An aging population and the increased incidence of diabetes will have a major impact on Medicaid programs.

Diabetes today has a significant impact on the healthcare system. In fact, one out of every ten U.S. health dollars is presently spent on diabetes. This trend is likely to continue as the prevalence of diabetes increases dramatically with age. More than five times as many people between the ages of 45 and 64 have diabetes compared to those aged 18 to 44. Over the next decade the proportion of the American population between the ages of 18 and 44 will decline by 7 percent while the aged 45 to 64 proportion will increase 15 percent. This means that if current rates of diabetes prevalence continue over the next decade there will be an enormous increase in the number of Americans suffering from diabetes.
 

Those with diabetes make over 15 million physician visits per year and are responsible for 3 million days of hospitalizations annually. Thirty five percent of the population with diabetes has an income of less than $20,000 per year and many rely on Medicaid programs for prescription drugs and their other health care needs.
Policy changes that focus on containing Medicaid drug costs such as increased co-payments of prescription limits have a profound impact on low-income Americans with diabetes. Substantial proportions of people with chronic conditions such as diabetes take less than the prescribed amount of their medication because of cost. This often results in more emergency room visits, hospital admissions or physician visits. Ensuring access to effective new medicines to treat diabetes is an essential strategy in containing the overall costs of treating diabetes.