Appendix Table A. Mean and (Standard Deviation) of Analysis Variables
Variables / Full Sample / Without Type 2 Diabetes / With Type 2 Diabetes
IV sample / Non-IV sample / IV sample / Non-IV sample / IV sample / Non-IV sample
Medical expenditures > 0 / 0.84 / 0.84 / 0.83 / 0.83 / 0.97 / 0.98
(0.37) / (0.36) / (0.38) / (0.38) / (0.17) / (0.13)
Annual Medical Expenditures* / $3,371.55 / $4,286.40 / $3,326.09 / $4,026.75 / $6,343.37 / $9,442.29
(8,192.687) / (10,718.27) / (7973.42) / (9,514.95) / (11,023.76) / (15,783.08)
BMI** (kg/m2) / 28.05 / 27.71 / 30.58 / 30.43 / 34.07 / 33.95
(5.99) / (6.01) / (5.15) / (5.08) / (6.82) / (6.76)
Female / 0.56 / 0.51 / 0.50 / 0.44 / 0.48 / 0.48
(0.50) / (0.50) / (0.50) / (0.50) / (0.50) / (0.50)
Hispanic / 0.16 / 0.13 / 0.18 / 0.15 / 0.21 / 0.15
(0.36) / (0.34) / (0.38) / (0.36) / (0.41) / (0.36)
Black / 0.19 / 0.18 / 0.20 / 0.19 / 0.21 / 0.22
(0.38) / (0.41) / (0.40) / (0.39) / (0.41) / (0.41)
White / 0.66 / 0.69 / 0.65 / 0.68 / 0.55 / 0.63
(0.47) / (0.46) / (0.48) / (0.46) / (0.50) / (0.48)
Other race / 0.05 / 0.05 / 0.03 / 0.03 / 0.06 / 0.04
(0.21) / (0.21) / (0.17) / (0.17) / (0.24) / (0.20)
Age / 43.94 / 43.04 / 43.72 / 43.23 / 46.62 / 51.63
(6.88) / (11.31) / (6.81) / (11.03) / (6.95) / (9.03)
Age 24 - 34 / 0.09 / 0.27 / 0.09 / 0.26 / 0.04 / 0.06
(0.29) / (0.45) / (0.29) / (0.44) / (0.19) / (0.23)
Age 35 - 44 / 0.46 / 0.27 / 0.47 / 0.28 / 0.37 / 0.16
(0.50) / (0.45) / (0.50) / (0.45) / (0.48) / (0.37)
Age 45 - 54 / 0.40 / 0.26 / 0.38 / 0.27 / 0.46 / 0.33
(0.49) / (0.44) / (0.49) / (0.44) / (0.50) / (0.47)
Age 55 or greater / 0.07 / 0.20 / 0.06 / 0.19 / 0.13 / 0.45
(0.25) / (0.40) / (0.24) / (0.39) / (0.38) / (0.50)
Married / 0.80 / 0.61 / 0.80 / 0.62 / 0.76 / 0.63
(0.39) / (0.49) / (0.40) / (0.48) / (0.43) / (0.48)
Less than HS diploma / 0.15 / 0.14 / 0.16 / 0.15 / 0.22 / 0.22
(0.39) / (0.35) / (0.37) / (0.35) / (0.41) / (0.41)
Variables / Full Sample / Without Type 2 Diabetes / With Type 2 Diabetes
IV sample / Non-IV sample / IV sample / Non-IV sample / IV sample / Non-IV sample
HS diploma / 0.32 / 0.31 / 0.34 / 0.33 / 0.35 / 0.35
(0.47) / (0.46) / (0.47) / (0.47) / (0.48) / (0.48)
Some college / 0.24 / 0.24 / 0.25 / 0.24 / 0.25 / 0.24
(0.43) / (0.43) / (0.43) / (0.43) / (0.44) / (0.42)
Bachelor's degree / 0.17 / 0.19 / 0.15 / 0.17 / 0.11 / 0.12
(0.37) / (0.39) / (0.36) / (0.38) / (0.32) / (0.32)
Graduate School / 0.11 / 0.12 / 0.10 / 0.10 / 0.06 / 0.07
(.31) / (0.32) / (0.29) / (0.31) / (0.22) / (0.26)
Self-reported data / 0.58 / 0.62 / 0.56 / 0.60 / 0.57 / 0.64
(0.50) / (0.49) / (0.49) / (0.49) / (0.49) / (0.48)
No. HH members aged 0 - 5 / 0.17 / 0.26 / 0.18 / 0.27 / 0.16 / 0.12
