Diabetes II and Obesity Surgery – Diabetes I and New Research in Brazil - Poorly managed type 2 diabetes costs the U.S. health system an extra US$22.9 billion a year in direct medical costs to treat heart, eye, kidney and other serious health problems associated with the disease, diabetes groups reported yesterday. Annual health costs for a type 2 diabetic are three times that of the average American without diagnosed diabetes, according to a new report called State of Diabetes Complications in America.