Why does diabetes cost so much?

The estimated cost of diabetes in 2007 was $174 billion dollars. This includes: $116 billion in excess medical expenditures and $58 billion in reduced national productivity, $27 billion for care to directly treat diabetes, $58 billion to treat the portion of diabetes-related chronic complications that are attributed to diabetes, $31 billion in excess general medical cost (Richard Cauchi) and (NUVO). The national cost of diabetes in the U.S. in 2007 exceeds $174 billion. This estimate includes $116 billion in excess medical expenditures attributed to diabetes, as well as $58 billion in reduced national productivity. People with diagnosed diabetes, on average, have medical expenditures that are approximately 2.3 times higher than the expenditures would be in the absence of diabetes. Approximately $1 in $10 health care dollars is attributed to diabetes. Indirect costs include increased factors such as absenteeism, reduced productivity, and lost productive capacity due to early mortality (ADA).

Diabetes is extremely expensive and yes cost may vary, but how could insurance companies think about not covering some materials which would make the prices go up even more?

Caushi, Richard. "Economic Costs of Diabetes in the United States." National
     Conference of State Legislatures. NCSL, n.d. Web. 4 Apr. 2011.
     <http://www.ncsl.org/default.aspx?tabid=14504>.

"The cost of Diabetes ." American Diabetes Association. Stop Diabetes , n.d.
     Web. 4 Apr. 2011. <http://www.diabetes.org/advocate/resources/       cost-of-diabetes.html>.