(0.47) / (0.60) / (0.49) / (0.60) / (0.44) / (0.42)
No. HH members aged 6 - 17 / 1.56 / 0.55 / 1.58 / 0.59 / 1.31 / 0.40
(1.03) / (0.92) / (1.06) / (0.95) / (1.03) / (0.81)
No. HH Members aged 18 - 64 / 2.35 / 1.98 / 2.35 / 2.00 / 2.50 / 2.03
(0.86) / (0.84) / (0.86) / (0.84) / (1.00) / (0.90)
No. HH members aged 65 or older / 0.03 / 0.06 / 0.03 / 0.06 / 0.05 / 0.10
(0.20) / (0.27) / (0.20) / (0.27) / (0.24) / (0.32)
Northeast / 0.19 / 0.19 / 0.18 / 0.18 / 0.17 / 0.17
(0.39) / (0.39) / (0.38) / (0.39) / (0.38) / (0.38)
Midwest / 0.23 / 0.22 / 0.23 / 0.23 / 0.20 / 0.21
(0.42) / (0.42) / (0.42) / (0.42) / (0.40) / (0.41)
South / 0.35 / 0.36 / 0.36 / 0.37 / 0.35 / 0.40
(0.48) / (0.48) / (0.48) / (0.48) / (0.48) / (0.49)
West / 0.23 / 0.23 / 0.22 / 0.22 / 0.27 / 0.21
(0.42) / (0.42) / (0.42) / (0.42) / (0.44) / (0.41)
MSA residence / 0.82 / 0.83 / 0.81 / 0.83 / 0.80 / 0.79
(0.38) / (0.38) / (0.39) / (0.38) / (0.40) / (0.41)
Year 2000 / 0.04 / 0.08 / 0.04 / 0.08 / 0.04 / 0.06
(0.27) / (0.27) / (0.18) / (0.27) / (0.18) / (0.24)
Year 2001 / 0.09 / 0.09 / 0.10 / 0.09 / 0.08 / 0.07
(0.29) / (0.28) / (0.29) / (0.28) / (0.26) / (0.25)
Variables / Full Sample / Without Type 2 Diabetes / With Type 2 Diabetes
IV sample / Non-IV sample / IV sample / Non-IV sample / IV sample / Non-IV sample
Year 2002 / 0.10 / 0.09 / 0.10 / 0.08 / 0.8 / 0.07
(0.29) / (0.28) / (0.30) / (0.28) / (0.27) / (0.26)
Year 2003 / 0.10 / 0.09 / 0.10 / 0.09 / 0.07 / 0.08
(0.29) / (0.29) / (0.29) / (0.28) / (0.26) / (0.27)
Year 2004 / 0.10 / 0.09 / 0.09 / 0.09 / 0.10 / 0.09
(0.29) / (0.29) / (0.29) / (0.29) / (0.30) / (0.28)
Year 2005 / 0.10 / 0.09 / 0.10 / 0.09 / 0.09 / 0.09
(0.29) / (0.29) / (0.29) / (0.29) / (0.30) / (0.29)
Year 2006 / 0.10 / 0.09 / 0.10 / 0.09 / 0.10 / 0.10
(0.29) / (0.29) / (0.29) / (0.29) / (0.30) / (0.30)
Year 2007 / 0.10 / 0.09 / 0.09 / 0.09 / 0.10 / 0.10
(0.29) / (0.29) / (0.29) / (0.29) / (0.30) / (0.30)
Year 2008 / 0.09 / 0.09 / 0.10 / 0.10 / 0.13 / 0.12
(0.29) / (0.29) / (0.30) / (0.29) / (0.33) / (0.33)
Year 2009 / 0.09 / 0.09 / 0.10 / 0.10 / 0.11 / 0.11
(0.29) / (0.29) / (0.30) / (0.30) / (0.32) / (0.31)
Year 2010 / 0.09 / 0.10 / 0.10 / 0.10 / 0.11 / 0.12
(0.29) / (0.29) / (0.30) / (0.30) / (0.31) / (0.32)
BMI of oldest child / 22.63 / - / 23.16 / - / 25.19 / -
(5.00) / - / (5.13) / - / (6.14) / -
Oldest child is female / 0.48 / - / 0.48 / - / 0.48 / -
(0.50) / - / (0.50) / - / (0.50) / -
Age of oldest child in months / 190.98 / - / 190.91 / - / 197.83 / -
(30.64) / - / (30.68) / - / (29.61) / -
Observations / 41,435 / 172,066 / 26,707 / 104,381 / 2,308 / 10,737
*Observations with positive medical expenditures / 33,025 / 138,280 / 20,831 / 82,407 / 2,223 / 10,478

