Background. Medical expenditures for diabetes are estimated, including expe
nditures for chronic complications of diabetes, unrelated conditions for wh
ich diabetics are at higher risk, and various comorbidities that raise the
cost of medical care.
Methods. A variety of national data sources are used to disaggregate the He
alth Care Financing Administration's national health expenditures in 1995 b
y sex, age, and diagnosis. Expenditures for chronic complications and other
unrelated conditions for which diabetics have higher rates of utilization
are determined by analysis of attributable risks. Additional expenditures g
enerated by extra hospital inpatient days and higher charges for nursing ho
me and home health care for comorbidities are estimated by regression analy
ses. Sensitivity analysis is used to calculate a range of estimated expendi
tures.
Results. Total expenditures attributed to diabetes are $47.9 billion in 199
5, including $18.8 billion for first listed diabetes, $18.7 billion for chr
onic complications, $8.5 billion for unrelated conditions, and $1.9 billion
for comorbidities. The range of total expenditures is $34.3 to $63.7 billi
on.
Conclusions. Comprehensive accounting of expenditures more accurately asses
ses the economic burden of diabetes and potential savings from prevention,
especially of chronic complications. This analysis is illustrative for othe
r chronic illnesses.