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How Much Does The Us Spend On Diabetes?

Diabetes Has Become One Of America’s Most Expensive Diseases

Diabetes Has Become One Of America’s Most Expensive Diseases

With an estimated 30 million Americans struggling with diabetes, the disease is one of the nation’s most entrenched chronic conditions. It’s also one of the most expensive. Consider these facts: ▪ In California, roughly 55 percent of adults either have diagnosed diabetes or blood-sugar levels that put them at high risk of developing the disease. That includes roughly 1 in every 3 adults ages 18 to 39 – a finding researchers call alarming. ▪ In terms of personal health care spending, diabetes tops the nation’s list of 155 chronic conditions, hitting $101.4 billion in 2013. According to the American Diabetes Association, average medical expenditures for people with diabetes are an estimated 2.3 times higher than for those without it. Never miss a local story. Sign up today for a free 30 day free trial of unlimited digital access. SUBSCRIBE NOW ▪ The cost of insulin alone has spiked by triple-digit percentages in the past 20 years. “It’s horrible for patients,” said N. Chesney Hoagland-Fuchs, a registered nurse and chairwoman of the Diabetes Coalition of California. She said prices for insulin medications began a slow climb after the recession and started “shooting up” around 2013. Over the past 20 years, the price of human insulin produced by two major manufacturers – Eli Lilly and Novo Nordisk – rose 450 percent, after accounting for inflation, according to a 2016 Washington Post analysis of data from Michigan-based Truven Health Analytics. A single 10-milliliter vial of Eli Lilly’s Humalog insulin – less than a month’s supply for many adults – was listed at $254.80 last year, compared with $20.82 in 1996, a Truven Health representative said. Insulin is only one sliver of the cost of living with Type 1 and Type 2 diabetes. Depending on Continue reading >>

The U.s. Spends More On Health Care Than Any Other Country. Here’s What We’re Buying.

The U.s. Spends More On Health Care Than Any Other Country. Here’s What We’re Buying.

American health-care spending, measured in trillions of dollars, boggles the mind. Last year, we spent $3.2 trillion on health care -- a number so large that it can be difficult to grasp its scale. A new study published in the Journal of the American Medical Association reveals what patients and their insurers are spending that money on, breaking it down by 155 diseases, patient age and category -- such as pharmaceuticals or hospitalizations. Among its findings: Chronic -- and often preventable -- diseases are a huge driver of personal health spending. The three most expensive diseases in 2013: diabetes ($101 billion), the most common form of heart disease ($88 billion) and back and neck pain ($88 billion). Yearly spending increases aren't uniform: Over a nearly two-decade period, diabetes and low back and neck pain grew at more than 6 percent per year -- much faster than overall spending. Meanwhile, heart disease spending grew at 0.2 percent. Medical spending increases with age -- with the exception of newborns. About 38 percent of personal health spending in 2013 was for people over age 65. Annual spending for girls between 1 and 4 years old averaged $2,000 per person; older women 70 to 74 years old averaged $16,000. The analysis provides some insight into what's driving one particularly large statistic: Within a decade, close to a fifth of the American economy will consist of health care. "It’s important we have a complete landscape when thinking about ways to make the health care system more efficient," said Joseph Dieleman, an assistant professor at the Institute for Health Metrics and Evaluation at the University of Washington who led the work. The data show that the primary drivers of health-care spending vary considerably. For example, more than half of diabet 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 >>

The Cost Of Diabetes Care

The Cost Of Diabetes Care

Today’s Patient Money explores the various costs associated with diabetes as well as suggestions for how patients can save money on their care. Diabetes patients spend an average of $6,000 annually on costs for treating their disease, according to a recent survey conducted by Consumer Reports Health. That figure includes monitoring supplies, medicines, doctor visits, annual eye exams and other routine costs. But the total doesn’t include the costs of medical complications that often result from Type 2 diabetes, such as heart disease, strokes, liver and kidney damage, eye damage and a susceptibility to infections and poor healing that can lead to amputations. The C.D.C. estimates that diabetic patients on average pay twice as much as those without the illness for health care. To learn more, read the full column, “Protecting Yourself From the Cost of Type 2 Diabetes,” and then please join the discussion below. 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 >>

