Diabetes Mellitus or Diabetes means a disease marked by high blood glucose levels resulting from defective insulin production, insulin action or both (WHO 1999). There are several types of diabetes, with different causes and clinical histories. The three main types are:

* Type 2 Diabetes; and

DiabCost Australia - 2002, the first large scale national study into the burden of Type 2 Diabetes, was released at the Australian Diabetes Society and Australian Diabetes Educators Association National Scientific Meeting in Adelaide in 2002.

The report showed that as the complications of Diabetes increase the costs escalate:

• The burden of diagnosed Type 2 Diabetes in Australia is an estimated $3 billion a year, with average costs per person at $5,360 plus $5,540 in benefits, totalling $10,900.

• The cost per person increases with the onset of complications

• $4,020 without complications

• $9,625 with both microvascular and macrovascular complications (2.8 times higher)

• The main components of direct health costs were hospitalisation due to complications (32%) and the use of medicines to treat complications (26%)

• Diabetes medication to control the disease accounted for only 4% of all healthcare costs

• Each person received an average of $5,540 in government subsidies such as pensions and sickness benefits