Medical Expenditure Panel Survey Agency for Healthcare 

Research and Quality

STATISTICAL BRIEF #146 

October 2006

Proportion and Medical Expenditures of 

Adults Being Treated for Diabetes, 1996 

and 2003 

Highlights 

 Between 1996 and 2003, 

the proportion of adults with 

at least one medical event 

for the treatment of diabetes

increased from 7.0 percent 

to 9.0 percent in the 45 to 64

age group and from 13.1 

percent to 15.8 percent in 

the 65 or older age group. 

 Between 1996 and 2003, the 

average constant dollar expenditure on all types of prescription medicines by adults

with at least one medical 

event for the treatment for 

diabetes increased 87.3 

percent in the 18 to 44 age 

group, 114.9 percent in the 

45 to 64 age group, and 61.4 

percent in the 65 or older 

age group. The average 

constant dollar expenditure 

for all types of office-based 

medical provider care increased 46.3 percent in the 

45 to 64 age group and 45.2 

percent in the age 65 or 

older age group. 

 The average constant dollar 

expenditure for prescription 

medicines to treat diabetes 

increased in all age groups 

between 1996 and 2003—

70.7 percent in the 18 to 44 

age group, 99.6 percent in 

the 45 to 64 age group, and 

74.2 percent in the 65 or 

older age group. In addition, 

the average constant dollar 

expenditure for hospital and 

physician care and prescription medicines to treat 

diabetes increased 73.0 

percent in the 65 or older 

age group.

Gary Olin, PhD 

Introduction 

Using data from the Household Component of the Medical Expenditure Panel Survey (MEPS-HC), this Statistical Brief provides

estimates on the changes between 1996 and 2003 in the proportion 

and medical expenditures of adults in the U.S. civilian noninstitutionalized population who had at least one medical event for the treatment of diabetes. The 1996 expenditures have been inflated to 2003

dollars for comparisons of the average quantity of health care services delivered to adults being treated for diabetes during these 

years. Only differences between estimates for the selected years 

that are statistically significant at the 0.05 level are discussed in the 

text. 

Findings 

Distribution and expenditure shares of diabetic adults 

Table 1 shows the percentage of adults in the U.S. civilian noninstitutionalized population with at least one medical event for the 

treatment of diabetes and its share of medical expenditures by all 

adults in the years 1996 and 2003. Between 1996 and 2003, the 

proportion of adults who were treated for diabetes increased 1.3 

percentage points (from 5.0 percent to 6.3 percent of all adults). The 

increase reflects change between the two years in the proportion of 

adults receiving treatment for diabetes in the 45 to 64 age group 

(from 7.0 percent to 9.0 percent) and the 65 or older age group (from 

13.1 percent to 15.8 percent). During this period, no significant 

change was noted in the share of total expenditures attributable to 

adults being treated for diabetes. Undiagnosed and untreated cases 

of diabetes are not reflected in these estimates. 

 

Medical expenditures of adults receiving care for diabetes 

Table 2 shows 1996 and 2003 average expenditures (in constant 

2003 dollars) for selected types of care among adults who had at 

least one medical event for the treatment of diabetes. The constant

dollar estimates of per capita expenditures on health care capture 

change in the average quantity of services delivered to diabetics for 

the treatment of diabetes, comorbidities of diabetes, and unrelated

conditions. Between the years 1996 and 2003, the average constant 

dollar expenditure on prescription medicines for all types of medical
problems increased 87.3 percent for adults age 18 to 44, 114.9 percent for adults age 45 to 64, and 61.4 

percent for adults age 65 or older. The average constant dollar expenditure for problems treated by 

office-based medical providers increased 46.3 percent for adults age 45 to 64 and 45.2 percent for adults 

age 65 or older. 

Medical expenditures for diabetes 

Table 3 shows 1996 and 2003 average expenditures (in constant 2003 dollars) of adults being treated for 

diabetes when the care was restricted to events where diabetes was identified as the reason or one of the 

reasons for the care. The average constant dollar expenditure for prescription medicines to treat diabetes 

increased 70.7 percent in the 18 to 44 age group, 99.6 percent in the 45 to 64 age group, and 74.2 

percent in the 65 or older age group between 1996 and 2003. In addition, the average constant dollar 

expenditure for hospital and physician care and prescription medicines to treat diabetes increased 73.0 

percent in the 65 or older age group. 