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 >>

It Costs $10k More To Treat People With Diabetes, Insurers Say

It Costs $10k More To Treat People With Diabetes, Insurers Say

It now costs $10,000 or more per person annually to treat someone with diabetes than someone who doesn’t have the chronic disease, according to a new analysis of large insurance company claims data. The Health Care Cost Institute, a Washington-based group backed by some of the nation’s largest insurance companies including UnitedHealth Group UNH -0.18% (UNH), (HUM) (AET) and says that spending per capita on health care for people with diabetes was just shy of $15,000 in 2013. By comparison, $4,305 was spent in the same year on people who didn't have diabetes, according to claims information for people under age 65 with employer-sponsored insurance from data provided to the group. The report is the latest push from insurance companies to use their vast claims data to point out areas of rising costs and the reasons behind it. The Blue Cross and Blue Shield Association, which represents Anthem (ANTM) and myriad other Blue Cross and Blue Shield companies, has been issuing more reports of late as well showing cost differences for treatments and surgeries and how they vary across the country. (See related gallery from Blue Cross on knee and hip surgery costs.) In the institute’s diabetes report, the insurers and their data point to expensive new brand name insulin and other prescription medications as a key driver in the diabetes costs per capita that jumped 4 percent in 2013 to $14,999 from $14,404 in 2012. Costs for people without diabetes rose to $4,305 in 2013 from $4,146. “We’re seeing spending on anti-diabetic medication and insulin specifically and branded versions of those products go up,” Amanda Frost, researcher for the institute, said in an interview. “We looked at 2009 to 2013 spending, but it was really 2011, 2012 and 2013 that spending increased fo 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 >>

Medicare Fee-for-service Spending For Diabetes: Examining Aging And Comorbidities

Medicare Fee-for-service Spending For Diabetes: Examining Aging And Comorbidities

1 KPMG, LLP, Economic and Valuation Services, USA 2 Health Systems Research Associates, USA Citation: Erdem E, Korda H (2014) Medicare Fee-for-Service Spending for Diabetes: Examining Aging and Comorbidities. J Diabetes Metab 5:345. doi: 10.4172/2155-6156.1000345 Copyright: © 2014 Erdem E, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Visit for more related articles at Journal of Diabetes & Metabolism Abstract This research report examines prevalence and spending on diabetes for fee-for-service (FFS) beneficiaries of the Medicare program, the health insurance program that covers the majority of adults age 65 and above in the U.S. To date, most studies of spending on diabetes care in the U.S. have relied on self-reported survey data and estimates of utilization and spending, but do not represent actual spending identified through administrative claims. This report is based on newly available administrative claims data from the Centers for Medicare & Medicaid Services 2010 Chronic Conditions Public Use File. Diabetes was prevalent among approximately 1/4 of Medicare FFS beneficiaries in 2010. Prevalence increased with age initially for the aged population, but dropped for beneficiaries > 85. Only about 1/4 of diabetic beneficiaries had diabetes without a comorbidity. Beneficiaries with diabetes had 2.8 chronic conditions (including diabetes) with average Medicare Part A and Part B spending of $5,741 and $5,991, and drug costs of $3,119, respectively. Spending increased with age for beneficiaries >65. Findings of these analyses consider diabetes in the context of chronic comorbi Continue reading >>

Us Spending On Personal Health Care And Public Health, 1996-2013

Us Spending On Personal Health Care And Public Health, 1996-2013

Importance US health care spending has continued to increase, and now accounts for more than 17% of the US economy. Despite the size and growth of this spending, little is known about how spending on each condition varies by age and across time. Objective To systematically and comprehensively estimate US spending on personal health care and public health, according to condition, age and sex group, and type of care. Design and Setting Government budgets, insurance claims, facility surveys, household surveys, and official US records from 1996 through 2013 were collected and combined. In total, 183 sources of data were used to estimate spending for 155 conditions (including cancer, which was disaggregated into 29 conditions). For each record, spending was extracted, along with the age and sex of the patient, and the type of care. Spending was adjusted to reflect the health condition treated, rather than the primary diagnosis. Exposures Encounter with US health care system. Main Outcomes and Measures National spending estimates stratified by condition, age and sex group, and type of care. Results From 1996 through 2013, $30.1 trillion of personal health care spending was disaggregated by 155 conditions, age and sex group, and type of care. Among these 155 conditions, diabetes had the highest health care spending in 2013, with an estimated $101.4 billion (uncertainty interval [UI], $96.7 billion-$106.5 billion) in spending, including 57.6% (UI, 53.8%-62.1%) spent on pharmaceuticals and 23.5% (UI, 21.7%-25.7%) spent on ambulatory care. Ischemic heart disease accounted for the second-highest amount of health care spending in 2013, with estimated spending of $88.1 billion (UI, $82.7 billion-$92.9 billion), and low back and neck pain accounted for the third-highest amount, with 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 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 >>

