Research paper Outline

Running head: IMPACT OF DIABETES ON HEALTHCARE COSTS 1

IMPACT OF DIABETES ON HEALTHCARE COSTS 6

Impact of Diabetes on Healthcare Cost

Student’s Name

Institutional Affiliation

Impact of Diabetes on Healthcare Cost

I. Introduction

Health care is a critical aspect that must have the attention of the involved management body to realize its full function. Governments have to allocate adequate resources to health care institutions for them to be able to provide healthcare services. Diabetes is one of the common diseases that affect people in the health care system. Rising health care costs are making it difficult for the general public to get proper health care services others do not get it at all. According to Giorda (2011), costs associated with diabetes-related complications represent the highest health expenditure and are higher than the costs of managing diabetes itself. The purpose of this paper is to outline the effects of diabetes on healthcare costs.

II. Body

A. An overview of the issue

Diabetes is an increasing chronic disease that has a great impact on clinical effects and causes an economic burden across the world. Expenditures due to diabetes are involved in direct and indirect costs. The type of diabetes and the complications accompanied determine the expenditure on diabetes.

B. Why is this issue a concern from a health care economics perspective?

The health care expenditure to manage diabetes and its related complications are increasing every year. American Diabetes Association (ADA) reported in 2017 an increase and remarkable magnitude of the total direct costs of diabetes in the U.S. $116 billion in 207, $176 billion in 2012, and $ 237 billion in 2017 (Riddle and Herman, 2018). This shows the effects of the high expenditure on diabetes on the economy.

C. Who are the major parties involved in this issue?

The impact caused by diabetes on health care affects the affected individual and their families, and it affects the health care institutions and the government. The government is expected to provide health care support and resources. Healthcare institutions should provide health care services to treat and manage diabetes. Individual and their families have to have money to seek the proper health services in a health institution.

D. Which market forces have an impact on this issue?

Economic factors accelerate the impact of diabetes on health care. Currently, the innovation of new technology in diabetes treatment causes an increased cost of treatment. Lessing et al. (2019) affirm that economic factors such as development in technology have benefits in managing the disease better and demerits of the increased cost of treatment. These market factors determine the cost of diabetes in various parts of the world.

E. How is demand illustrated in this issue?

Currently, a large population is being diagnosed with diabetes making the demand for its treatment high. Consequently, treatment equipment and medications demand to increase to satisfy the large population in need of the medications. Alva et al. (2017) assert that the increase in diabetes has an increased factor of up to 4 for the last year indicating a high demand to manage diabetes.

F. How is supply illustrated in this issue?

Supply in this issue is dealing with the availability of medication and medical equipment. Due to the high demand, the supply is being overwhelmed to meet the demand levels thus some patients receive inadequate medication others receive none. The scarcity of the supply makes the price of treating diabetes to inflate.

G. How has the affordable care act impacted this issue?

Due to the increased impact caused by diabetes, the government decides to enact a law to offer affordable health care services to all people equally. Griffith et al. (2017) affirm that government intervenes in health programs to provide coverage for the same essential medical services and ensures health care is available to all.

H. How are health disparities demonstrated in this issue?

Health differences are very evident in these issues where the wealthy will be able to afford first-class services and the poor will have close to none. Poor management of the health system by the government causes these disparities to have a huge gap. Thus, a government should intervene to ensure all its citizens can get affordable health care. Social economics has a significant contribution to health services disparities.

I. How has this issue been improved in other global markets?

Global markets are developing measures to promote the prevention of this disease and create robust strategies to manage it from a personal level. Diabetes is managed by having a proper diet, therefore making awareness promotion of the disease and advising people on the best prevention and control measures have been the initiative for the global markets.

J. What is your recommendation for making improvements based on economic principles?

Diabetes has significant effects on the economy of a country. To reduce the impact, prevention measure is advocated by making the public aware of the diseases, its causes, prevention, and treatment measures. People should be encouraged to know their status regarding this disease instead of waiting when it has adverse effects accompanied by serious complications. This will help to control the disease at an early level and reduce its repercussions.

III. Conclusion

In conclusion, diabetes impacts on health care can be reduced significantly with proper management, public health awareness on prevention measures and control, and affordable health act being enacted to help provide health services to all.

References

Alva, M. L., Samuel-Hodge, C. D., Porterfield, D., Thomas, T., & Leeman, J. (2017). Peer-Reviewed: A Feasibility Study of Supply and Demand for Diabetes Prevention Programs in North Carolina. Preventing chronic disease, 14.

Giorda, C. B., Manicardi, V., & Diago Cabezudo, J. (2011). The impact of diabetes mellitus on healthcare costs in Italy. Expert review of pharmacoeconomics & outcomes research, 11(6), 709-719.

Griffith, K., Evans, L., & Bor, J. (2017). The Affordable Care Act reduced socioeconomic disparities in health care access. Health Affairs, 36(8), 1503-1510.

Lessing, S. E., & Hayman, L. L. (2019). Diabetes Care and Management Using Electronic Medical Records: A Systematic Review. Journal of diabetes science and technology, 13(4), 774-782.

Riddle, M. C., & Herman, W. H. (2018). The cost of diabetes care—an elephant in the room. Diabetes Care, 41(5), 929-932.