OBJECTIVES: To examine the economic burden and clinical characteristics of lung cancer in the U.S. veteran population. METHODS:   A retrospective database analysis was performed using the Veterans Health Administration (VHA) Medical SAS Datasets from October 1, 2005 to May 31, 2012. Patients with lung cancer were identified using International Classification of Disease 9th Revision Clinical Modification (ICD-9-CM) diagnosis code 162.xx.  Descriptive statistics were calculated as means ± standard deviation (SD) and percentages to measure comorbidities, laboratory tests, costs and utilization distribution in the sample.  Comorbidities and laboratory tests were measured for the 1-year baseline period before the disease identification date. Health care costs and utilization were measured for the 1-year follow-up period after the identification date. RESULTS: The total number of lung cancer patients identified in the study period was 73,150. The most common comorbidities of these patients were hypertension (n=21,377, 29.22%), chronic airway obstruction (n=14,305, 19.56%), abnormal findings on radiological and other examination of lung field (n=12,437, 17.00%), and diabetes (n=11,569, 15.82%). Omeprazole and simvastatin were the top two most commonly prescribed treatments for lung cancer patients. Both medications were prescribed for more than 20% of all lung cancer patients. A total of 49,706 (67.95%) of the lung cancer patients had total white blood cell (WBC) count test results, averaging a result of 11.68. The percentage of patients with follow-up inpatient visits was 46.47%, which translated into $21,420 of inpatient costs per patient. 99.11% of patients had follow-up outpatient visits, which translated into $12,986 total outpatient costs per patient ($12,110 for office visit, $411 for emergency room visit costs). CONCLUSIONS: This study found that omeprazole and simvastatin were the most frequently prescribed drugs after a lung cancer diagnosis. However, more research is required to better understand adverse events and side effects.