Diabetes: Australian facts

How much is spent on diabetes?

Of the $3.1 billion health system expenditure attributed to diabetes in 2019–20, an estimated:

• $323.7 million was attributed to type 1 diabetes.
• $2.0 billion was attributed to type 2 diabetes.
• $63.6 million was attributed to gestational diabetes.
• $767.1 million was attributed to ‘other/unknown’ diabetes (AIHW 2021).

Note: Due to the high number of ‘other/unknown’ diabetes caution should be used when interpreting data by diabetes type.

Where is the money spent?

In 2019–20, 39% ($1.2 billion) of total health system expenditure attributed to diabetes was for hospital services. This included expenditure on public hospital admitted patients ($758.0 million), public hospital outpatients ($374.2 million), private hospital services ($86.4 million), and public hospital emergency departments ($20.4 million). Medications dispensed through the Pharmaceutical Benefits Scheme (PBS) was the single highest area of spending with just over a quarter of total diabetes expenditure ($827.7 million) (Figure 1).

Figure 1: Health care expenditure on diabetes, by diabetes type and area of expenditure, 2019–20

Who is the money spent on?   

The health system expenditure attributed to all diabetes varies significantly according to age and sex.

In 2019–20:

• total disease expenditure was about 1.3 times as high in males compared with females ($1.5 billion and $1.2 billion, respectively).
• total diabetes expenditure generally increased with increasing age with 63% being spent on people aged 55 and over and peaking in the 70–74 age group at $387.4 million (Figure 2).   

Figure 2: Health care expenditure on diabetes (all areas), by diabetes type, age and sex, 2019–20

Type 1 diabetes

Where is the money spent?

In 2019–20, 47% of allocated type 1 diabetes expenditure ($152.1 million) was spent on hospital services. This included expenditure on public hospital admitted patients ($96.6 million), private hospital services ($9.0 million), public hospital outpatients ($42.6 million) and public hospital emergency departments ($3.9 million).

Another 30% of expenditure ($96.7 million) related to medications dispensed through the PBS and 11% to dental services ($35.5 million).

The remaining 12% ($39.4 million) of expenditure was related to non-hospital medical services (primary care), comprising general practitioner (GP) services ($18.5 million), specialist services ($9.3 million), medical imaging ($1.1 million), pathology ($8.2 million) and allied health and other services ($2.3 million) (Figure 1).

Who is the money spent on?

The economic burden attributed to type 1 diabetes varies significantly according to age, sex and area of expenditure. In 2019–20:

• total disease expenditure was higher for males than females ($151.6 million and $135.6 million, respectively).
• expenditure on medical imaging, PBS items and public hospital outpatients was 1.3 times higher for males as females while expenditure on medications dispensed through the PBS and specialist services were 1.2 times as high for males compared with females.
• expenditure for females with type 1 diabetes was highest in those aged 30–34 ($11.9 million). Notably, this expenditure is 1.5 times as high for males aged 30–34 ($8.2 million). Expenditure for males with type 1 diabetes was highest in those aged 60–64 ($13.7 million) (Figure 2).

Type 2 diabetes

Where is the money spent?

In 2019–20, 29% ($575.2 million) of type 2 diabetes expenditure was spent on medications dispensed through the PBS and 14% on dental programs and services ($286.4 million).

Hospital services accounted for 42% (838.5 million) of the expenditure allocated to type 2 diabetes. This included expenditure on public hospital admitted patients ($605.0 million), private hospital services ($75.9 million), public hospital outpatients ($155.1 million) and public hospital emergency departments ($2.5 million).

The remaining 15% ($293.6 million) of expenditure was attributed to GP services ($144.3 million), specialist services ($36.8 million), medical imaging ($2.1 million), pathology ($86.4 million) and allied health and other services ($24.0 million) (Figure 1).

Who is the money spent on?   

The health system expenditure attributed to type 2 diabetes varies substantially according to age, sex and area of expenditure. In 2019–20:

• total disease expenditure was 1.4 times as high in males compared with females ($1.0 billion and $697.4 million, for males and females, respectively). 
• total disease expenditure for persons with type 2 diabetes generally increased with increasing age, with more than 70% attributed to people aged 60 and over. The expenditure was highest amng those aged 70–74 for both males and females ($169.6 million and $103.4 million, respectively) (Figure 2).

Gestational diabetes

Where is the money spent?

In 2019–20, 84% ($53.4 million) of the health system expenditure for gestational diabetes was attributed to hospital services including $37.5 million of which was spent on public hospital admitted patients, $15.2 million on public hospital outpatients, $585,000 on private hospital services and $4,400 on public hospital emergency department presentations.

The remaining 16% ($10.2 million) of expenditure was related to allied health and other services ($723,000), general practitioner services ($1.8 million), medical imaging ($25,000), pathology ($1.1 million), medications dispensed through the PBS ($26,000) and specialist services ($6.6 million) (Figure 1).

Who is the money spent on?

The health system expenditure attributed to gestational varied with age. 

In 2019–20:

• women aged 30–34 accounted for almost one-third of health system expenditure attributed to gestational diabetes
• expenditure attributed to specialist services was nearly 1.4 times as high in women aged 35–39, compared with those aged 30–34 ($2.6 million and $1.9 million, respectively) (AIHW 2022).

Further detail by demographics and area of expenditure is available in the Disease expenditure in Australia 2018–19: data tables.

Aboriginal and Torres Strait Islander People

In 2015–16, expenditure on potentially preventable hospitalisations (PPH) was 2.2 times as high in Aboriginal nad Torres Strait Islander people compared with non-Indigenous Australians ($392 and $176, respectively). Notably, the greatest difference in expenditure is attributed to diabetes, a gap of $33 per person (AIHW and NIAA 2020).

References

Australian Institute of Health and Welfare (2022) Disease expenditure in Australia 2019–20, AIHW, Australian Government, accessed 13 April 2023.

AIHW and NIAA (National Indigenous Australians Agency) (2020) 3.21 Expenditure on Aboriginal and Torres Strait Islander health compared to need - AIHW Indigenous HPF,  AIHW and NIAA, Australian Government, accessed 24 March 2022.