How new tech, treatments impact diabetes costs

According to the “Economic Cost of Diabetes” study by the American Diabetes Association (ADA), the total estimated cost of diagnosed diabetes in the United States is $245 billion, including $176 billion in direct medical costs and $69 billion in reduced productivity. Individuals with diagnosed diabetes incur an average in medical expenditures of about $13,700 per year, of which about $7,900 is attributed to diabetes. Individuals with diagnosed diabetes, on average, have medical expenditures approximately 2.3 times higher than what expenditures would be in the absence of diabetes.

Given this, Managed Healthcare Executive asked Andrew S. Rhinehart, MD, chief medical officer, Glytec, Greenville, South Carolina, and Jay LaBine, MD, chief medical officer, Priority Health, Grand Rapids, Michigan, how new treatments, technologies, and services might help reduce costs and improve the quality of care for diabetes patients.

Managed Healthcare Executive (MHE): How might emerging new treatments for diabetes improve the quality of care while reducing the costs of care?

RhinehartRhinehart: Scores of data show that improved glycemic control reduces the overall cost of care for people with diabetes. The cost of prescription medications and diabetes supplies accounts for merely 12% of the $245 billion spent annually. The majority of costs come from treating diabetes related to hospitalizations, complications, and indirect costs (i.e., increased absenteeism and reduced productivity while at work, reduced productivity for those not in the labor force, inability to work as a result of disease-related disability, and lost productive capacity due to early mortality). Preventing these complications, improving patients’ lives, and keeping individuals with diabetes healthier with the use of the newest and best therapies should in turn lower costs.

 

MHE: How can new technology impact costs and quality for diabetic patients?

LaBineLaBine: Smart devices offer many benefits to individuals who are responsible for consistent self monitoring. Utilizing technology such as phone and computer apps that log blood sugar and foods consumed, smart pumps that give insulin as the body needs it, and text and e-mail reminders to test or take medications will make it easier for diabetic patients to control and maintain their disease.

Rhinehart: By using today’s technologies, large amounts of data can be collected. Moving forward, providers need to better capitalize on this large data set by gleaning actionable insights through the use of predictive analytics and decision support software to assist with medication dosing.

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