The costs related to treating diabetes continue to rise, driven primarily by increased prevalence of diabetes among older adults and rising costs of care. Co-morbidities like high blood pressure, obesity and hyperlipidemia, and the complications of non-compliance and non-adherence also drive up the overall cost of care.6
Using data from the Kaiser Family Foundation, the American Diabetes Association’s (ADA) cost calculator estimates that for a company with 1,000 employees:7
- 120 employees have diabetes
- 34 are undiagnosed
- 370 have prediabetes
- $4 million is the average annual insurance cost for employees with diabetes and prediabetes
- $751,682 is the annual increased cost if 25% of employees with prediabetes develop diabetes
Medical expenses for an individual with diabetes are about 2.3 times higher than a person without diabetes. But this is just the tip of the iceberg3.
More than 20% of people with diabetes (around 7 million) are undiagnosed and many others do not adhere to their treatment plans, meaning there are even greater expenditures related to the direct and indirect costs that come with complications and co-morbidities.1
Diabetes has a significant economic impact on employers and employees alike. Yet an employer survey conducted by MBGH showed that 79% of employers do not track the direct or indirect costs of diabetes care. Making a case for implementing a diabetes management program in the workplace starts with knowing what diabetes costs your company.
Click here to see how diabetes impacts the personal health care spending of employees.