One of Every Eight Federal Health Care Dollars - $80 Billion - Goes to Provide Care for People With Diabetes, New Study Shows

WASHINGTON, June 19 /PRNewswire-USNewswire/ -- One out of every eight federal health care dollars is spent treating people with diabetes, according to a study released today by the National Changing Diabetes(SM) Program (NCDP) and conducted by Mathematica Policy Research, Inc. The study was released at a briefing on Capitol Hill with the Congressional Diabetes Caucus.

The study, based on federal spending data from FY 2005, is the first of its kind to look at all federally-funded programs that have an impact on diabetes prevention and treatment. The study found that it costs the federal government nearly $80 billion ($79.7) more to treat people with diabetes than those without the disease. This represents 12 percent of $645 billion in total federal health care spending, the official total for federal health care spending projected that year. Virtually every department in the federal government -- 18 out of 21 -- has some level of spending that impacts diabetes, however, the study found a serious lack of coordination across the various agencies and programs.

"We are spending as much on diabetes as we are on the entire Department of Education, but no one is leading the effort. The staggering cost of treating diabetes and the number of diabetes-related programs highlight a need for a National Changing Diabetes Coordinator to ensure results," said Dana Haza, senior director of the National Changing Diabetes(SM) Program (NCDP). NCDP was created and funded by Novo Nordisk to mobilize the nation to improve diabetes prevention and treatment.

Since 1980, the number of Americans suffering from diabetes has doubled to more than 20 million, and that number is projected to double again by 2025. Diabetes has serious complications that are largely preventable with proper management and treatment. They include heart disease, high blood pressure, stroke, blindness, amputation and renal disease. Prevention efforts such as proper nutrition and physical activity are most effective with type 2 diabetes, the most common form of diabetes. According to the study findings, the government spends $4 billion on disease prevention and health promotion programs that could help prevent diabetes, only one twentieth the amount spent on treatment.

"Our findings suggest that there are many missed opportunities for the federal government to enhance its impact on diabetes prevention, detection, treatment and management of complications," said Mathematica Policy Research Inc.'s Marsha Gold, who led the research team.

As part of their efforts to enhance interdepartmental coordination, diabetes advocates are calling on Congress and President Bush to explore, in consultation with the diabetes health care community, the need for establishing a National Changing Diabetes Coordinator to provide federal leadership in aligning efforts across all federal agencies with diabetes related responsibility. Consideration should also be given to strengthening existing committees for example, the Diabetes Mellitus Interagency Coordinating Committee.

"Coordinating America's response to diabetes should be mandatory," said Lana Vukovljak, CEO, American Association of Diabetes Educators (AADE), who presented recommendations from diabetes advocates in response to the study. "Over the next 30 years, diabetes is expected to claim the lives of 62 million Americans. Surely this health crisis warrants the appointment of a manager charged with aligning budgets and programs for diabetes at the federal-level."

"These recommendations should serve as a wake up call for Congress to act," said Congressional Diabetes Caucus Co-Chair, Rep. Diana DeGette (D-CO). "The National Changing Diabetes Program shines a spotlight on diabetes prevention and management. Too many people face the challenge of managing this disease daily, and I look forward to coordinating our federal diabetes efforts."

Diabetes Caucus Co-Chair, Rep. Michael N. Castle (R-DE), praised the report for raising awareness about opportunities for federal leadership for diabetes, saying, "We are, in effect, the board of directors of the nation's largest health care purchaser, and we have a responsibility to ensure taxpayer dollars are spent effectively and with maximum impact. I have been an advocate of research and education for diabetes as well as measures that would save money and lives by preventing this devastating disease."

Novo Nordisk created NCDP and engaged the diabetes community as an expression of its commitment to changing diabetes. Through NCDP and other programs, the company is active in science, research, humanitarian, education and policy work around the world in an effort to change how diabetes is viewed, treated, and, ultimately defeated.

"Sixty-five percent of people with diabetes are not in acceptable control of their diabetes; we call for leadership and placing the highest sense of urgency on this disease in the United States," said Martin Soeters, President of Novo Nordisk. "We at Novo Nordisk are dedicated to helping to defeat diabetes and are proud of our heritage of more than 80 years in diabetes care."

With leadership and commitment from Novo Nordisk, NCDP works with the diabetes community, business, government, advocates, caregivers and patients to change the way patients and health care professionals think about diabetes and the way the disease is treated. The American Association of Clinical Endocrinologists (AACE) joined NCDP and the AADE in support of the study's recommendations.

  The study is available online at ncdp.com.

  About the National Changing Diabetes(SM) Program

The National Changing Diabetes(SM) Program (NCDP) is a multi-faceted initiative that brings together innovators in diabetes education, treatment and policy to improve the lives of people with diabetes. NCDP strives to create change in the U.S. health care system to provide dramatic improvement in the prevention and care of diabetes. Launched in 2005, NCDP is a program of Novo Nordisk. For more information, please visit http://www.ncdp.com/. Changing Diabetes is a service mark of Novo Nordisk A/S.

About Novo Nordisk

Novo Nordisk is a healthcare company with an 84-year history of innovation and achievement in diabetes care. The company has the broadest diabetes product portfolio in the industry, including the most advanced products within the area of insulin delivery systems. In addition to diabetes care, Novo Nordisk has a leading position within areas such as hemostasis management, growth hormone therapy, and hormone therapy for women. Novo Nordisk's business is driven by the Triple Bottom Line: a commitment to economic success, environmental soundness, and social responsibility to employees and customers. With headquarters in Denmark, Novo Nordisk employs more than 4,000 employees in 79 countries, and markets its products in 179 countries. Novo Nordisk's B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed on the New York Stock Exchange under the symbol 'NVO'. For global information, visit novonordisk.com; for United States information, visit novonordisk-us.com.

About Mathematica Policy Research, Inc.

Mathematica, a nonpartisan research firm, conducts policy research and surveys for federal and state governments, foundations and private-sector clients. The employee-owned company, with offices in Princeton, N.J., Washington, D.C., and Cambridge, Mass., has conducted some of the most important studies of education, health care, welfare, employment, nutrition and early childhood policies and programs in the U.S. Mathematica strives to improve public well-being by bringing the highest standards of quality, objectivity and excellence to bear on the provision of information collection and analysis to its clients.

Federal Spending Study Methodology

Estimates of federal diabetes spending (excluding tax effects) were compiled using two methods. The estimates are for fiscal year 2005, the latest year of detailed data available when the study was conducted (late 2005). First, traditional cost-of-illness methods were used to estimate the additional amount that the federal government spends to treat those with diabetes compared to those without. Through this analysis, the study found that it costs major federal health financing programs $77.2 billion more to treat those with diabetes than it would if these individuals cost the same amount as those without diabetes; another $2.5 billion was spent on diabetes- related federal disability payments. (The $77.2 billion is 12 percent (1 in 8 dollars) of an estimated $645.9 billion in CMS's projected total federal health care costs for 2005.)

Second, budget analysis techniques were used to estimate the total amount of federal spending for other diabetes-related purposes, including prevention and research. The latter estimates include both spending directly related to diabetes and other spending that is linked because of its influence on general risk factors for diabetes such as diet, nutrition, obesity and physical activity. This is the source of the estimated $4 billion the federal government spent on disease prevention and health promotion programs relevant to diabetes. Given the complexity of the federal budget, the estimates are intended to offer an overall picture of federal spending rather than an exact account of every dollar spent and how it is employed.