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How Much Does Diabetes Cost The United States?

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COSTS OF DIABETES IN COSTS OF DIABETES IN Jonathan Betz Brown, MPP, PhD Chair, International Diabetes Federation Task Force on Diabetes Health Economics Senior Investigator, Kaiser Permanente Center for Health Research, Portland, Oregon, USA [email protected] Complications of Diabetes � Coronary Artery Disease � Stroke �Heart Failure � Peripheral Neuropathy � Peripheral Artery Diseaseà Amputation � Blindness �Renal Failure � Acute Hyperglycemic Symptoms � Tuberculosis, HIV MILLIONS Global Deaths by CauseGlobal Deaths by Cause 1.21.2Malaria 2.62.6HIV/AIDS 13.413.4CVD (w/ DM) 3.83.8Diabetes DeathsDeaths Sources: International Diabetes Federation. Diabetes Atlas, Third Ed., 2006. World Health Organization. Global Burden of Disease Project. 2003 THOUSANDS, AGED 20-79 2007 Deaths from Diabetes2007 Deaths from Diabetes 337 297 721 242 189 1017 978 0 200 400 600 800 1000 1200 AFRAFRAFRAFR EMMEEMMEEMMEEMME EUREUREUREUR NANANANA SACASACASACASACA SEASEASEASEA WPWPWPWP Source: International Diabetes Federation. Diabetes Atlas, Third Ed., 2006. Health Care Expenditures for Health Care Expenditures for Diabetes, 2007Diabetes, 2007 USD 350 billionUSD 350 billion2002 2002 Intern’lIntern’l $$ USD 300 billionUSD 300 billion2002 2002 US DollarsUS Dollars Source: International Diabetes Federation. Diabetes Atlas, Third Ed., 2006 ESTIMATED DIABETES-CAUSED Spending Per Capita w/ DM, 2007 10641064318318South AfricaSouth Africa 75753333NigeriaNigeria 56562424TanzaniaTanzania 1251253434KenyaKenya 1221225656CameroonCameroon 303066BurundiBurundi 6231623162316231USAUSA IDIDUSDUSD Source: IDF Diabetes Atlas, Third Edition, 2007 664966496649 BILLIONS OF USD 2002, R=2BILLIONS OF USD 2002, R=2 2007 Health Expenditures for Diabetes2007 Continue reading >>

Diabetes Care Could Top $336 Billion By 2034

Diabetes Care Could Top $336 Billion By 2034

The number of Americans with diabetes is expected to continue to rise, which only adds to the already staggering costs of this disease. One of the biggest dangers faced by Americans comes not from outside the country’s borders, but from within. The way Americans eat and how they move — or don’t move — is driving the country’s high rates of obesity, heart disease, stroke, and type 2 diabetes. And it’s putting a dent in our wallets. Take diabetes, for example. A new government report found that almost 10 percent of U.S. adults have diabetes, with many more in the early stages of the disease. The annual price tag for this chronic illness runs into the billions of dollars for medical care and lost productivity. As bad as that seems, other research shows that left unchecked, one-third of American adults could have diabetes by 2050, with an equally staggering blow to the U.S. economy. All numbers up and to the right A report released last month by the Centers for Disease Control and Prevention (CDC) found that 30.2 million Americans 18 years or older — 9.4 percent of the population — had diabetes in 2015. Nearly a quarter of the people were unaware that they had diabetes, or didn’t report it during the screening. The rate of diagnosed diabetes increased with age, with over 1 in 4 people 65 years or older having diabetes. On top of that, 84.1 million adults — or 34 percent — had prediabetes, an elevated fasting blood sugar level that is not high enough to be classified as type 2 diabetes. Without lifestyle changes, people with prediabetes will likely develop the condition. Only 11.6 percent of these people were aware that they had prediabetes. Diabetes increases the risk of serious health complications, including early death, heart disease and stroke, kid Continue reading >>

