Global Insight Perspective | |
Significance | The costs include both direct medical care and indirect costs. Type 1 and 2 diabetes patients in 2007 accounted for the majority of the total diabetes spend at US$174.4 billion. |
Implications | The study was sponsored by insulin maker Novo Nordisk. The cost estimates are in line with expectations of higher spend in the therapeutic area with the number of incidences rising in the United States. |
Outlook | Diabetes treatments will come under review following the publication of this report, along with the Health Services Research Network's figures of higher medications prescribed per patient visits. While the estimates present a lucrative market for drugmakers, there will be increasing pressure to offer cheaper treatments going forward. |
A study conducted by the Lewin Group and sponsored by Novo Nordisk (Denmark) unveiled new estimates for the total spend related to diabetes in the United States. According to the News & Observer, an annual bill of US$218 billion is being attributed to diabetes-associated treatments for 2007. The estimates include all direct costs, including drugs and in-patient care, and indirect costs pertaining to lost productivity, disability, and early retirement, the source added. In terms of the split in the costs, Type 1 and Type 2 diabetes together accounted for the majority, with US$174.4 billion.
Other figures highlighted in the report include:
- Diabetes accounts for nearly half of cardiovascular treatments at US$448.5 billion in 2007.
- Interestingly, the study includes estimated costs related to non-diagnosed patients at US$18 billion, pregnant women with temporary diabetes, at US$636 million, and pre-diabetes patients at US$25 billion.
- Of the known diabetics, the cost split is as follows: US$10 billion in medical costs and US$4.4 billion in indirect costs for people with Type 1 diabetes. For Type 2 diabetics, the costs are: medical costs at US$105.7 billion; indirect costs at US$53.8 billion (source: News & Observer).
- The Health Services Research Network has said that the average increase in the number of diabetes medication prescribed per patient is up 43% to 1.63 in 13 years.
- 21 million children and adults are diabetic in the United States, and about six percent are said to be diagnosed with Type 1 diabetes (source: American Diabetes Association).
Outlook and Implications
The study reaffirms the potential for higher treatment costs associated with diabetes, particularly in the context of a growing incidence. It is significant to note that the Danish vaccine-maker Novo Nordisk has sponsored the study indicating a lucrative potential for diabetes treatment manufacturers in the United States in the ensuing years. The figures, taken from a variety of sources such as Medicare, Medicaid and commercial insurance, offer an estimate for non-diagnosed patients as well as other indirect costs that have so far remained out of the purview of the therapeutic segment's market estimations.
Drugmakers can expect a greater healthcare spending push towards diabetes following this report. Health insurers will also keenly observe the estimations provided in the report that represent potentially higher reimbursements attributed to diabetes. The interest is expected to trigger further potential investments in discovery research in this segment, particularly in Type 2 diabetes, which has emerged as the most common form. Along with the higher spend will be renewed pressure from regulators, as well as healthcare spenders, monitoring the price of treatments to offer a cheaper alternative. Generic drugs are expected to be encouraged to pursue this high value segment.
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