Diabetes is a disease caused by high blood sugar. The medical problems that result from it are very serious. They can also be costly for businesses that insure people with diabetes.
The Centers for Disease Control and Prevention have put together some data on diabetes. The number of diabetics in the United States has grown to nearly 26 million. That's a 10 percent rise in just two years. It also reported that more than 79 million U.S. adults are pre-diabetic. This means they are likely to develop the disease in the future. That number is 33 percent higher that it was two years ago.
Diabetes in America is rising because Americans are getting older and more obese. Obesity is now an epidemic. Two-thirds of the U.S. population is either overweight or obese. In addition, the average age of the U.S. population is rising.
So, how does this affect employers?
The short answer is it may cost employers more money. Healthcare costs for people with diabetes is 230 percent more than for people who don't have it. This fact comes from the American Diabetes Association. U.S. employers will pay a big part of the financial costs.
The American Diabetes Association did a study titled, "Economic Costs of Diabetes in the U.S." It listed these facts on the cost of diabetes:
- One of every five healthcare dollars is spent caring for someone with diabetes.
- People with diabetes face medical costs that are 2.3 times higher than people with other chronic diseases.
- They have more frequent and longer hospital stays. They have more doctor and emergency visits. They have more nursing facility stays and more home health visits.
- They use more prescription medicine and medical supplies.
Add to this the costs of the hidden diabetes epidemic. There's $18 billion for the estimated 6.3 million people with undiagnosed diabetes. There's another $25 billion for the one in four American adults with pre-diabetes. They are likely to develop Type 2 diabetes within 10 years. If the trend continues, one in three children face a life with diabetes.
The study states that the burden of diabetes affects all sectors of society. The result is higher insurance premiums paid by employees and employers. There is also the impact of reduced earnings through productivity loss.
Why is care for diabetes so expensive?
The medical care needed to treat diabetes is expensive. And the medical problems diabetes causes are serious and expensive to treat. These problems include heart disease, kidney disease, eye disease, nerve disease, and other conditions.
What can employers do to address this issue?
Lowering the cost of diabetes will take a three-pronged approach. The steps include screening, prevention, and disease management. But here's good news for employers. All the tools you need are available.
Screening
Almost 30 percent of people with diabetes don't know they have it. This fact comes from National HealthCare Reform magazine. So, screening for diabetes is vital to identify this large group. Screening also finds the much larger number of people with pre-diabetes.
Employers can screen their entire employee group for diabetes easily and inexpensively. All it takes is a simple blood test with finger stick.
Prevention
Lifestyle coaching can help workers lose weight. By lowering their weight, people with pre-diabetes are more likely not to develop diabetes. This good news comes from a study in the New England Journal of Medicine. The study showed that even a small seven percent weight loss helps prevent diabetes.
Disease Management
People with diabetes who don't control their blood sugar well or who don't have regular care are most in danger. Their lack of care leads to a higher risk of related problems and higher healthcare costs. Several key diabetes studies have shown that good disease management intervention can help. It greatly improves the health of people with diabetes, and lowers health claims from those in the program.
Lifestyle-related illnesses are a big part of healthcare costs. These illnesses include such conditions as obesity, hypertension, and Type 2 diabetes. The American Diabetes Association puts the direct medical cost of diabetes alone at $116 billion. They add another $58 billion for indirect costs. These costs include more days that employees are absent, and reduced productivity.
Most employers know how important the issue is. There are many ways companies and their diabetes vendors can help manage costs. But many business leaders don't know where to begin.
Here are three steps employers can take to find out how much diabetes affects costs. And, to learn the diabetes risks your employees face.
- Estimate the number of people with diabetes and pre-diabetes among your workers and the costs they add.
- Study your company's current employer and vendor programs, participation, and health-related outcomes. Compare your data to the data from companies who use best practice protocols.
- Use this information to find areas of opportunity for future savings.
Employers have the power to make big changes. You can create programs, incentives, education, and support to help your employees with diabetes and pre-diabetes. You can help employees control their diabetes better. As a result, you can help lower the costs of problems that result from diabetes.
Now is the time to act!