Notes: Means are weighted to be nationally representative. * Mean expenditures calculated conditional on having positive expenditures. **Individuals with BMI < 25 omitted in the diabetic and non-diabetic sub-samples.

Appendix Table 1: Predicted Change in Total Annual Medical Expenditures ($US) from Non-IV Model Using Entire Sample
Starting BMI (kg/m2) / Reduction in BMI
5% / 10% / 15% / 20%
30 / 104.67 / 195.06 / 272.13 / 336.72
(11.13) / (23.34) / (36.80) / (51.66)
31 / 118.38 / 220.75 / 308.31 / 382.06
(10.88) / (22.72) / (35.76) / (50.19)
32 / 133.31 / 248.69 / 356.12 / 431.17
(10.77) / (22.27) / (36.54) / (48.82)
33 / 149.59 / 279.07 / 390.18 / 484.38
(10.85) / (22.10) / (34.25) / (47.66)
34 / 167.32 / 312.11 / 436.43 / 550.56
(11.22) / (22.35) / (34.07) / (48.48)
35 / 186.67 / 348.05 / 486.63 / 604.48
(11.96) / (23.18) / (34.54) / (46.72)
36 / 207.76 / 387.17 / 541.15 / 672.18
(13.14) / (24.76) / (35.90) / (47.46)
37 / 230.79 / 429.76 / 600.38 / 745.58
(14.84) / (27.23) / (38.4) / (49.41)
38 / 255.94 / 476.15 / 664.75 / 825.18
(17.08) / (30.71) / (42.24) / (52.88)
39 / 283.42 / 526.71 / 734.74 / 911.56
(19.90) / (35.26) / (47.56) / (58.14)
40 / 313.47 / 581.85 / 810.89 / 1,005.34
(23.35) / (40.97) / (54.49) / (65.37)
41 / 346.34 / 642.02 / 893.79 / 1,107.20
(27.48) / (47.90) / (63.13) / (74.73)
42 / 382.33 / 707.72 / 984.08 / 1,217.90
(32.34) / (56.16) / (73.58) / (86.35)
43 / 421.77 / 779.50 / 1,082.48 / 1,338.28
(38.02) / (65.87) / (85.99) / (100.37)
44 / 465.01 / 857.99 / 1,189.81 / 1,469.28
(44.63) / (77.18) / (100.54) / (116.98)
45 / 512.45 / 943.87 / 1,306.95 / 1,942.25
(52.26) / (90.28) / (117.45) / (152.41)

Notes: Data are from the Medical Expenditure Panel Survey (MEPS) 2000-2010. The model is two-part non-instrumental-variables (non-IV) model with linear and quadratic terms for BMI. Table cells contain the marginal effect of a reduction of BMI of the given magnitude, and the survey-adjusted standard errors in parentheses. Bold marginal effects are statistically significant at the 95% level. N =172,066.

Appendix Table 2: Predicted Change in Total Annual Medical Expenditures ($US) from Non-IV Model Using IV Sample
Starting BMI (kg/m2) / Reduction in BMI
5% / 10% / 15% / 20%
30 / 94.30 / 178.23 / 252.57 / 317.99
(16.24) / (33.15) / (51.06) / (70.25)
31 / 104.90 / 198.13 / 280.64 / 353.23
(16.56) / (33.45) / (51.12) / (69.96)
32 / 116.41 / 219.71 / 319.24 / 391.31
(17.17) / (34.19) / (53.88) / (70.15)
33 / 128.92 / 243.11 / 343.91 / 432.46
(18.16) / (35.54) / (52.95) / (71.03)
34 / 142.51 / 268.50 / 379.52 / 485.14
(19.6) / (37.65) / (55.14) / (74.98)
35 / 157.29 / 296.03 / 418.06 / 524.97
(21.58) / (40.69) / (58.5) / (76.)
36 / 173.36 / 325.90 / 459.79 / 576.90
(24.17) / (44.8) / (63.25) / (80.7)
37 / 190.84 / 358.31 / 504.99 / 633.04
(27.41) / (50.1) / (69.6) / (87.26)
38 / 209.86 / 393.51 / 553.95 / 693.75
(31.37) / (56.71) / (77.73) / (95.94)
39 / 230.56 / 431.73 / 607.02 / 759.40
(36.11) / (64.74) / (87.79) / (106.98)
40 / 253.11 / 473.25 / 664.55 / 830.45
(41.71) / (74.29) / (99.96) / (120.58)
41 / 277.68 / 518.39 / 726.94 / 907.34
(48.24) / (85.52) / (114.39) / (136.96)
42 / 304.46 / 567.48 / 794.65 / 990.61
(55.8) / (98.59) / (131.29) / (156.33)
43 / 333.67 / 620.89 / 868.14 / 1,080.81
(64.52) / (113.68) / (150.9) / (178.96)
44 / 365.56 / 679.03 / 947.97 / 1,178.58
(74.53) / (131.02) / (173.5) / (205.15)
45 / 400.38 / 742.36 / 1,034.71 / 1,561.82
(85.99) / (150.87) / (199.39) / (268.4)

