Impact of a Digital Diabetes Program on Medical Costs and Diabetes Complications
PUBLICATION DATE: June 4, 2022
Digital DSMES program outcomes can lead to significant reductions in long term diabetes complications and health costs.
Can virtual diabetes management programs (Diabetes Self-Management Education and Support, or DSMES) improve health and save on medical costs? We know uncontrolled diabetes can progress over time, and that technology-enabled DSMES can scale in ways that in-person DSMES can’t. Rather than waiting for real life results over 10 years, we used a Markov-based microsimulation to calculate the economic savings and health impact of a digitally enhanced DSMES program for type 2 diabetes.
HOW WE DID IT
We examined the differences in BMI and glycated hemoglobin (A1C) from baseline to 4 to 6 months after participating in the Omada for Diabetes program. Then, we modeled how each individual’s disease would progress over time with and without the improvements in BMI and A1C. Coupled with data from a national claims database, we were able to project healthcare savings over the course of 10 years in light of the reduced risk for diabetes complications.
WHAT WE FOUND
The primary simulated outcomes of this study were an expected 9% to 16% reduction in the 5-year incidence of diabetes complications, and cumulative gross savings of $1,160 after year one, $4,150 after 3 years, $7,790 after 5 years and $18,020 after 10 years.
WHAT OUTCOMES LIKE THIS CAN MEAN FOR YOUR ORGANIZATION / HEALTH PLAN:
Omada for Diabetes measurably improves health markers in a population with type 2 diabetes, thus significantly slowing diabetes progression and reducing associated medical expenditures.
Cost of Diabetes: The total estimated cost of diagnosed diabetes in 2017 is $327 billion, including $237 billion in direct medical costs and $90 billion in reduced productivity.