Trends in Medical Expenditures Prior to Diabetes Diagnosis: The Early Burden of Diabetes

Diabetes is a costly chronic condition in the United States. The incremental increase in costs of the disease can begin and accelerate prior to first diagnosis. This study conducts a retrospective analysis of claims data from Truven Health MarketScan® Commercial Claims Database to track per capita annual medical expenditures among a single panel of commercially insured patients for 5 years preceding a new diabetes diagnosis. Case subjects, defined as individuals newly diagnosed with diabetes in 2014, are compared to control subjects, defined as individuals who do not have a diabetes diagnosis. Arithmetic means, compound annual growth rates, and propensity score matching models are used to track the differential in expenditures across health care sectors. This analysis finds that the incremental rise in costs of diabetes are shown to begin at least 5 years before diagnosis of the disease and accelerate immediately after diagnosis. Results of the matching model suggest that the newly diagnosed case subjects spent $8941 more than control subjects not diagnosed with diabetes over the span of 5 years, with approximately $4828 in the year of diagnosis. The compounded annual growth rate in per capita annual medical expenditures between 2010-2014 was almost 9% higher among case subjects at 14.3% in the matched models. Results show that the rise in medical spending associated with diabetes begins well in advance of the first diabetes diagnosis and support the need to encourage physicians to implement timely identification and prevention efforts to reduce the economic burden of the disease.