Der Beek’s Death Spotlights Financial Toll of Health Issues

The recent death of actor James Van Der Beek from cancer — and the subsequent crowdfunding to help his family to pay some of the expenses that drained their finances —spotlights the toll of soaring health care costs and medical events, as well as employers’ role in helping employees control medical costs.

The Dawson’s Creek star died from colon cancer on Feb. 11, at age 48, but the news of a GoFundMe campaign for his family has made just as many headlines.

“Throughout his illness, the family faced not only emotional challenges but also significant financial strain as they did everything possible to support James and provide for his care,” the GoFundMe page reads. “The costs of James’s medical care and the extended fight against cancer have left the family out of funds.”

While it’s not clear if Van Der Beek had medical insurance, experts said that this is not an isolated example — even for those with health plan coverage.

“This isn’t an unusual situation — it’s just happening to someone in the public eye,” said Harrison Newman, a New York City-based vice president and employee benefits consultant at Corporate Synergies, a benefits brokerage and consultancy firm. “Most benefits programs handle everyday health care needs well, but when something major happens, that’s where families see the cracks. Even with a solid medical plan, people can get buried by the financial ripple effects: missed work, travel to specialists, support needs, and everything else that life throws at you during a serious diagnosis.”

Health Care Affordability Struggles

Millions of Americans struggle to navigate coverage gaps, deductibles, and skyrocketing health care costs — with more than 31 million people borrowing an estimated $74 billion last year just to pay medical bills, according to Gallup figures. And paying for health care is currently Americans’ top financial worry, with the Kaiser Family Foundation finding that two-thirds of Americans say they are very or somewhat worried about affording health care, outranking concerns about paying for groceries, utilities or housing costs.

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Van Der Beek’s story is a prime example of health care affordability issues and shows “how flawed the system is,” Newman said.

“If someone with his level of visibility and resources still ends up relying on GoFundMe, what does that mean for the average family?” he said. “Most people are walking around with what looks like ‘basic’ health insurance, but it’s not built for major medical events. Deductibles, coinsurance, specialty drugs, missed work — it all piles up much faster than people expect. It’s a reminder that having health insurance doesn’t necessarily mean being financially protected.”

Matthew Kim, CEO of health benefits technology company SureCo in Santa Ana, Calif., agreed.

Van Der Beek’s story “demonstrates that in America, you can do everything right — build a career, get insured, have resources — and still be one diagnosis away from financial catastrophe,” he said. “Cancer care, in this instance, often combines high premiums, large deductibles, out-of-pocket maximums, and non-medical costs, like travel or lost income.”

But cancer is just one example, Kim said. “Heart attacks, complex surgeries, chronic conditions, and long hospital stays can all trigger similarly large and sudden expenses that most households are not positioned to absorb,” he said.

Highlighting Importance of Supplemental Coverage

For employers, the example of Van Der Beek shows their importance in helping employees control health care costs, as well as preparing them for a possible medical emergency.

“Employers are being asked to increasingly pick up the slack, and the tab, for a fundamentally broken health care system. They’re spending what amounts to the cost of a new sedan on each of their employees’ health insurance every year, but it’s oftentimes still not enough to protect their workforce either financially or physically,” Kim explained.

“This should push employers to look beyond just the medical plan and focus on the whole safety net,” Newman said.

Supplemental benefits — such as critical illness, hospital indemnity plan, or cancer benefits — are a big area of help, experts said. Critical illness and hospital indemnity plans, for example, provide immediate cash when something big hits. That money can go toward anything — bills, travel, child care, extra support, and other things health insurance doesn’t touch, Newman said.

Specialty Credential: Total Rewards

Employers can also look at disability insurance benefits. “Many employees — especially high earners — hit income caps on [long-term disability insurance] and don’t even realize it,” Newman explained. “A ‘60% income replacement’ sounds good until you realize the plan only covers salary up to a capped monthly maximum. For higher-income employees, that could mean they’re actually getting 20%–30% of their real income if they’re out of work.”

Employers should also look at tax choice, he said: If disability premiums are paid post‑tax, the benefit is tax‑free when employees actually need it. “That can mean a huge difference in take‑home dollars during a long-term disability situation,” he said. “Ensuring the coverage level matches the actual financial needs of the workforce is key — not just relying on a default plan that might leave people exposed.”

Health savings accounts are another underused way to help employees save for medical expenses. “If an employer offers an HSA-eligible plan, encouraging employees to contribute — and ideally providing an employer contribution — can make a huge difference,” Newman said.

HSAs roll over, grow year after year, and can turn into a long-term financial cushion specifically for medical events.

“These pieces work together,” Newman said. “When they’re aligned, employees have a real safety net. When they’re not, even a well-known public figure can end up on GoFundMe.”

Communicating Coverage

Health care models like an individual coverage health reimbursement arrangement — an employer-funded, tax-advantaged health benefit that allows businesses of all sizes to reimburse employees for individual health insurance premiums and qualified medical expenses — are another option for employers to give employees more control over their health care needs, Kim said. “For the employee, it provides the freedom to choose a portable health insurance plan from the individual market that best suits their family’s unique needs and risk factors.”

“While supplemental coverage can still play a role for specific needs like income replacement, the ultimate goal should be to ensure the primary health plan is robust enough to provide true financial protection,” Kim said.

Regardless of what coverage options — or supplemental benefits — employers provide, employers should make sure they communicate to employees about coverage, any potential coverage gaps, how their plans or benefits work, and why they’re important.

“[Benefits] only work when employees understand how and when those products apply,” Kim said.