Cost Of Diabetes

Cost Of Diabetes

Tweet The cost of diabetes to the NHS is over £1.5m an hour or 10% of the NHS budget for England and Wales. This equates to over £25,000 being spent on diabetes every minute. In total, an estimated £14 billion pounds is spent a year on treating diabetes and its complications, with the cost of treating complications representing the much higher cost. The prevalence of diabetes is estimated to rise to 4 million by 2025. Costs of diabetes treatment in the UK The following table represents the relative cost of diabetes treatment in the UK in 2012. Cost of diabetes treatment in the UK in 2012 Area of expenditure Type 1 diabetes Type 2 diabetes Total cost Percentage of costs Source: Kanavos, van den Aardweg and Schurer: Diabetes expenditure, burden of disease and management in 5 EU countries, LSE (Jan 2012) Diabetes drugs £0.344 billion £0.712 billion £1.056 billion 7.8% Non-diabetes drugs £0.281 billion £1.810 billion £2.091 billion 15.2% Inpatient £1.007 billion £8.038 billion £9.045 billion 65.8% Outpatient (excluding drugs) £0.170 billion £1.158 billion £1,328 billion 9.7% Other (including social service) - - £0.230 billion 1.7% Total £1.802 billion £11.718 billion £13.750 billion 100% The cost of diabetes complications A 2012 report from the London School of Economics, estimates that the cost of prescribing medication for complications of diabetes is around 3 to 4 times the cost of prescribing diabetes medication. Medication for cardiovascular disease constitutes the largest proportion of prescriptions costs for people with diabetes. Annual inpatient care, to treat short and long term complications of diabetes, is estimated at between £1,800 and £2,500 per patient. This compares with annual outpatient costs, which includes the cost of medications and Continue reading >>

Diabetes Care Tops U.s. Health Care Spending

Diabetes Care Tops U.s. Health Care Spending

HealthDay Reporter leads a list of just 20 diseases and conditions that account for more than half of all spending on health care in the United States, according to a new comprehensive financial analysis. U.S. spending on diabetes diagnosis and treatment totaled $101 billion in 2013, and has grown 36 times faster than spending on heart disease, the country's No. 1 cause of death, researchers reported. "After adjusting for inflation, we see that every year the U.S. is spending 6 percent more than we spent the year before on diabetes," said lead researcher Joseph Dieleman, assistant professor at the University of Washington Institute for Health Metrics and Evaluation. "That's really a remarkable growth rate, notably faster than the economy is growing or health care spending as a whole," he said. The annual rate of growth in health care spending between 1996 and 2013 has been 3.5 percent on average, Dieleman noted. "Spending on diabetes grew twice as fast as all conditions combined" during that 18-year period, he said. The study findings were published in the Dec. 27 issue of the Journal of the American Medical Association. Americans spent $2.1 trillion in 2013 on diagnosis and treatment of health problems, which amounts to more than 17 percent of the total U.S. economy, the researchers concluded from their analysis of federal data. "That is a staggering, almost unimaginable amount," Dr. Ezekiel Emanuel wrote in an editorial accompanying the new study. Emanuel is chair of medical ethics and health policy at the University of Pennsylvania. "Indeed, this level of spending makes the U.S. health care system the fifth largest economy in the world, behind only the U.S., Chinese, Japanese and German national economies," Emanuel pointed out. Dieleman and his colleagues broke down Continue reading >>

The Cost Of Medicine: Why Do Americans Pay The Most?

The Cost Of Medicine: Why Do Americans Pay The Most?

Recently triggering another storm of fury over pharmaceutical drug costs across the United States, the price of a drug from GlaxoSmithKline that treats parasitic infection was jacked up to $750 per pill (originally priced at $13.50) in the US while that same drug is sold for .66 cents per pill in Britain. The United States is one of the only majorly developed countries that doesn’t provide free healthcare for its citizens. Additionally, the USA is paying at least three times the price for its pharmaceutical drugs than countries such as Britain, and many believe that this is exactly what subsidizes other countrys’ healthcare systems. Research findings pinpoint a huge difference between the price of treating a range of diseases in the USA compared to other countries. Focusing on the top 20 highest selling drugs, which account for 15 percent of “global pharmaceutical spending in 2014” reports the Huffington Post. The pharmaceutical manufacturers of these top 20 drugs include Pfizer, Merck, Roch, and AstraZeneca. But it gets worse: compared to Brazil, prices in the US were six times higher and sixteen times higher in India, which is identified as having the lowest-prices of pharmaceutical drugs. Is the trade-off that, using Canada as an explain, despite having more affordable healthcare systems for its citizens, it compensates by for that expense with incredibly tax rates? And of course, a common criticism of those against universal healthcare in the USA is that standard of care drops tremendously, it takes months to scheduled an appointment, and the lines in urgent care or the emergency room are endless. Part of the problem is that the United States “leaves pricing to marketing competition” whereas other countries manage and control the cost of their medicine t Continue reading >>

