ABSTRACT

Diabetes is an incurable chronic disease characterised by high levels of blood glucose resulting in defects in insulin secretion, insulin action or both. There are two main types of diabetes. The most far-reaching study was reported by the Diabetes Control and Complication Trail Research Group and showed that an intensive approach to glycemic regulation resulted in lowering the risk of progression in Type 1 diabetes. Type 2 diabetes accounts for 90–95 per cent of all diagnosed cases of diabetes in the United States. Most direct costs of diabetes in the United States are attributable to inpatient or hospitalisation care, outpatient service and nursing home care. Forecasting costs in health care through economic models has been accomplished primarily through national and state databases in which the disease model provides the framework for the cost model. Predictive models that use health indicators for risk identification and quantification such as the one described will engender new ethical, legal and policy ramifications.