Silver Book

Diabetes  /  Economic Burden

Despite recent advances, diabetes continues to be a major health threat for at least 29 million Americans who have it and the 86 million Americans with prediabetes. The biggest concerns for individuals with the disease are its many complications and co-morbidities; which can cause vision loss, heart disease, stroke, and other debilitating medical conditions. With the aging of the population and the rise in risk factors like obesity, these problems are going to skyrocket, making medical innovation more critical than ever.

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    • Annual Direct and Indirect Costs of Diabetic Retinopathy
       
    • In 2008, diabetes-related hospital costs totaled $83 billion.  
    • In 2034, there will be 14.1 million Americans who are diabetic and eligible for Medicare.  
    • Diabetes consumes 62.4 % of government health insurance (Medicare, Medicaid, and the military)  
    • 1 in every 5 health care dollars is spent on diabetes and its complications.  
    • Medical costs are about $13,700 per year for those diagnosed with diabetes, 2.3 times higher than those without diabetes.  
    • In 2012, the total cost of diabetes was $245 billion–$176 billion in medical costs and $69 billion in lost productivity.  
    • During 1997-2006, diabetes was the single biggest contributor to inflation-adjusted health care spending growth among Medicare beneficiaries.  
    • Approximately $1 in every $5 spent on health care in the United States goes to caring for someone with diagnosed diabetes, and 25 percent of Medicare’s annual budget is used…  
    • In 2010, diabetes-related health spending worldwide totaled $376 billion, corresponding to 12 percent of all health spending and $1,330 per person spent on diabetes.  
    • A person with diabetes can expect to lose more than $160,000 over his or her working life, compared to a peer without the disease.  
    • By age 30, a person with diabetes can expect a ten-percentage-point reduction in the likelihood of being employed and annual earnings penalties of up to $6,000 when employed.  
    • Seniors with diagnosed diabetes in a large representative sample of United Healthcare’s Medicare Advantage members had average costs in 2009 that were 33 percent higher than those for the remainder…  
    • The average yearly total costs for a person with diabetes who developed complications were $20,700- almost three times the average cost of $7,800 for diabetes patients without complications.  
    • The average total annual cost for an adult plan member with employer coverage and diagnosed diabetes who interacted with the health care system in 2009 was approximately $11,700, compared to…  
    • Diabetes is costly, accounting for one-tenth of US health care expenditures in 2007.  
    • Health care costs adjusted for age and sex are 2.3 times greater among people with diabetes than among those without the disease.  
    • It is estimated that one-third of Medicare dollars are spent on people with diabetes.  
    • The estimated total financial cost of diabetes in the United States in 2007- taking into account medical care, disability, and premature death- was $174 billion.  
    • Patients with diabetes that are hospitalized for a cardiovascular event incur higher costs for cardiovascular care than their non-diabetic counterparts over 3 years. Compared to patients without diabetes, patients with…  
    • Medicare beneficiaries with diabetic macular edema (DME) had 31% higher 1-year costs and 29% higher 3-year costs compared to diabetic Medicare beneficiaries without DME.  
    • Three-year (1993-1995) estimates of medical care charges for patients with diabetes ranged from $10,439 for those without comorbid conditions to $44,417 for those with heart disease and hypertension.  
    • In 2007, type 1 diabetes cost approximately $14.9 billion (direct medical costs, $10.5 billion; indirect $4.4 billion), while type 2 diabetes cost $159.5 billion (direct medical costs, $105.7 billion; indirect…  
    • Of Medicare fee-for-service patients with chronic conditions, more are treated for diabetes than any other condition (24.3%).  
    • Diabetes drug expenditures rose from $6.7 billion in 2001 to $12.5 billion in 2007.  
    • The average cost per diabetes prescription increased from $56 in 2001 to $76 in 2007.  
    • After adjusting for age and sex differences, the average medical expenditures among people with diabetes were 2.3 times higher than expenditures for those without diabetes.  
    • The estimated total costs of diabetes (direct and indirect) in 2007 were $174 billion.  
    • Percent of category expenditures associated with diabetes  
    • The value of lost productivity from premature mortality due to diabetes is $26.9 billion.  
    • The number of workdays absent because of diabetes in 2007 is approximately 15 million.  
    • Approximately 40.7 million of the 186 million hospital inpatient days in 2007 were incurred by people with diabetes, and 24.3 million more are attributed to diabetes.  
    • The national burden of diabetes is likely to exceed $174 billion because it omits the social cost of intangibles such as pain and suffering, care provided by unpaid caregivers, excess…  
    • Indirect costs of diabetes include increased absenteeism ($2.6 billion) and reduced productivity while at work ($20.0 billion) for the employed population, reduced productivity for those not in the labor force…  
    • Approximately 1 in 5 health care dollars in the U.S. is spent caring for someone with diagnosed diabetes, while 1 in 10 health care dollars is attributed to diabetes.  
    • Americans with diagnosed diabetes incur average expenditures of $11,744 per year. These expenditures are approximately 2.3 times higher than what they would be in the absence of diabetes.  
    • The largest components of medical expenditures attributes to diabetes are hospital inpatient care (50% of total cost), diabetes medication and supplies (12%), prescriptions to treat diabetes complications (11%), and physician…  
    • Medical costs attributed to diabetes include $27 billion in direct care, $58 billion in treating diabetes-related chronic complications, and $31 billion in excess general medical costs.  
    • The total estimated cost of diabetes in 2007 is $174 billion–$116 billion in excess medical expenditures, $58 billion in reduced productivity.  
    • 17.5 million Americans had diabetes in 2007, compared to 12.1 million in 2002.  
    • Decreased productivity due to diabetes costs an individual between $3,700 and $8,700 in yearly earnings.  
    • 1 out of every 10 healthcare dollars spent in the U.S. is spent on diabetes mellitus.  
    • In 2002, 51.8% of direct medical expenditures from diabetes were incurred by people over 65 years old.  
    • Diabetes caused 176,000 cases of permanent disability in 2002–costing $7.5 billion.  
    • The per capita annual cost of health care for a diabetic increased from $10,071 in 1997 to $13,243 in 2002–an increase of more than 30%.  
    • 1 in every 10 health care dollars is spent on diabetes and its complications.  
    • Total cost of diabetes, 2002  
    • Mortality costs attributable to diabetes, 2002  
    • Morbidity costs attributable to diabetes, 2002  
    • Total health care expenditures by diabetes status, 2002 (in millions of dollars and % of U.S. total)  
    • Health care expenditures attributable to diabetes, by medical condition and type of service, 2002 (in millions of dollars)  
    • Health care expenditures attributable to diabetes in the U.S., by age and type of service, 2002 (in millions of dollars)  
    • Share of total U.S. health care use attributable to diabetes by medical condition  
    • Proportion of U.S. health care use attributable to diabetes for various conditions  
    • In 2002, the major expenditure groups for diabetes by service setting were inpatient days (43.9%), nursing home care (15.1%) and office visits (10.9%).  
    • In 2002, the cost of medications to treat diabetes was $7.3 billion.  
    • Diabetes consumes 25% of Medicare’s annual budget.  
    • In 2002, people with diabetes had medical expenditures that were 2.4 times higher than those without the disease.