Data Source 

This Statistical Brief uses data from the 1996 and 2003 Full Year Consolidated Data Files (HC-012 

and HC-079) and the 1996 and 2003 event files for prescription medicines (HC-010A and HC-077A), 

inpatient hospital stays (HC-010D and HC-077D), emergency room visits (HC-010E and HC-077E), 

outpatient department visits (HC-010F and HC-077F), and office-based medical provider visits (HC-010G 

and HC-077G). These files are available on the MEPS Web site at http://www.meps.ahrq.gov/mepsweb/ 

data_stats/download_data_files.jsp. 

Definitions/Methodology 

Population 

The estimates provided in this Statistical Brief are for adults age 18 or older who lived in the community 

for all or part of the year. Anyone who reported having a medical event—hospital stay, outpatient 

department visit, emergency room visit, office visit, or prescription medicine purchase—for the treatment 

of diabetes mellitus (ICD-9 code 250) in 1996 or 2003 was counted as being treated for diabetes. 

Persons in the military and those residing in nursing homes or other institutions for the entire year are not 

included in the comparisons. 

Age 

Age is that of the sample person as of December 31st of the reported year. 

 

Expenditures 

The MEPS includes expenditures for eight types of medical events: hospital stays, emergency room 

visits, outpatient department visits, office-based medical provider visits, dental visits, home health care, 

other medical expenses, and prescription medicines. Expenditures for these events include all direct 

payments by individuals, private insurance (including TRICARE), Medicare, Medicaid, and other sources 

such as the Veterans’ Administration, Workers’ Compensation, and miscellaneous public sources to 

providers of the services. 

The 1996 per capita expenditures for all medical events were inflated to 2003 dollars using the Personal 

Health Care Expenditure (PHCE) price index published by the National Health Accounts, Office of the 

Actuary, Centers for Medicare and Medicaid Services (http://www.cms.hhs.gov/NationalHealth 

ExpendData/downloads/dsm-04.pdf). The 1996 per capita expenditures for selected categories of 

medical events (such as hospital care, office-based medical provider care, and prescription medicines) 

were inflated to 2003 dollars using the corresponding components of the PHCE price index. 

About MEPS-HC 

MEPS-HC is a nationally representative longitudinal survey that collects detailed information on health 

care utilization and expenditures, health insurance, and health status, as well as a wide variety of social, 

demographic, and economic characteristics for the civilian noninstitutionalized population. It is 

cosponsored by the Agency for Healthcare Research and Quality and the National Center for Health 

Statistics. 
For more information about MEPS, call the MEPS information coordinator at AHRQ (301-427-1656) or 

visit the MEPS Web site at http://www.meps.ahrq.gov/. 

References 

For a detailed description of the MEPS survey design, sample design, and methods used to minimize 

sources of nonsampling error, see the following publications: 

Cohen, J. Design and Methods of the Medical Expenditure Panel Survey Household Component. MEPS 

Methodology Report No. 1. AHCPR Pub. No. 97-0026. Rockville, Md.: Agency for Health Care Policy and 

Research, 1997. 

Cohen, S. Sample Design of the 1996 Medical Expenditure Panel Survey Household Component. MEPS 

Methodology Report No. 2. AHCPR Pub. No. 97-0027. Rockville, Md.: Agency for Health Care Policy and 

Research, 1997. 

Cohen, S. Design Strategies and Innovations in the Medical Expenditure Panel Survey. Medical Care,

July 2003: 41(7) Supplement: III-5–III-12. 

Suggested Citation 

Olin, G. Proportion and Medical Expenditures of Adults Being Treated for Diabetes, 1996 and 2003. 

Statistical Brief #146. October 2006. Agency for Healthcare Research and Quality, Rockville, Md. 

http://www.meps.ahrq.gov/mepsweb/data_files/publications/st146/stat146.pdf 

∗ ∗ ∗

AHRQ welcomes questions and comments from readers of this publication who are interested in 

obtaining more information about access, cost, use, financing, and quality of health care in the United 

States. We also invite you to tell us how you are using this Statistical Brief and other MEPS data and 

tools and to share suggestions on how MEPS products might be enhanced to further meet your needs. 