Estimating The Cost Of Type 1 Diabetes In The U.s.: A Propensity Score Matching Method

Estimating The Cost Of Type 1 Diabetes In The U.s.: A Propensity Score Matching Method

Introduction Type 1 diabetes (T1D) is an autoimmune disease, often diagnosed early in life, characterized by the destruction of the insulin-secreting β cells in the pancreas. As a consequence, patients become insulin-dependent and must follow a rigid, daily regimen of exogenous insulin replacement. In contrast, type 2 diabetes (T2D) is typically a disease of adulthood (although more cases are now being seen earlier in life), where a relative insulin deficiency arises due to insulin resistance and abnormal pancreatic β cell function [1]. The American Diabetes Association (ADA) estimates that there are 17.9 million individuals diagnosed with diabetes in the U.S. [2], with 5 to 10 percent representing those with T1D [3]. Epidemiologic studies suggest that the incidence rate of T1D has been growing worldwide, especially amongst young children [4]. With the increasing focus on the T2D epidemic, the impact of T1D in this country is often overlooked, particularly from an economic perspective. Many cost-of-illness (COI) studies have been performed on diabetes, but most combine the costs for T1D and T2D over just one year. The Agency for Health Research Quality (AHRQ), using the Medical Expenditures Panel Survey (MEPS), a nationally representative data set [5], reports that $34 billion in health expenditures were related to diabetes in 2005 [6]. A frequently quoted study by the ADA improves upon this number by using the attributable risk methodology to calculate the portion of expenditures on related comorbidities that is due to diabetes [7]. The researchers also include other non-medical costs (i.e. lost work days, bed days, and increased mortality), which are important factors in the cost of diabetes. The study finds that diabetes is responsible for $92 billion in medical ex Continue reading >>

Diabetics Can Spend $1,000 A Month Taking Care Of Themselves — And It's Not Just Because Of Insulin

Diabetics Can Spend $1,000 A Month Taking Care Of Themselves — And It's Not Just Because Of Insulin

A paramedic checking the blood sugar levels of a diabetes patient. Beawiharta Beawiharta/Reuters Diabetes, in particular type 1 diabetes, can be an expensive chronic disease to manage. That's being felt as the cost of insulin increases, while at the same time high health insurance deductibles leave families on the hook to cover more of the cost than ever before. It means, in some cases, all the expenses can climb past $1,000 a month. There are two types of diabetes of which nearly 29.1 million Americans have one or the other. Type 1 is an autoimmune disease, in which the body mistakenly kills so-called beta cells that are supposed to make the body's insulin, a hormone that helps people absorb and process the sugar in food. This kind of diabetes can affect any age group, though it's most often diagnosed in children, teens, and young adults. The roughly 1.25 million people in the US who have Type 1 diabetes need to inject insulin to live. Type 2 diabetes, the more common form, is something that develops either based on genetic or lifestyle choices, and doesn't always require that you need to take insulin. But insulin isn't the only thing type 1 diabetics have to keep track of. There are a lot of supplies that come with the diagnosis: there are test strips, which help monitor blood sugar levels there are lancets that are used to draw the blood, not to mention alcohol swabs to clean the area where injections happen. There are also the needles/syringes you need to inject the insulin. There's also a device called glucagon, an emergency drug for diabetics that is kind of like the EpiPen. If a diabetic' blood sugar gets too low and he or she passes out, someone can administer the glucagon to get their blood sugar levels back up to non-emergency levels. Some also choose to use a Continue reading >>

