Fiscal Impact

National Economic Burden

In 2007, the national economic burden of diabetes exceeded $174 billion in medical costs and loss of productivity.[1] The figures reflect productivity loss of $58 billion due to absenteeism, presenteeism (reduced productivity while at work), disability that prevents working, and early mortality related to diabetes. People with diabetes have health expenses two times higher than those who do not have diabetes. Approximately one in ten healthcare dollars is related to diabetes. [1] However, the costs can be reduced by early diagnosis, education, prevention, and management of the disease.

Source: [1] American Diabetes Association. Economic costs of diabetes in the U.S. in 2007. Diabetes Care. 2008;31 (3):576-615.


Diabetes and the Impact on State Budgets

With rising prevalence rates and staggering spikes in costs associated with treating acute and critical complications of diabetes, state budgets are significantly impacted by the adverse effects of this chronic disease. Stacy Mazer, Senior Staff Associate of the National Association of State Budget Officers, provided an overview of the healthcare budget outlook and explore how states prepare for the costs associated with this and other chronic diseases.


Diabetes Funding & Cost by State:

COST CALCULATOR: The American Diabetes Association released a cost calculator that estimates the cost of diabetes at the state and congressional district level using 2007 data.

CDC FUNDING: The CDC provides funding for state diabetes programs. A list of 2003-2004 funding given to each state can be found here. To see how your state can participate in the State-based Diabetes Prevention and Control Program click here


 Analyzing Diabetes Costs

 An Economic Analysis of Interventions for Diabetes
Source: California Diabetes Program
Authors: D.C. Klonoff and D.M. Schwartz

This article looks at diabetes interventions and their economic impact.
Abstract: The objective of this article is to stratify interventions for diabetesaccording to their economic impact. The authors conducted a review of the literatureto select articles that performed a cost-benefit analysis for 17 widelypracticed interventions for diabetes. A scale for categorizinginterventions according to their economic impact was defined. The 17interventions were classified as follows: 1) clearly cost-saving; 2)clearly cost-effective; 3) possibly cost-effective; 4) non-cost-effective; or 5) unclear.

  1. Clearly cost-saving interventions included eye care andpre-conception care.
  2. Clearly cost-effective interventions includednephropathy prevention in type 1 diabetes and improved glycemic control.
  3. Possibly cost-effective interventions included nephropathy prevention intype 2 diabetes and self-management training.
  4. Non-cost-effectiveinterventions were not identified.
  5. Unclear economic impact interventions included case management, medical nutrition therapy, self-monitoringof blood glucose, foot care, blood pressure control, blood lipid control,smoking cessation, exercise, weight loss, HbA1c measurement, influenzavaccination, and pneumococcus vaccination.

Widely practiced interventions for patients with diabetes can be clearly cost-saving and clearly cost-effective. These practices are attractive from both a medical and an economic perspective.