Please e-mail us at mepspd@ahrq.gov or send a letter to the address below: 

Steven B. Cohen, PhD, Director 

Center for Financing, Access, and Cost Trends 

Agency for Healthcare Research and Quality 

540 Gaither Road 

Rockville, MD 20850 
Table 1. Percentage of U.S. civilian nonstitutionalized adults being treated for diabetes and its 

share of medical expenditures by all adults, by age group, 1996 and 2003 

Adults receiving care for diabetes: 

Percent of population Percent of total expenditures 

Age group 1996 2003 1996 2003 

All adults 5.0 6.3 14.8 17.0 

 18 to 44 1.5 1.5 3.5 4.5 

 45 to 64 7.0 9.0 16.6 19.4 

 65 or older 13.1 15.8 22.7 24.4 

Source: Center for Financing, Access, and Cost Trends, Agency for Healthcare Research and Quality, Medical 

Expenditure Panel Survey, 1996 and 2003. 

Table 2. Average constant dollar expenditures of adults in the U.S. civilian noninstitutionalized 

population with at least one medical event for diabetes, by age group and type of expenditure, 

1996 and 2003

Age and type of expenditure Average expenditure (in 2003 dollars) Percent change 

1996 2003 1996 to 2003 

All adults 

 All medical care1 $8,942 $10,092 12.9 

 All hospital care2 $4,910 $4,804 (2.2) 

 All office care3 $1,027 $1,506 46.6 

 All prescription medicines4 $1,508 $2,798 85.5 

18-44 years old 

 All medical care1 $3,990 $6,128 53.6 

 All hospital care2 $1,876 $2,507 33.6 

 All office care3 $ 806 $1,171 45.3 

 All prescription medicines4 $1,120 $2,098 87.3 

45-64 years old 

 All medical care1 $8,122 $9,169 12.9 

 All hospital care2 $5,036 $4,165 (17.3) 

 All office care3 $1,017 $1,488 46.3 

 All prescription medicines4 $1,355 $2,912 114.9 

65 or older 

 All medical care1 $11,486 $12,238 6.6 

 All hospital care2 $ 5,934 $ 6,160 3.8 

 All office care3 $ 1,118 $ 1,623 45.2 

 All prescription medicines4 $ 1,782 $ 2,876 61.4 

1

Expenditures are for all types of care. 

2

Expenditures are for all inpatient, outpatient, and emergency room care. 

3

Expenditures are for all office-based medical provider care. 

4

Expenditures are for all prescription medicine purchases. 

( ) indicates a negative change. 

Source: Center for Financing, Access, and Cost Trends, Agency for Healthcare Research and Quality, Medical 

Expenditure Panel Survey, 1996 and 2003.
Table 3. Average constant dollar expenditures of adults in the U.S. civilian noninstitutionalized 

population for the treatment of diabetes, by age group and type of expenditure, 1996 and 2003

 

Age and type of expenditure Average expenditure (in 2003 dollars) Percent change 

1996 2003 1996 to 2003 

All adults 

 All diabetes care1 $1,299 $1,714 32.0 

 Prescription medicines2 $ 476 $ 883 85.5 

 

18-44 years old 

 All diabetes care1 $1,155 $1,525 32.0 

 Prescription medicines2 $533 $ 910 70.7 

45-64 years old 

 All diabetes care1 $1,568 $1,552 (1.0) 

 Prescription medicines2 $ 488 $ 974 99.6 

65 or older 

 All diabetes care1 $1,124 $1,945 73.0 

 Prescription medicines2 $ 445 $ 775 74.2 

1

Expenditures are for all hospital and office-based medical provider events and prescription medicines to treat 

diabetes. 

2

Expenditures are for all prescription medicines to treat diabetes. 

( ) indicates a negative change. 

Source: Center for Financing, Access, and Cost Trends, Agency for Healthcare Research and Quality, Medical 

Expenditure Panel Survey, 1996 and 2003.