OBJECTIVES: Payers, including employers, are struggling to balance cost of novel therapies with long-term benefits of the treatments. The goal of this analysis is to examine the potential benefit of treating patients with Hepatitis C virus (HCV) by evaluating indirect costs during the first year following diagnosis. METHODS: Employed patients with HCV were identified using the Truven Health Analytics Health and Productivity Management Database from 2010-2012. Presence and number of days associated with absenteeism (ABS), short-term disability (STD) and long-term disability (LTD) were evaluated among patients with HCV and at least 12 months of continuous enrollment for the year following diagnosis.  Costs associated with reduced productivity were monetized using an average hourly wage (ABS) and a proportion of that wage (70% for STD/LTD) and are reported in US$. RESULTS: A total of 3,250 patients met the study inclusion criteria (mean age: 51 years; 67% male). Availability of productivity data varied - 588 employees had ABS data, 2,175 had STD data and 1,985 had LTD data during year following diagnosis. Of these 87% had at least one day of ABS, 21% at least one STD claim and 2% at least one LTD claim. Total ABS costs in the year following the HCV diagnosis were $17,439. Among those with claims, STD costs during year following diagnosis were $42,149 and LTD costs were $50,422. A smaller subset of patients had productivity data available for the 2 year period following diagnosis (n=215 [ABS], n=748 [STD], n=670 [LTD]). Costs during year 2 were similar to first year cost- approximately $21,400 for ABS, $42,700 for STD and $55,500 for LTD. CONCLUSIONS: Novel treatments can be costly but potential reductions in productivity losses may offset these costs. Payers should consider broad and long-term impact of these medications when making reimbursement decisions.