Calculate What Diabetes Costs Your Business

Calculate What Diabetes Costs Your Business

According to the American Diabetes Association's Economic Costs of Diabetes in the U.S. in 2012, the average medical expenditure for people with diagnosed diabetes is about $13,700 per year, of which about $7,900 is due to diabetes. The medical expenditures of people with diabetes are approximately 2.3 times higher than expected costs if they did not have diabetes. The total estimated cost of diagnosed diabetes in 2012 was $245 billion. The breakdown of this cost includes: $176 billion in direct medical costs, which included hospital inpatient care (43% of the total medical cost). Prescription medications to treat the complications of diabetes (18%). Antidiabetic agents and diabetes supplies (12%). Physician office visits (9%). Nursing/residential facility stays (8%). Indirect costs include: Increased absenteeism ($5 billion). Reduced productivity while at work ($20.8 billion) for the employed population. Reduced productivity for those not employed ($2.7 billion). Inability to work as a result of disease related disability ($21.6 billion). Lost productive capacity due to early mortality ($18.5 billion). Individual lifetime medical costs A study published in the American Journal of Preventative Medicine entitled, Lifetime Direct Medical Costs of Treating Type 2 Diabetes and Diabetic Complications, showed the lifetime direct medical costs of treating type 2 diabetes and its complications in the working population (aged 25-64) ranged from $124,700 for men in the youngest group (aged 25-44 years) to $84,000 in men aged 55-64. The lifetime costs in women costs ranged from $130,800 in age group 25-44 to $85,200 in the age group 55-64. Fifty-three percent of the age–gender weighted average of the lifetime medical was due to treating diabetic complications. The authors conclu Continue reading >>

Diabetes In The United States

Diabetes In The United States

The total annual economic cost of diabetes in 1997 was estimated to be $98 billion. That includes $44 billion in direct medical and treatment costs and $54 billion for indirect costs attributed to disability and mortality. In 1997, total health expenditures incurred by people with diabetes amounted to $77.7 billion including health care costs not resulting from diabetes. The per capita costs of health care for people with diabetes amounted to $10,071, while health care costs for people without diabetes amounted to $2,669 in 1997. Additional information: Direct Costs of Diabetes Estimated at $44 billion in 1997. Represents 5.8 percent of total personal health-care expenditures in the U.S.; however, diagnosed diabetes patients account for only 3.8 percent of the total U.S. civilian population. Approximately $27.5 billion was spent for inpatient hospital care and $5.5 billion for nursing home care. Diabetes-related hospitalizations totaled 13.9 million days in 1997. Rates of outpatient care were highest for physician office visits, which included 30.3 million visits to treat persons with diabetes. The mean length of stay for hospitalization was 5.4 days. Cardiovascular disease is the most costly complication of type 2 diabetes, accounting for more than $7 billion of the $44.1 billion annual direct medical costs for diabetes in 1997. Sustained reduction in A1C (blood glucose) levels among adults with diabetes was associated with significant cost savings within 1 to 2 years. Back to top Estimated to be $54 billion in 1997. Disability costs amounted to $37.1 billion and mortality amounted to approximately $17 billion. In 1997, diabetes accounted for a loss of nearly 88 million disability days. Of those, over 14 million work-loss days from jobs outside of the home were attribu Continue reading >>

Comparison Of The Nature And Cost Of Diabetes Treatment At Two Clinics In Japan And The United States

Comparison Of The Nature And Cost Of Diabetes Treatment At Two Clinics In Japan And The United States

Abstract In order to compare the cost-effectiveness of diabetes treatment in Japan and the USA, we examined medical expenses per diabetes outpatient (annual and per visit) at two specialist centers, Joslin Diabetes Center (USA) and Yokogawa Clinic (Japan). At Joslin, which implements advanced, short-term, intensive education of patients about self-management, the annual medical expenses incurred per outpatient and medical expenses incurred per outpatient visit were $418 ± 272 and $204 ± 100 (mean ± SD), respectively, but costs recovered were significantly below actual costs, and this is a source of serious financial pressure. On the other hand, diabetes patients tend to attend clinics regularly throughout the year in Japan, and the corresponding expenses per outpatient at Yokogawa Clinic were $1142 ± 631 annually and $114 ± 44 per visit; in this clinic, the actual costs were almost fully recovered, due to the comprehensive national insurance system in Japan. It is noteworthy that, despite the lower cost per visit, the annual cost per patient is substantially larger in Japan, due to the habit of frequent checkups. The marked increase in the number of patients with type 2 diabetes is relatively recent in Japan, where it may be related to an increasingly westernized diet, and currently there are few facilities for education of patients. Our findings suggest that the annual cost per patient in Japan could be greatly reduced if more time were allocated for advanced education of patients about self-management of their condition, since this should reduce the need for frequent checkups, depending upon patients’ ability to take responsibility for their condition. In addition, efforts should be made to clarify the roles of doctors, staff and management so as to generate an Continue reading >>

