Stethoscope on a pile of $100 bills.

Analysis compiled by Avalere Health and supported by Breakthrough T1D (formerly JDRF) finds that research funded by the Special Diabetes Program (SDP) has yielded more than $50 billion in federal healthcare savings. 

Created by Congress in 1997 and administered by the National Institutes of Health (NIH), the SDP provides federal funding to support research to prevent, treat, and ultimately cure type 1 diabetes (T1D). 

The Special Diabetes Program (SDP) is set to expire soon! Ask your Members of Congress to renew the SDP!

Working closely with the SDP’s champions in Congress—Senators Susan Collins (R-ME) and Jeanne Shaheen (D-NH) and Diana DeGette (D-CO) and Gus Bilirakis (R-FL)—Breakthrough T1D leads advocacy efforts supporting continued funding for the SDP.

The SDP has directly supported many of the most important innovations that have changed how T1D is managed—including continuous glucose monitors (CGMs) and automated insulin delivery (AID) systems.

Today, these technologies are the standard of care and are used more broadly, including by people with type 2 diabetes (T2D) contributing to improved health outcomes for people with T1D and T2D.

Understanding the SDP’s Economic Impact

To better understand the program’s economic impact, Avalere Health conducted an analysis of estimated federal cost savings associated with SDP-supported technologies. 

The analysis focused on direct medical expenditures and modeled the savings resulting from the use of CGM and AID systems including savings to the tax-payer supported public insurance programs like including Medicare, Medicaid, and the Department of Veteran’s Affairs.

Avalere Health’s findings indicate that CGMs and AID systems alone have generated at least $50 billion in federal healthcare savings through improved glucose management and reduced diabetes-related complications. 

The actual federal savings and total economic impact of these technologies is likely higher as the analysis does not account for indirect cost savings—such as improved productivity (such as, not having to take time off work to treat a low, etc.), reduced disability, or long-term prevention of complications. 

CGM and AID 2024 utilization and savings, total federal savings from start of SDP

TechnologyPopulation Using Technology (2024)Annual Savings Per Patient (2024)Federal Savings By Diabetes Type (1998-2024)Total Federal Savings (1998-2024)
Continuous Glucose Monitors (CGMs) Without AIDT1D: 749,700
T2D: 1,738,600
$5,502T1D: $10.9 Billion
T2D: $21.2 Billion
$32.1 Billion
Automated Insulin Delivery System (AID)T1D: 780,300
T2D: 1,856,400
$5,306T1D: $5.4 Billion
T2D: $12.9 Billion
$18.3 Billion

T1D therapies on that are on the market or currently in development have benefited from SDP-supported research in numerous ways, including:

  • Clinical trials and technology validation for CGMs and AID systems
  • Development of disease-modifying therapies, including Tzield, the first therapy approved by the FDA to delay the onset of insulin therapy dependence in T1D
  • Development of advanced therapies for diabetic eye disease
  • Early-stage beta-cell replacement research, including Lantidra, the first therapy approved by the FDA to place insulin-producing cells back in the body and ultimately reduce or eliminate the need for insulin therapy

The SDP’s Future

This study and existing literature confirm that the SDP has demonstrated a strong return on investment—both clinically and economically. The SDP has also made life with T1D more manageable. AID systems are now standard of care and they are leading to better outcomes with less disease burden. 

Ongoing support for diabetes research and treatments will be essential to realizing the full potential of emerging innovations for individuals with diabetes

Disruptions in SDP funding may hinder clinical research infrastructure, delay scientific advancement, and slow patient access to therapies that reduce complications and lower overall costs. 

As policymakers evaluate the future of the SDP in the debate over government funding stakeholders should consider how funding decisions will maintain or interrupt momentum in diabetes research, bringing advanced therapies to market, and how that will impact continued cost savings from improved health outcomes for people with diabetes.

Read the Insights & Analysis report and the full white paper on the Avalere Health website.

Editor’s note: Content for this story drawn from Avalere Health’s Insights & Analysis report.