Diabetes an Economic Burden to Americans, Study Shows
How much is diabetes costing the nation? Although the pain, suffering, and impact on the quality of life may not be expressed in dollar signs, it may be worthwhile to learn how much this disease is becoming a financial and/or an economic burden to the United States of America, aside from implications to every citizen.
According to a study conducted by the American Diabetes affiliation, which was published in the medical journal Diabetic Care in April 2013, the total economic cost of diagnosed diabetes in the United States for 2012 was a whopping $254 billion. This total amount, which is many times greater than the GDP of a number of countries, represents the direct and indirect costs buttociated with this disease.
This figure does not even include costs incurred for the purchase of over-the-counter medicines, dental-related requirements, prevention and research programs launched by different groups, administration costs of the government, and lost productivity for the worker's time-off in taking care of family members suffering from diabetes.
Direct costs for the year 2012 was placed at $176 billion or an increase of over 50 percent from five years ago when a similar study was made by the affiliation. Included in this category are hospital and related facilities expenses, emergency care, prescription medications, physician services, out-patient care, and personal expenditures. It was revealed that the bulk of these expenses were for diabetes cases with complications, which were two to eight times higher than those considered as controlled diabetes.
While the rise in the costs of medicines and doctor's services may partly explain this enormous increase, the main reason attributed by the authors of the study was the equally huge increase in the prevalence of diabetes. From 2007 to 2012, diabetes affliction among Americans increased by 27 percent or roughly six million people.
Compared to 2007, the indirect costs of diabetes for 2012 saw an increase of $11 billion from $58 billion to $69 billion. The biggest costs identified were unemployment due to diabetes-related disability, reduced productivity at work, and lost productive capacity due to early death. Other contributors for the indirect economic burden were increased absenteeism and reduced productivity for those not in the labor force.
It might appear that it is the individual diagnosed with diabetes and his family who may be greatly affected by this economic burden due to reduced earning potential, limited employment opportunities, and higher outlay for medical requirements. But in reality, the effect of this economic burden extends to employers, government, and ultimately society.
Performance of businesses may fall considerably due to absenteeism or reduced productivity of employees. In addition, employers may be incurring more expenses for insurance coverage for its workers. Government will be compelled to allocate a bigger portion of their budget for insurance needs and at the same time will experience lower productivity from companies contributing to the overall economic performance of the country.
In the end, it will be society who will be burdened with higher taxes and insurance premiums, reduced earning capacity, and a declining standard of living. This downside domino effect underscores the importance of addressing this problem plaguing the country. And to do this, everyone -- from the worker, employer, and government -- must do their respective share.
According to a study conducted by the American Diabetes affiliation, which was published in the medical journal Diabetic Care in April 2013, the total economic cost of diagnosed diabetes in the United States for 2012 was a whopping $254 billion. This total amount, which is many times greater than the GDP of a number of countries, represents the direct and indirect costs buttociated with this disease.
This figure does not even include costs incurred for the purchase of over-the-counter medicines, dental-related requirements, prevention and research programs launched by different groups, administration costs of the government, and lost productivity for the worker's time-off in taking care of family members suffering from diabetes.
Direct costs for the year 2012 was placed at $176 billion or an increase of over 50 percent from five years ago when a similar study was made by the affiliation. Included in this category are hospital and related facilities expenses, emergency care, prescription medications, physician services, out-patient care, and personal expenditures. It was revealed that the bulk of these expenses were for diabetes cases with complications, which were two to eight times higher than those considered as controlled diabetes.
While the rise in the costs of medicines and doctor's services may partly explain this enormous increase, the main reason attributed by the authors of the study was the equally huge increase in the prevalence of diabetes. From 2007 to 2012, diabetes affliction among Americans increased by 27 percent or roughly six million people.
Compared to 2007, the indirect costs of diabetes for 2012 saw an increase of $11 billion from $58 billion to $69 billion. The biggest costs identified were unemployment due to diabetes-related disability, reduced productivity at work, and lost productive capacity due to early death. Other contributors for the indirect economic burden were increased absenteeism and reduced productivity for those not in the labor force.
It might appear that it is the individual diagnosed with diabetes and his family who may be greatly affected by this economic burden due to reduced earning potential, limited employment opportunities, and higher outlay for medical requirements. But in reality, the effect of this economic burden extends to employers, government, and ultimately society.
Performance of businesses may fall considerably due to absenteeism or reduced productivity of employees. In addition, employers may be incurring more expenses for insurance coverage for its workers. Government will be compelled to allocate a bigger portion of their budget for insurance needs and at the same time will experience lower productivity from companies contributing to the overall economic performance of the country.
In the end, it will be society who will be burdened with higher taxes and insurance premiums, reduced earning capacity, and a declining standard of living. This downside domino effect underscores the importance of addressing this problem plaguing the country. And to do this, everyone -- from the worker, employer, and government -- must do their respective share.
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