Diabetes Cost U.S. $218B In 2007, Report Finds

Main Category: Diabetes
Article Date: 19 Nov 2008 - 10:00 PDT

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Diabetes in 2007 cost the U.S. $218 billion in direct medical care and indirect costs, such as lost productivity, according to a report released on Tuesday, the AP/Raleigh News & Observer reports. For the report -- funded by Novo Nordisk, which manufactures insulin and diabetes medications -- researchers at the Lewin Group analyzed a number of sources, such as databases on the treatment of diabetes patients enrolled in private health plans, Medicare and Medicaid; federal public health surveys; and other sources. The $218 billion accounts for about 10% of all U.S. health care spending by the government and public, which totaled about $2.1 trillion in 2006, according to CMS.

According to the report, type 1 and type 2 diabetes patients in 2007 cost the U.S. $174.4 billion. Type 1 diabetes patients in 2007 cost the U.S. $10.5 billion in direct medical care and $4.4 billion in indirect costs, and type 2 diabetes patients cost $105.7 billion in direct medical care and $53.8 billion in indirect costs, the report found. In addition, individuals with undiagnosed diabetes in 2007 cost the U.S. $18 billion, women who developed diabetes during pregnancy cost $636 million and pre-diabetes patients cost $25 billion, according to the report. Nearly 6% of the 17.5 million U.S. residents diagnosed with diabetes have type 1.

Novo Nordisk plans to present the report on Tuesday at a health care conference for corporate executives and publish the report in a professional journal.

Dana Haza -- senior director of the National Changing Diabetes Program, an effort by Novo Nordisk to improve diabetes treatment and prevention -- said, "Diabetes has not seen a decline or even a plateauing, and the death rate from diabetes continues to rise," adding, "The numbers just keep going higher and higher, and what we want to say is, 'It's time for government and businesses to focus on it.'"

Andrew Webber, president and CEO of the National Business Coalition on Health, said that the report "gives a very persuasive argument to employers to invest in a culture of health in their work force" (Johnson, AP/Raleigh News & Observer, 11/18).

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© 2008 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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