4.5-year Study Finds Diabetes And Related Drug Costs Surging

4.5-year Study Finds Diabetes And Related Drug Costs Surging

Nearly 1 in 10 Americans have diabetes.1 It’s an epidemic, and it doesn’t appear to be stopping any time soon. By 2050, as many as 1 in 3 adults in the United States will have diabetes.2 The growing diabetic population is having a marked impact on drug use and spend. Coupled with drug price inflation, rising use has led to mounting costs for plan sponsors. To help measure the impact of rising use and costs, our team dove deep into Prime’s data to study diabetes prevalence, incidence and drug therapy. What we studied Our research team studied nearly 4 million commercial members who were continuously enrolled in a plan for 4.5 years. We used criteria to identify members who had diabetes-related claims, and broke the data down further by diabetes (Type 1 or Type 2) and therapy type. What we learned Diabetes drug use and costs are rising quickly. From January 2011 to June 2015: The average cost for all diabetes drugs increased 168 percent. Diabetes drugs, as a category, increased from 6.7 percent to 10.7 percent of total drug spend. Insulin costs increased 200 percent, and use increased 50 percent. Insulin costs rose from 3 percent to 5.4 percent of total drug spend. What plan sponsors can do Programs such as step therapy can help plan sponsors encourage the use of generics with known, long-term safety and efficacy, resulting in lower overall drug spend. In addition, programs that help drive adherence by identifying and communicating gaps in care (such as Prime’s GuidedHealth® program) can help improve safety and outcomes, helping members get the medicines they need to live well and lowering the total cost of care. View the full research poster: Diabetes Mellitus (DM) Prevalence, Incidence, Drug Regimens and Insulin Therapy Cost by Type Among Four Million Commercia Continue reading >>

Budgeting For Diabetes Health Costs

Budgeting For Diabetes Health Costs

Diabetes can be a costly condition to manage. According to the American Diabetes Association (ADA), the cost of diabetes in the United States is more than $245 billion a year, which includes direct medical costs and the cost of reduced productivity. For a person living with diabetes, medical expenses are about 2.3 times higher than those for the average person without diabetes. People with diabetes accrue about $7,900 in diabetes-related healthcare costs annually and about $5,800 because of other health problems. One bright spot, according to the ADA, is the Affordable Care Act, which President Obama signed into law in 2010 and which has helped people with diabetes keep their insurance coverage and has broadened healthcare options to help manage costs. Whether you get your coverage through private health insurance, Medicare, Medicaid, your employer, or the Affordable Care Act, it’s important to read the fine print on your policy so you understand all the costs, including deductibles, copays, and prescription costs. Breaking Down the Costs of Diabetes Researchers with the ADA crunched data from national surveys and health databases and determined that the bulk of diabetes costs occur in these categories: 43 percent for hospital inpatient care. 18 percent for prescription medications. 12 percent for anti-diabetic agents and supplies. 9 percent for physician office visits. 8 percent for residential care facilities. The data were published in the April 2013 issue of Diabetes Care. Shannon Knapp, RN, a diabetes educator at the Cleveland Clinic in Ohio, suggests looking at the following elements when calculating the cost of your diabetes care: Diabetes medications. These include oral medications, insulin, and other injectable medication for diabetes. "Some of the newer and Continue reading >>

America Is Number 1 - In Diabetes Costs

America Is Number 1 - In Diabetes Costs

Everyone likes being #1, and Americans are no exception. However, few Americans will be celebrating that they have the world’s highest out of pocket costs for insulin and other life-saving diabetes supplies. T1International Survey: Out-Of-Pocket Costs Without accounting for average monthly income, the USA ‘won’ first place in our cost survey by a wide margin. It even ‘beat’ war-torn Syria, a place where access to diabetes supplies is disrupted by bombings and blockades. Our US respondents told us they paid, on average, $571.69 per month on diabetes costs. This included an average: $90.84 per vial on rapid-acting insulin $120.55 per vial on long-acting insulin $31.95 on one pod of 50 test strips $30.47 on one pot of ketone strips $81.67 on a glucagon emergency shot Insurance Doesn’t Cut It Even with insurance, many Americans are spending around half their after tax income on insulin and other supplies they need to stay alive: “Insurance helps but it is 9k a year for a 30k year salary.” That is, when your insurance company allows you to get what you need. For many respondents, insurance companies actively stop them from getting more diabetes supplies. All of this has consequences. “Insurance companies do not care if I use all of my insulin or strips before they can refill it for me. It puts me in a struggle of blood sugars versus insurance.” The situation is so out of control many Americans with type 1 diabetes would save thousands by moving to a comparatively less wealthy country with lower costs, such as Argentina or Chile. Even in countries with no out of pocket drug coverage, such as Canada, type 1 diabetes costs were much more affordable. “There are many times I can't afford my meds so I go without, even knowing it will kill me.” The Press Can Continue reading >>

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