Site icon Coupontoaster Blog

The Price of Health: The Economic Burden of Diabetes Treatment and Medications

David Boon
The Price of Health: Exploring the Economic Burden of Diabetes Treatment and Medications

Living with diabetes comes with not just physical challenges but also significant financial burdens. The costs associated with diabetes treatment and medications have been steadily increasing, posing challenges for individuals, families and healthcare systems. Intention of writing this article is to share information about the economic landscape of diabetes care, analyzing costs, impacts and strategies for managing the economic burden effectively.

Living with diabetes requires a significant investment in medications, supplies, and healthcare services, which can be a substantial strain on household finances. The financial burden of diabetes can impact daily life, causing stress and anxiety for those affected and their loved ones. As a result, individuals may be forced to make difficult decisions between paying for their medication or other essential needs, such as food and housing. The emotional toll of living with a chronic disease like diabetes should not be underestimated. The constant need for monitoring and treatment can be exhausting and demoralizing, leading to feelings of hopelessness and despair. Furthermore, the financial burden of diabetes can also affect relationships and overall well-being, making it essential to address the economic aspects of this disease.

Medication Expenses

Breaking down the costs of diabetes medications provides a clearer picture of the economic impact. For example, insulin costs can vary based on the type (e.g., rapid-acting, long-acting) and delivery method (e.g., vials, pens, pumps). Around the world, the price of insulin and other diabetes medications can be a major challenge. In some countries, these medications are very expensive, making it hard for people to get the treatment they need. This is especially true in low-income countries, where paying for insulin can take up a big part of a family’s income. This financial strain can lead to people not using their medications as prescribed, which can make their health worse.

  1. The total annual cost of diagnosed diabetes in the US is estimated to be $327 billion as of 2017. This figure includes $237 billion in direct medical costs and $90 billion in reduced productivity. This means that care for people with diagnosed diabetes accounts for one in four health care dollars spent in the US, with more than half of that expenditure being directly attributable to diabetes.
  2. The economic cost of diabetes in the US has been on a steady rise. In 2022, the total annual cost was reported to be $412.9 billion, including $306.6 billion in direct medical costs and $106.3 billion in indirect costs. This represents a significant increase from the $327 billion reported in 2017.
  3. The cost of diabetes medications is a significant contributor to this economic burden. The cost of glucose-lowering drugs alone was estimated to be $57.6 billion per year in the US in 2015-2017. This accounts for approximately 15-20% of the estimated annual cost for all prescription drugs in the US.
  4. The high cost of diabetes drugs has a disparate impact on the most vulnerable patients. For example, the average annual cost per user of glucose-lowering drugs increased by 147% from 2015 to 2017.
  5. The estimated sustainable cost-based prices for diabetes medicines suggest that costs could be significantly lower than current prices. For instance, using a basal-bolus regimen of insulin glargine once daily and 3 insulin aspart injections, costs could be as low as $111 per year. This includes the costs of insulin, injection devices, and needles, but excludes glucose monitoring.
  6. The economic burden of diabetes is not just financial. It also has a significant impact on productivity and quality of life. For example, if people with diabetes participated in the workforce like peers without diabetes, there would be 2 million more people between the ages of 18 and 65 in the workforce.
  7. In 2018/19, the Net Ingredient Cost (NIC) of prescribing in primary care was £8,630 million, with £1,075 million allocated to drugs and devices used in diabetes.
  8. The cost of diabetes drugs in the UK has increased from £599 million in 2008/09 to £1,075 million in 2018/19, a 79.3% increase.
  9. In 2010/2011, the total cost of diabetes in the UK was estimated at £23.7bn, with £9.8bn in direct costs (£1bn for Type 1 diabetes and £8.8bn for Type 2 diabetes) and £13.9bn in indirect costs.
  10. The total annual cost of diagnosed diabetes in the US was estimated to be $327 billion in 2017, with $237 billion in direct medical costs and $90 billion in reduced productivity.