What Diabetes Costs You, Even If You Don't Have The Disease

What Diabetes Costs You, Even If You Don't Have The Disease

Diabetes is an expensive disease to treat, costing the United States $244 billion in 2012, according to an analysis of the disease's economic burden. When the loss of productivity due to illness and disability is added in, the bill comes to $322 billion, or $1,000 a year for each American, including those without diabetes. That's 48 percent higher than the same benchmark in 2007; not a healthy trend. The increase is being driven by a growing and aging population, the report finds, as well as more common risk factors like obesity, and higher medical costs. For a person diagnosed with diabetes, the average economic burden was $10,970 a year. Caring for a pregnant woman with gestational diabetes cost $5,800 a year. Undiagnosed diabetes costs $4,030 a case, and prediabetes, or having abnormal blood sugar that doesn't met the diagnostic criteria for diabetes, $510. Those last two reflect the fact that people with undiagnosed diabetes or elevated glucose tend to go to the doctor more often. Costs were generally higher in older people, not surprising since it can take years for the disease's more devastating complications, like heart attacks, blindness and nerve damage, to develop. About 29 million people have been diagnosed with diabetes, according to the Centers for Disease Control and Prevention; 8 million of them haven't yet been diagnosed. Another 86 million, or 37 percent of adults, have prediabetes, which is more common as people age. And though the symptoms of gestational diabetes usually recede when a woman gives birth, both she and her child are at higher risk for Type 2 diabetes. The researchers, at the IHS Life Sciences economic consulting group, combed data from multiple sources, including hospital discharges, private insurers and Medicare to come up with the tren Continue reading >>

The True Cost Of Diabetes And Preventing It

The True Cost Of Diabetes And Preventing It

From our publisher, Steve Freed, comes this thought-provoking discussion of how better diabetes control can impact cost, quality of life and mortality… Epidemiological study cohorts have shown a gradual increase in the worldwide incidence of type 2 diabetes mellitus. Based on the National Diabetes Statistics Report, 2014, 29 million people in the U.S. have diabetes aged 20 years or older (12.3% of the adult population), and 1 in 4 do not know it. This number has increased from 26 million in 2010. In 2012 alone, 1.7 million people aged 20 years or older were newly diagnosed with diabetes. Eighty-six million people aged 20 years and older have pre-diabetes, and if no precautions or actions are taken, 15-30% of people with pre-diabetes will develop type 2 diabetes within 5 years. Diabetes and its related complications account for $245 billion in total medical costs to include lost work and wages. This number is up from the reported $174 billion in 2010. In addition, over $500 billion of an estimated $3 trillion spent on healthcare last year was spent on conditions related to three chronic diseases: diabetes, heart disease and obesity. In the United States, the number of Emergency Department visits with diabetes as any-listed diagnosis increased from 9,464,000 in 2006 to 11,492,000 in 2009. Based on studies the average lifetime cost of caring for a type 2 diabetic patient is approximately $85,200 and can range from $55,000 to $130,000. Studies have shown that better control of diabetes can reduce cost, increase quality of life, and decrease mortality rate. One study showed that just by reducing A1c by 1% to 1.5%, type 2 diabetic patients can cut costs to $1,717 per target patient over 1 year. Prevention efforts nationwide are very crucial right now to combat serious healt Continue reading >>

