The objective of this study was to estimate the annual cost of disability among people with diabetes. Data from the 1994 Behavioral Risk Factor Surveillance System (n = 83,566) of US individuals aged 18 to 64 years were used to estimate the annual cost of disability among people with self-reported diabetes. After we adjusted for relevant socioeconomic characteristics, logistic regression analyses demonstrated that people with diabetes are more likely to stop working outside the home (for men: adjusted odds ratio, 3.1; 95% confidence interval, 1.2 to 8.0; for women: adjusted odds ratio, 2.9; 95% confidence interval, 1.0 to 8.8). The annual cost of disability among people with diabetes was estimated at $9.3 billion in 1994. Disability among people with diabetes is a major public health problem. Efforts to reduce disability in this population could create substantial gains in productivity.