Insulin is a key medication for people with diabetes, especially those with type 1 diabetes. The costs can vary significantly based on the type and delivery method:

  1. Types of Insulin:
    • Rapid-Acting Insulin: This type works quickly and is taken before meals to control blood sugar spikes. Brands like Humalog and Novolog fall into this category.
    • Long-Acting Insulin: This type works over a long period, providing a steady insulin level. Examples include Lantus and Levemir.
  2. Delivery Methods:
    • Vials: Traditional insulin vials are used with syringes. They can be cheaper but require more skill and time to administer.
    • Pens: Insulin pens are more convenient and easier to use than vials and syringes. However, they tend to be more expensive.
    • Pumps: Insulin pumps provide a continuous supply of insulin throughout the day. They are the most expensive option but offer precise control over insulin delivery.

The cost of diabetes medications varies widely around the world. In many countries, high insulin prices make it challenging for people with diabetes to afford their treatment. For instance, in low-income countries, insulin can consume a large portion of a family’s income. In the United States, the high cost of insulin has been a significant issue. Many Americans struggle to afford their insulin, with some even rationing their doses to save money, which can be dangerous. Efforts are being made to address this, including legislative actions to cap insulin prices and programs to provide insulin at reduced costs or for free to those in need.

In addition to insulin, people with diabetes may require other medications to manage their condition and related complications:

Here are some examples of countries that have struggled with high prices of diabetes medications and treatments:

Venezuela:

Argentina:

Nigeria:

India:

Healthcare Service Costs

Beyond medications, healthcare services such as doctor visits, laboratory tests, specialist consultations and diabetes education programs contribute to overall costs. The frequency of these services, copayments and insurance coverage play significant roles in determining out-of-pocket expenses for patients.

  1. In 2022, the total national health expenditures in the US were estimated to be $4.4 trillion, equating to approximately $13,493 per capita. This represents a 4.1% increase from the previous year.
  2. The share of healthcare spending in the US as a percentage of the Gross Domestic Product (GDP) was 17.3% in 2022. This is comparable to pre-pandemic levels, with the share being 17.5% in 2019, 19.5% in 2020, and 18.2% in 2021.
  3. The top three categories of personal health care spending in 2022 were hospital care (30.3%), physician services (20.4%), and clinical services (18.9%).
  4. In 2022, spending on hospital care grew by 2.2%, while spending on physician services increased by 2.6%. This growth was primarily driven by increases in prices and utilization.
  5. Government spending on healthcare was significant in 2022, with an estimated 70 million individuals (21.2% of the U.S. population) receiving Medicaid or CHIP. These programs accounted for $829 billion (19.5% of overall health care expenditures).
  6. The U.S. has the most expensive healthcare system in the world, with a higher per capita healthcare cost than other countries. Despite this, the U.S. has a lower life expectancy compared to other developed nations.
  7. The cost of health insurance is a significant component of healthcare spending in the U.S. In 2022, net cost of health insurance was $338 billion, accounting for 7.7% of total health care spending.
  8. The Affordable Care Act (ACA) has had a significant impact on health insurance coverage in the U.S. An estimated 304 million, or 92.1%, Americans had health insurance at some point in 2022, which is slightly higher than the 300.9 million, or 91.7% of people, who had health insurance at some point in 2021.
  9. The Global Health Expenditure Database (GHED) provides comparable data on health expenditure for more than 190 WHO Member States since 2000.
  10. In 2022, the total national health expenditures in the US were estimated to be $4.4 trillion, equating to approximately $13,493 per capita.
  11. The share of healthcare spending in the US as a percentage of the Gross Domestic Product (GDP) was 17.3% in 2022.
  12. The top three categories of personal health care spending in 2022 were hospital care (30.3%), physician services (20.4%), and clinical services (18.9%).
  13. In 2022, spending on hospital care grew by 2.2%, while spending on physician services increased by 2.6%.
  14. Government spending on healthcare was significant in 2022, with an estimated 70 million individuals (21.2% of the U.S. population) receiving Medicaid or CHIP.
  15. The U.S. has the most expensive healthcare system in the world, with a higher per capita healthcare cost than other countries.
  16. The cost of health insurance is a significant component of healthcare spending in the U.S., with net cost of health insurance being $338 billion in 2022.
  17. The Affordable Care Act (ACA) has had a significant impact on health insurance coverage in the U.S., with an estimated 304 million, or 92.1%, Americans having health insurance at some point in 2022.
  18. The medical cost trend for 2024 is projected to decrease to a global average of 9.9%, down from 10.7% in 2023.
  19. Healthcare insurers participating in a survey expect the sharpest decrease in medical trend to occur in Europe, where it is projected to drop from 10.9% in 2023 to 9.3% in 2024.
  20. The growth in medical trend is expected to slow globally in 2024, but insurers expect costs to resume their ascent over the longer term.
  21. In regions such as Asia Pacific and the Middle East and Africa, many organizations’ medical insurance programs continue to exclude coverage for treatment of certain conditions for which treatments exist.
  22. The decline in the quality and funding of public healthcare systems has increased as a top driver of private medical costs.
  23. The total annual cost of diagnosed diabetes in the US was estimated to be $327 billion in 2017, with $237 billion in direct medical costs and $90 billion in reduced productivity.
  24. The total annual cost of diabetes in the UK was estimated at £23.7bn in 2010/2011, with £9.8bn in direct costs and £13.9bn in indirect costs.
  25. The cost of diabetes drugs in the UK has increased from £599 million in 2008/09 to £1,075 million in 2018/19.
  26. The estimated sustainable cost-based prices for diabetes medicines suggest that costs could be significantly lower than current prices.
  27. The economic burden of diabetes and its treatment in the US is substantial and continues to grow.
  28. The cost of diabetes medications, in particular, is a significant contributor to this burden.