Managing The Cost Of Diabetes

Managing The Cost Of Diabetes

Diabetes is one of the most common and costly chronic diseases, affecting more than 30 million Americans, with a total annual cost of $245 billion.1 Prevalence continues to increase as obesity rises, with the highest rates of diabetes found in minorities and older Americans. Consequences of diabetes include hypertension, coronary heart disease, stroke, chronic kidney disease, and blindness.2 Despite significant medical advancement in treatment, diabetes remains the seventh leading cause of death in the United States.3 As a result, health care providers must consider the impact of financial and educational barriers in outcomes associated with diabetic management. Diabetes is associated with a significant financial burden both to the patient and to the health care system. In 2012, the estimated cost of direct med- ical care in diabetes was $176 billion.1 The cost of prescription medications accounted for 18% of that cost, while diabetic supplies accounted for 12%.1 Individuals with diabetes had more than double the cost of annual medical expenditures compared with those without, with an average annual cost of $13,700.1 Although government and private insurance provide patient assistance in managing these costs, financial barriers may still pose a significant obstacle to patients in optimizing diabetic management. Patients who are unable to afford their medications and diabetic supplies will have less than optimal control of their blood sugar and glycated hemoglobin, putting them at increased risk for diabetic complications. Current guidelines provide detailed stepwise recommendations for initiation and adjustment of oral and injectable glycemic agents. A wide variety of agents are available for management of diabetes. However, agent utilization and medication compliance m Continue reading >>

Economic Costs Of Diabetes In The U.s. In 2012

Economic Costs Of Diabetes In The U.s. In 2012

Go to: Abstract This study updates previous estimates of the economic burden of diagnosed diabetes and quantifies the increased health resource use and lost productivity associated with diabetes in 2012. The study uses a prevalence-based approach that combines the demographics of the U.S. population in 2012 with diabetes prevalence, epidemiological data, health care cost, and economic data into a Cost of Diabetes Model. Health resource use and associated medical costs are analyzed by age, sex, race/ethnicity, insurance coverage, medical condition, and health service category. Data sources include national surveys, Medicare standard analytical files, and one of the largest claims databases for the commercially insured population in the U.S. The total estimated cost of diagnosed diabetes in 2012 is $245 billion, including $176 billion in direct medical costs and $69 billion in reduced productivity. The largest components of medical expenditures are hospital inpatient care (43% of the total medical cost), prescription medications to treat the complications of diabetes (18%), antidiabetic agents and diabetes supplies (12%), physician office visits (9%), and nursing/residential facility stays (8%). People with diagnosed diabetes incur average medical expenditures of about $13,700 per year, of which about $7,900 is attributed to diabetes. People with diagnosed diabetes, on average, have medical expenditures approximately 2.3 times higher than what expenditures would be in the absence of diabetes. For the cost categories analyzed, care for people with diagnosed diabetes accounts for more than 1 in 5 health care dollars in the U.S., and more than half of that expenditure is directly attributable to diabetes. Indirect costs include increased absenteeism ($5 billion) and reduced Continue reading >>

Chronic Conditions In America: Price And Prevalence

Chronic Conditions In America: Price And Prevalence

One issue—one health care issue, no less—has brought together a small alliance of congressional Democrats and Republicans in recent years: the need to better help people with chronic health conditions. A new RAND study shows why, and adds a note of urgency to the effort. It found that 60 percent of American adults now live with at least one chronic condition; 42 percent have more than one. They account for hundreds of billions of dollars in health care spending every year. The problem is only going to get more urgent. As the RAND study showed, chronic conditions like diabetes and high blood pressure increase with age—as an entire generation of baby boomers is about to find out. The RAND report comes just as several years of Senate hearings on the state of chronic care in America have led to a bipartisan bill that promises reform. As Sen. Ron Wyden, then-chairman of the Senate Finance Committee, put it during a 2014 hearing: “The strongest, richest country on earth can do better by those who have these kinds of chronic conditions.” Chronic Conditions Affect Millions of Americans In just two words, the term “chronic condition” captures a huge swath of what ails America. As used in the RAND study, it includes any physical or mental health condition that lasts more than one year and either limits ability or requires ongoing treatment. That means high cholesterol and high blood pressure, anxiety and arthritis, heart disease and diabetes. RAND researchers used data from a national survey on health care expenditures to compile a chartbook with the most up-to-date numbers on the cost and prevalence of such chronic conditions. Their estimates suggest that nearly 150 million Americans are living with at least one chronic condition; around 100 million of them have mo Continue reading >>

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