This study updates the economic burden of diagnosed diabetes in the U.S. for 2012, estimating a total cost of $245 billion, including $176 billion in direct medical costs and $69 billion in lost productivity. The largest components of medical expenditures are hospital inpatient care (43% of the total), prescription medications (18%), antidiabetic agents and supplies (12%), physician office visits (9%), and nursing/residential facility stays (8%). People with diagnosed diabetes incur an average of $13,700 per year in medical costs, with about $7,900 attributed to diabetes. The study also quantifies indirect costs, including increased absenteeism ($5 billion), reduced productivity while working ($20.8 billion), reduced productivity for those not in the labor force ($2.7 billion), inability to work due to disability ($21.6 billion), and lost productive capacity due to early mortality ($18.5 billion). The findings highlight the substantial burden of diabetes on society, with diabetes accounting for more than 1 in 5 healthcare dollars and over half of that expenditure directly attributable to diabetes.This study updates the economic burden of diagnosed diabetes in the U.S. for 2012, estimating a total cost of $245 billion, including $176 billion in direct medical costs and $69 billion in lost productivity. The largest components of medical expenditures are hospital inpatient care (43% of the total), prescription medications (18%), antidiabetic agents and supplies (12%), physician office visits (9%), and nursing/residential facility stays (8%). People with diagnosed diabetes incur an average of $13,700 per year in medical costs, with about $7,900 attributed to diabetes. The study also quantifies indirect costs, including increased absenteeism ($5 billion), reduced productivity while working ($20.8 billion), reduced productivity for those not in the labor force ($2.7 billion), inability to work due to disability ($21.6 billion), and lost productive capacity due to early mortality ($18.5 billion). The findings highlight the substantial burden of diabetes on society, with diabetes accounting for more than 1 in 5 healthcare dollars and over half of that expenditure directly attributable to diabetes.