Doctor Visits

Regular doctor visits are essential for people with diabetes. These appointments help monitor the condition, adjust treatments, and check for complications. The frequency of these visits can vary, but they often add up to a significant expense. Even with insurance, copayments for each visit can quickly become a financial burden.

Laboratory Tests

Frequent lab tests are another important part of diabetes care. These tests check blood sugar levels, kidney function, cholesterol, and other important health indicators. The cost of these tests can vary, but they are necessary to manage the condition effectively.

Specialist Consultations

Many people with diabetes need to see specialists, such as endocrinologists, ophthalmologists, and dietitians. These specialists provide expert care for different aspects of diabetes management. However, specialist consultations often come with higher copayments and out-of-pocket costs, adding to the overall financial burden.

Diabetes Education Programs

Education is a crucial part of diabetes management. Diabetes education programs teach patients how to manage their condition, including how to monitor blood sugar, take medications correctly, and make healthy lifestyle choices. These programs can be very beneficial, but they can also be an added expense, especially if insurance does not cover them fully.

Analyzing economic indicators related to diabetes care, such as healthcare expenditures, cost drivers and reimbursement trends, provides insights into the broader economic impact. Healthcare spending related to diabetes includes direct costs (e.g., medical services, medications) and indirect costs (e.g., productivity losses, disability).

Economic Challenges for Patients

Many people with diabetes struggle to afford their medications and treatments, leading to difficult choices between their health and other essential expenses. A survey by the American Diabetes Association found that 1 in 4 patients with diabetes has skipped or delayed filling their insulin prescriptions due to cost concerns. Another survey by the Kaiser Family Foundation found that 62% of patients with diabetes reported difficulty affording their medications, with 44% saying they had to make sacrifices in other areas of their budget to pay for their treatments.

The financial burden of diabetes can be overwhelming, with many patients facing thousands of dollars in out-of-pocket costs each year. According to a report by the Healthcare Financial Management Association, the average annual cost of diabetes treatment in the US is around $13,000 per patient, with many patients paying upwards of $5,000 out-of-pocket. A survey by the National Association of Community Health Centers found that 71% of patients with diabetes reported difficulty affording their medications, with 55% saying they had to choose between paying for their treatments or other essential expenses like food and housing.

