The diabetes cost curve just bent. Here's why that's both fantastic and frightening. We all know healthcare costs only move in one direction—up. Especially with diabetes, which has been devouring employer budgets at twice the rate of everything else. Until now.
Our latest analysis uncovered something the healthcare industry rarely delivers: actual good news. Diabetes costs are finally stabilizing. However, we may need to hold off before we pop the champagne.
Diabetes Spend Is Growing 4× Slower Than Non-Diabetic Costs: What the Data Shows
The financial data shows an unmistakable shift:
Annual spend for diabetics increasedjust 11% from 2021-2024, while spend for non-diabetics jumped 15%
Average monthly medical spend for diabetics decreased slightly (0.5%), while non-diabetic medical spend surged 17%
Prescription growth for diabetics (34%) stayed well below the 57% spike for non-diabetics
For the first time, diabetic spend is flattening faster than non-diabetic spend—completely reversing the previous pattern where diabetes costs outpaced everything else by 2x.
GLP-1s, Insulin Price Caps, and Smarter Programs: What's Actually Bending the Diabetes Cost Curve
This didn't happen by accident. Consider these major market shifts:
Amidst this positive trend in diabetes spend rests an uncomfortable reality: it may depend on a potentially permanent pharmaceutical commitment. The GLP-1 paradox exists in plain sight—stop the medication, and patients regain most of the weight and complications. As one researcher bluntly stated: "We don't really know how to stop these medicines."
The question isn't whether GLP-1s work—they do. The question is whether your organization is prepared for the long-term implications of this approach to America's diabetes epidemic.
How Employers Can Lock In Diabetes Cost Savings Before the GLP-1 Plateau Reverses
This cost plateau creates a brief strategic opportunity. While your competitors debate what to do, you can transform what's historically been a budget liability into a competitive advantage.
1. Why GLP-1 uers look expensive on paper and why that's the wrong metric.
2. Are your PBM's GLP-1 rebates going to you or to them?
Are you aware of all available rebates for your Rx spend? While your PBM takes 10% of your drug spend on GLP-1s alone, they're quietly pocketing insulin rebates and price cap savings meant for you. Demand transparency. Implement authorization controls (one PBM blocked 21.5% of inappropriate GLP-1 requests) or explore prescription optimization that can slash GLP-1 costs by 56%.
3. How to cut diabetes prescription costs by 63%
The diabetes care ecosystem is fragmented by design. Diabetic patients bounce between specialists, emergency rooms, and pharmacies, with each stop multiplying costs. Direct contracting eliminates this inefficiency. Add integrated coaching and reduce diabetes prescription costs by 63% within a year.
The diabetes cost curve is bending—now you decide whether that becomes a sustainable victory or a deeper dependency.
Nomi Health is invested in partnering with you to change the healthcare landscape. Our Trends in Spend series uses claims analysis to identify crucial patterns in healthcare costs. This report analyzed diabetes-related spending across employer health plans from 2021-2024.
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