OBJECTIVES: To estimate the annual financial burden of cancer care in the United States and to study the effects of cancer on total health care of the country. METHODS: Direct medical cancer care costs of for the years 2008-2011 were estimated using the household component of the Medical Expenditure Panel Survey (MEPS), a nationally representative survey that includes self-reported healthcare utilization and expenditures for the US civilian non-institutionalized population. The likelihood of having a cancer diagnosis by age, race and insurance status and other variables were also assessed. RESULTS: Aggregate cost of cancer in the US increased from $183 billion in 2008 to $236 billion in 2011. While total out-of-pocket (OOP) costs per cancer case decreased from $1,419.43 in 2008 to $1,254.77 in 2011, total cost per-case increased from $10,461.66 to $12,583.69 over 2008 to 2011. The OOP and total medical care expenditures per case in 2008 were $1,560.54 and $11501.69 respectively in 2011 prices using Urban Medical Consumer Price Index. OOP per case declined at an annual rate of 7.3% while the total direct cost increased at an annual rate of about 3%. Whites, females and 45-64 year olds were more likely to have a cancer diagnosis and most cancer care costs were covered by private insurers. Geographical location was not associated with cancer diagnosis although the southern region has the highest concentration. CONCLUSIONS: Our study confirms that cancer is a significant cost driver of the US health care system. Due to expected increase in the number of incident cases and survival rate, total cost of cancer is likely to increase rapidly over the next decade.  With the implementation of the Affordable Care Act, burden of cancer care costs on taxpayers will increase due to higher insurance coverage and lower OOP cost.