Financial Impact
Financial Impact of Type 1 Diabetes
The financial burden of type 1 diabetes (T1D) is staggering and often a source of great stress and anguish for patients and families. Prescription and doctor visit costs vary greatly depending on if the patient has health insurance and, if so, what carrier or plan they are covered under. Even with great health insurance plans, T1D patients face out-of-pocket costs ranging in the thousands of dollars each year. For those without health insurance, T1D can cost hundreds of thousands of dollars each year.
With 45% of the patients at the Barbara Davis Center for Diabetes (BDC) uninsured or underinsured and 35% of patients living at or below the poverty level, the cost of this disease can be crippling for BDC patients and families.
The Price of Type 1 Diabetes
What are the direct medical costs of T1D?
• On average, people with type 1 diabetes incur annual medical expenditures of $19,736, of which approximately $12,022 is attributable to T1D. People diagnosed with type 1 diabetes, on average, have medical expenditures 2.6 times higher than what would be expected without type 1 diabetes. Glucose-lowering medications and diabetes supplies account for about 17% of the total direct medical costs attributable to diabetes. (Source: Economic Costs of Diabetes in the U.S. in 2022)
• A model that compared over 1.6 million patients with T1D to an equal number of patients without found that the difference in lifetime costs was $813 billion. (Source: Estimated Lifetime Economic Burden of Type 1 Diabetes)
• The median costs per diabetes-related hospitalization ranged from $6,548 to $8,439. (Source: Healthcare resource utilization and cost among patients with type 1 diabetes in the United States)
What are the other costs of T1D?
1. Lost Productivity: Managing T1D requires significant time and effort, which can affect productivity. Children with T1D may miss school, and adults may need time off work for medical appointments or due to complications.
2. Long-Term Complications: T1D can lead to complications such as cardiovascular disease, kidney disease, neuropathy, and retinopathy. Managing these conditions adds to the overall financial burden, with costs increasing significantly as complications arise.
3. Insurance Premiums and Out-of-Pocket Expenses: Even with health insurance, the out-of-pocket expenses for managing T1D can be substantial. High deductibles, co-pays, and coverage limitations can lead to thousands of dollars in annual costs.
How can these costs be mitigated?
1. Advocacy for Affordable Insulin: There is a growing movement to make insulin more affordable. Advocacy efforts aim to reduce the cost of insulin and improve access for all individuals with T1D.
2. Innovative Insurance Models: Some insurance companies are exploring new models that provide better coverage for chronic conditions like T1D, reducing out-of-pocket costs for patients.
3. Government Programs and Assistance: Government programs and non-profit organizations offer financial assistance to help cover the costs of diabetes management. These programs are crucial in supporting low-income individuals and families.
4. Technological Advancements: Innovations in diabetes technology, such as more affordable CGMs and insulin pumps, as well as improved algorithms for managing blood glucose levels, can help reduce the overall financial burden.
The financial impact of type 1 diabetes is significant and multifaceted, affecting individuals, families, healthcare systems, and society at large. By understanding these costs and advocating for changes in healthcare policy and support systems, we can work towards reducing the financial strain and improving the quality of life for those living with T1D.
Want to make a difference and help ease the financial burden of type 1 diabetes?