Notes: Data are from the Medical Expenditure Panel Survey (MEPS) 2000-2010. The model is a two-part non-instrumental-variables (non-IV) model with linear and quadratic terms for BMI. Table cells contain the marginal effect of a reduction of BMI of the given magnitude, and the survey-adjusted standard errors in parentheses. Bold marginal effects are statistically significant at the 95% level. N =41,435.

Appendix Table 3: Predicted Change in Total Annual Medical Expenditures ($US) from Non-IV Model for Those Without Type 2 Diabetes
Starting BMI (kg/m2) / Reduction in BMI
5% / 10% / 15% / 20%
30 / 142.10 / 279.56 / 412.52 / 541.12
(11.93) / (23.05) / (33.39) / (43.00)
31 / 150.04 / 295.02 / 435.11 / 570.45
(12.9) / (24.9) / (36.05) / (46.39)
32 / 158.26 / 311.01 / 475.03 / 600.74
(13.92) / (26.85) / (40.27) / (49.97)
33 / 166.76 / 327.55 / 482.57 / 632.02
(15.00) / (28.92) / (41.81) / (53.74)
34 / 175.56 / 344.64 / 507.48 / 680.88
(16.14) / (31.1) / (44.94) / (59.13)
35 / 184.65 / 362.31 / 533.21 / 697.63
(17.35) / (33.4) / (48.23) / (61.91)
36 / 194.06 / 380.56 / 559.79 / 732.02
(18.62) / (35.83) / (51.7) / (66.32)
37 / 203.78 / 399.42 / 587.23 / 767.51
(19.96) / (38.38) / (55.35) / (70.96)
38 / 213.84 / 418.91 / 615.55 / 804.11
(21.37) / (41.07) / (59.19) / (75.83)
39 / 224.23 / 439.03 / 644.79 / 841.88
(22.86) / (43.9) / (63.23) / (80.96)
40 / 234.97 / 459.82 / 674.97 / 880.83
(24.42) / (46.87) / (67.47) / (86.34)
41 / 246.07 / 481.28 / 706.11 / 920.99
(26.07) / (50.) / (71.93) / (91.99)
42 / 257.53 / 503.44 / 738.24 / 962.41
(27.8) / (53.29) / (76.61) / (97.91)
43 / 269.38 / 526.32 / 771.39 / 1,005.11
(29.62) / (56.73) / (81.52) / (104.12)
44 / 281.61 / 549.93 / 805.58 / 1,049.13
(31.53) / (60.35) / (86.66) / (110.63)
45 / 294.24 / 574.30 / 840.84 / 1,413.71
(33.53) / (64.15) / (92.06) / (147.69)

Notes: Data are from the Medical Expenditure Panel Survey (MEPS) 2000-2010. The model is a two-part non-instrumental-variables (non-IV) model with linear and quadratic terms for BMI. Table cells contain the marginal effect of a reduction of BMI of the given magnitude, and the survey-adjusted standard errors in parentheses. Bold marginal effects are statistically significant at the 95% level. N =104,381.

