Economic Costs of Diabetes in the U.S. in 2012

Economic Costs of Diabetes in the U.S. in 2012

April 2013 | Wenyu Yang, Timothy M. Dall, Pragna Halder, Paul Gallo, Stacey L. Kowal, Paul F. Hogan
The 2012 economic cost of diagnosed diabetes in the U.S. was estimated at $245 billion, including $176 billion in direct medical costs and $69 billion in lost productivity. The largest components of medical expenditures were hospital inpatient care (43%), prescription medications for diabetes complications (18%), antidiabetic agents and supplies (12%), physician office visits (9%), and nursing/residential facility stays (8%). People with diabetes incurred an average of $13,700 in medical costs annually, with $7,900 attributed to diabetes. Medical expenditures for people with diabetes were 2.3 times higher than what they would be without diabetes. Diabetes accounted for over 20% of U.S. healthcare dollars, with more than half of that directly attributable to diabetes. Indirect costs included absenteeism ($5 billion), reduced productivity at work ($20.8 billion), reduced productivity for those not in the labor force ($2.7 billion), disability-related inability to work ($21.6 billion), and lost productivity due to early mortality ($18.5 billion). The total economic cost of diabetes in 2012 was 41% higher than the 2007 estimate of $174 billion. The study highlights the significant burden of diabetes on society, including intangible costs like pain and suffering. The study used a prevalence-based approach, combining demographic data, diabetes prevalence, and healthcare cost data into a Cost of Diabetes Model. It analyzed medical expenditures by age, sex, race/ethnicity, insurance coverage, medical condition, and health service category. The study found that diabetes prevalence among nursing home residents was 32.8%, and that people with diabetes had higher medical expenditures. The study also estimated indirect costs, including workdays missed due to health conditions, reduced productivity, and premature mortality. The total indirect cost of diabetes was estimated at $68.6 billion, with the majority coming from unemployment due to disability, presenteeism, and premature mortality. The study concluded that diabetes imposes a substantial economic burden on the U.S., with significant costs related to healthcare and lost productivity. The findings underscore the need for policies to reduce diabetes prevalence and its associated burden.The 2012 economic cost of diagnosed diabetes in the U.S. was estimated at $245 billion, including $176 billion in direct medical costs and $69 billion in lost productivity. The largest components of medical expenditures were hospital inpatient care (43%), prescription medications for diabetes complications (18%), antidiabetic agents and supplies (12%), physician office visits (9%), and nursing/residential facility stays (8%). People with diabetes incurred an average of $13,700 in medical costs annually, with $7,900 attributed to diabetes. Medical expenditures for people with diabetes were 2.3 times higher than what they would be without diabetes. Diabetes accounted for over 20% of U.S. healthcare dollars, with more than half of that directly attributable to diabetes. Indirect costs included absenteeism ($5 billion), reduced productivity at work ($20.8 billion), reduced productivity for those not in the labor force ($2.7 billion), disability-related inability to work ($21.6 billion), and lost productivity due to early mortality ($18.5 billion). The total economic cost of diabetes in 2012 was 41% higher than the 2007 estimate of $174 billion. The study highlights the significant burden of diabetes on society, including intangible costs like pain and suffering. The study used a prevalence-based approach, combining demographic data, diabetes prevalence, and healthcare cost data into a Cost of Diabetes Model. It analyzed medical expenditures by age, sex, race/ethnicity, insurance coverage, medical condition, and health service category. The study found that diabetes prevalence among nursing home residents was 32.8%, and that people with diabetes had higher medical expenditures. The study also estimated indirect costs, including workdays missed due to health conditions, reduced productivity, and premature mortality. The total indirect cost of diabetes was estimated at $68.6 billion, with the majority coming from unemployment due to disability, presenteeism, and premature mortality. The study concluded that diabetes imposes a substantial economic burden on the U.S., with significant costs related to healthcare and lost productivity. The findings underscore the need for policies to reduce diabetes prevalence and its associated burden.
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