Individuals with diabetes often face significant economic challenges. Medication affordability, insurance coverage limitations, copayments and high deductibles can create financial barriers to accessing essential care. These challenges can lead to medication non-adherence, delayed treatment and poorer health outcomes.

The economic challenges faced by patients with diabetes can have serious consequences for their health, with many patients reporting that they have rationed their insulin doses or skipped medical appointments due to cost concerns. According to a report by the Centers for Disease Control and Prevention, patients who ration their insulin doses are more likely to experience serious complications like kidney damage and blindness. A survey by the Patient Access Network Foundation found that 63% of patients with diabetes reported feeling stressed or anxious about affording their treatments, with 45% saying they had experienced depression or anxiety due to their financial struggles.

Impact on Quality of Life

The economic burden of diabetes goes beyond financial strain; it can impact an individual’s overall quality of life. Stress related to managing costs, coping with insurance complexities and navigating healthcare services can contribute to emotional and mental health challenges.

Global Data and Surveys:

Worst-Affected Regions:

Strategies for Cost Management

Managing the economic burden of diabetes treatment requires a multifaceted approach. Patients can explore generic medication options, enroll in patient assistance programs offered by pharmaceutical companies and advocate for policy changes to improve affordability. Financial planning, budgeting and communication with healthcare providers are essential in navigating cost-related challenges effectively.

Save on Insulin

Cut Lab Costs

Reduce Doctor Visit Costs

Save on Supplies

Use Community Resources

Patient Assistance Programs

Pharmaceutical companies often provide patient assistance programs that offer discounts, rebates or free medications for eligible individuals. Patients can also seek support from nonprofit organizations, community resources and advocacy groups that offer financial assistance, copay relief and educational resources.

Value-Based Care and Payment Models

Value-based care models incentivize quality outcomes and preventive care, shifting focus from volume-based reimbursement to value-driven healthcare delivery. Payment reforms that reward positive health outcomes, care coordination and patient engagement can lead to cost savings and improved healthcare efficiency.

Access to Affordable Care

Access to affordable healthcare services is crucial for individuals with diabetes. Community health centers, telehealth services and patient assistance programs offer options for accessing care at reduced costs. Preventive care, regular screenings and diabetes education programs can help individuals manage their health proactively, reducing the risk of costly complications. 

Additionally, for individuals seeking cost-effective medication options, exploring reputable online pharmacies that allow you to buy Zepbound online may present a viable solution to mitigate medication expenses while ensuring quality and affordability.

The economic burden of diabetes treatment and medications is a complex issue that requires collaborative efforts and innovative solutions. By understanding the economic landscape, exploring cost-saving strategies, advocating for policy changes and empowering patients, we can work towards improving diabetes care affordability and accessibility for all individuals living with diabetes.

Overall average estimated cost and expenses:

Please note that the following table provides rough estimates and may vary significantly depending on individual circumstances, location and healthcare system. The costs are presented in U.S. dollars (USD) and represent average annual expenses.

CategoryEstimated Annual Cost (USD)
Medication Expenses 
– Insulin$2,500 – $5,000
– Oral glucose-lowering drugs$1,000 – $3,000
Healthcare Service Costs 
– Doctor visits and consultations$1,000 – $2,500
– Laboratory tests$500 – $1,500
– Diabetes education programs$500 – $1,000
Indirect Costs 
– Productivity loss$3,000 – $5,000
– Absenteeism$1,500 – $3,000
Long-Term Complications 
– Cardiovascular disease$10,000 – $20,000
– Kidney disease$15,000 – $30,000
– Vision problems$1,000 – $3,000
– Neuropathy$500 – $2,000
Total Estimated Annual Cost$35,000 – $75,000
Exit mobile version