Economic Costs of Diabetes in the U.S. in 2012
March - 6 - 2013
On March 6 the Association announced the results of its study "Economic Costs of Diabetes in the U.S. in 2012”. The study, which is an update of the Association’s 2007 Cost Study, analyzes the direct and indirect cost burden of diagnosed diabetes and is published as a Scientific Statement in the April 2013 issue of Diabetes Care. Key findings of the study include:
- Total estimated costs of diagnosed diabetes have increased 41%, to $245 billion in 2012 from $174 billion in 2007.
- Direct medical costs are $176 billion, which includes costs for hospital and emergency care, office visits, and medications.
- Indirect medical costs total $69 billion, which includes costs for absenteeism, reduced productivity, unemployment caused by diabetes-related disability, and lost productivity due to early mortality.
- Medical expenditures for people with diabetes are 2.3 times higher than for those without diabetes.
- More than 1 in 10 health care dollars in the U.S. are spent directly on diabetes and its complications, and more than 1 in 5 health care dollars in the U.S. goes to the care of people with diagnosed diabetes.
- The absolute cost of hospital inpatient care for people with diabetes has risen from $58 billion in 2007 to $76 billion in 2012. However, hospital inpatient care costs have fallen from 50 percent to 43 percent of total direct medical costs.
- Overall pharmacy costs for anti-diabetic agents and diabetes supplies remain unchanged at only 12 percent of medical expenditures, despite the introduction of six new branded medications for the treatment of diabetes since 2007.
Diabetes Costs in Specific Populations
Most of the cost for diabetes care in the U.S., 62.4%, is provided by government insurance (including Medicare, Medicaid, and the military). The rest is paid for by private insurance (34.4%) or by the uninsured (3.2%).
- People with diabetes who do not have health insurance have 79% fewer physician office visits and are prescribed 68% fewer medications than people with insurance coverage—but they also have 55% more emergency department visits than people who have insurance.
- Total per-capita health care expenditures are lower among Hispanics ($5,930) and higher among non-Hispanic blacks ($9,540) than among non-Hispanic whites ($8,101). Non-Hispanic blacks also have 75% more emergency department visits than the population with diabetes as a whole.Total per-capita health expenditures are higher among women than men ($8,331 vs. $7,458). Total per-capita health care expenditures are lower among Hispanics ($5,930) and higher among non-Hispanic blacks ($9,540) than among non-Hispanic whites ($8,101).
- Compared to non-Hispanic whites, per capita hospital inpatient costs are 41.3% higher among non-Hispanic blacks and 25.8% lower among Hispanics.
- Among states, California has the largest population with diabetes and thus the highest costs, at $27.6 billion. Although Florida’s total population is 4th among states behind California, Texas, and New York, Florida is 2nd in costs at $18.9 billion.