Appendix Table 4: Predicted Change in Total Annual Medical Expenditures ($US) From Non-IV Model for Those With Type 2 Diabetes
Starting BMI (kg/m2) / Reduction in BMI
5% / 10% / 15% / 20%
30 / 263.07 / 519.34 / 768.99 / 1,012.20
(33.22) / (64.68) / (94.47) / (122.64)
31 / 276.50 / 545.62 / 807.56 / 1,062.52
(35.54) / (69.16) / (100.94) / (130.96)
32 / 290.31 / 572.63 / 880.97 / 1,114.18
(37.97) / (73.85) / (111.82) / (139.67)
33 / 304.52 / 600.40 / 887.89 / 1,167.22
(40.52) / (78.76) / (114.81) / (148.77)
34 / 319.13 / 628.93 / 929.69 / 1,255.44
(43.19) / (83.89) / (122.22) / (162.37)
35 / 334.15 / 658.25 / 972.61 / 1,277.53
(45.98) / (89.26) / (129.96) / (168.2)
36 / 349.59 / 688.38 / 1,016.69 / 1,334.86
(48.91) / (94.88) / (138.05) / (178.55)
37 / 365.46 / 719.32 / 1,061.95 / 1,393.70
(51.96) / (100.74) / (146.49) / (189.36)
38 / 381.78 / 751.11 / 1,108.41 / 1,454.06
(55.15) / (106.86) / (155.3) / (200.63)
39 / 398.55 / 783.77 / 1,156.11 / 1,516.00
(58.48) / (113.25) / (164.49) / (212.38)
40 / 415.78 / 817.30 / 1,205.06 / 1,579.53
(61.96) / (119.91) / (174.07) / (224.62)
41 / 433.48 / 851.74 / 1,255.30 / 1,644.70
(65.59) / (126.86) / (184.05) / (237.36)
42 / 451.67 / 887.10 / 1,306.87 / 1,711.54
(69.37) / (134.11) / (194.45) / (250.63)
43 / 470.36 / 923.40 / 1,359.77 / 1,780.09
(73.32) / (141.65) / (205.28) / (264.44)
44 / 489.55 / 960.67 / 1,414.06 / 1,850.38
(77.43) / (149.52) / (216.55) / (278.81)
45 / 509.26 / 998.93 / 1,469.75 / 2,499.09
(81.72) / (157.71) / (228.28) / (373.62)

Notes: Data are from the Medical Expenditure Panel Survey (MEPS) 2000-2010. The model is a one-part non-instrumental variables (non-IV) model with a linear term for BMI. Table cells contain the marginal effect of a reduction of BMI of the given magnitude, and the survey-adjusted standard errors in parentheses. Bold marginal effects are statistically significant at the 95% level. N =10,737.

Appendix Table 5: Predicted Change in Annual Prescription Drug Expenditures ($US) from non-IV Model
Starting BMI (kg/m2) / Reduction in BMI
5% / 10% / 15% / 20%
30 / 49.62 / 96.23 / 140.05 / 181.32
(2.82) / (5.72) / (8.68) / (11.71)
31 / 53.45 / 103.50 / 150.43 / 194.50
(2.87) / (5.8) / (8.81) / (11.88)
32 / 57.55 / 111.27 / 165.35 / 208.53
(2.93) / (5.9) / (9.31) / (12.04)
33 / 61.93 / 119.57 / 173.30 / 223.47
(3.01) / (6.03) / (9.09) / (12.22)
34 / 66.63 / 128.44 / 185.89 / 243.22
(3.14) / (6.21) / (9.29) / (12.79)
35 / 71.66 / 137.93 / 199.33 / 256.31
(3.32) / (6.47) / (9.57) / (12.7)
36 / 77.05 / 148.07 / 213.67 / 274.37
(3.57) / (6.84) / (9.98) / (13.1)
37 / 82.83 / 158.93 / 228.98 / 293.62
(3.92) / (7.37) / (10.57) / (13.67)
38 / 89.02 / 170.54 / 245.35 / 314.14
(4.38) / (8.08) / (11.38) / (14.47)
39 / 95.67 / 182.98 / 262.84 / 336.04
(4.97) / (9.02) / (12.48) / (15.59)
40 / 102.81 / 196.30 / 281.53 / 359.40
(5.71) / (10.22) / (13.91) / (17.08)
41 / 110.47 / 210.58 / 301.52 / 384.35
(6.6) / (11.69) / (15.71) / (19.01)
42 / 118.70 / 225.88 / 322.91 / 410.98
(7.66) / (13.48) / (17.93) / (21.43)
43 / 127.54 / 242.28 / 345.80 / 439.44
(8.91) / (15.59) / (20.6) / (24.4)
44 / 137.04 / 259.87 / 370.30 / 469.85
(10.36) / (18.07) / (23.76) / (27.96)
45 / 147.25 / 278.75 / 396.53 / 627.37
(12.04) / (20.95) / (27.46) / (36.44)

Notes: Data are from the Medical Expenditure Panel Survey (MEPS) 2000-2010. The estimates are from a non-instrumental-variables (non-IV) model with linear and quadratic terms for BMI. Table cells contain the marginal effect of a reduction of BMI of the given magnitude, and the survey-adjusted standard errors in parentheses. Bold marginal effects are statistically significant at the 95% level. N= 172,066. There were 107,877 individuals with positive expenditures on prescription drugs with mean annual expenditures of $1,216.203.

1