When you think of Type 2 diabetes, it’s often viewed as a personal health issue. But the reality is, it has a far-reaching impact that extends beyond individual health—it also affects the workplace in big ways. With over 38 million Americans living with diabetes, and about 90% to 95% diagnosed with Type 2, this chronic condition is becoming a growing concern for employers (CDC, 2024).
While the direct medical expenses are significant, the less obvious costs—such as reduced productivity, absenteeism, and even team dynamics—can have a huge impact on business outcomes. That’s why understanding and managing diabetes in your workforce is more than just a health initiative; it’s a smart strategy for protecting your bottom line.
Direct Costs of Type 2 Diabetes
Diabetes is one of the most expensive chronic conditions in the U.S. In 2022 alone, the total estimated cost of diagnosed diabetes reached $412.9 billion, with $306.6 billion attributed to direct medical expenses (National Library of Medicine, 2024). These costs include medications, doctor visits, and hospitalizations, all of which contribute to increased insurance premiums and claims for employers.
In fact, people with diagnosed diabetes have medical expenditures that are 2.6 times higher than individuals without diabetes (American Diabetes Association, 2023). For employers, this means significantly higher expenses to cover and the potential for greater financial strain on their benefits plans.
Indirect Costs of Type 2 Diabetes
In addition to direct medical expenses, Type 2 diabetes leads to substantial indirect costs, accounting for $106.3 billion annually. These costs stem from absenteeism, presenteeism, and lost productivity due to disability and premature mortality (American Diabetes Association, 2023). Presenteeism, or reduced productivity while at work due to managing symptoms, results in $35.8 billion in annual losses, while absenteeism adds another $5.4 billion (American Diabetes Association, 2023).
It’s not just the financial costs—managing diabetes can affect how employees feel and perform at work, potentially impacting their mental health and overall job satisfaction. Employees struggling to manage their condition may experience frequent fatigue, difficulty concentrating, or the need to take time off for medical appointments, disrupting workflow and burdening team members. And when team members have to pick up the slack, it can lead to burnout and a hit to team morale.
A Real-World Example: What Happens When Companies Take Action?
To show the positive impact that proactive diabetes management can have, let’s look at a case study conducted by CareATC. CareATC’s Diabetes Management Program helped 71% of participants improve their A1C levels in just one year, which translated into nearly $1 million in savings. This demonstrates that when employees are supported in managing their health, everyone wins—employees feel better, and employers see a positive shift in their healthcare costs.
What Can Employers Do to Address Diabetes in the Workplace?
Successfully managing the impact of diabetes at work doesn’t have to be complicated. Employers can implement wellness programs that include regular health screenings, health coaching, and educational resources to support employees in managing their condition. Programs like CareATC’s Diabetes Management Program can help reduce absenteeism and presenteeism while improving employees’ quality of life.
Taking a proactive approach isn’t just about boosting employee health—it’s about protecting your business. If individuals with diabetes participated in the workforce at the same rate as those without diabetes, an additional 2 million people could be added to the working-age population (American Diabetes Association, 2023). That’s a major opportunity for growth and stability in the workforce. When you support your team, they’re more engaged, more productive, and more likely to stick around for the long haul.
References
American Diabetes Association. (2023, November 1). New American Diabetes Association Report Finds Annual Costs of Diabetes to be $412.9 Billion. https://diabetes.org/newsroom/press-releases/new-american-diabetes-association-report-finds-annual-costs-diabetes-be
CDC. (2024, May 15). Type 2 Diabetes. https://www.cdc.gov/diabetes/about/about-type-2-diabetes.html#:~:text=Overview,adults%20are%20also%20developing%20it.
National Library of Medicine. (2024, January 1). Economic Costs of Diabetes in the U.S. in 2022. https://pubmed.ncbi.nlm.nih.gov/37909353/
