OBJECTIVES: To evaluate the health care cost for the management of diabetes along with other co-morbidities condition before and after counseling.  METHODS: A Prospective interventional study was conducted in the community setup of Warangal, India for a period of four months. Only the educated Diabetic patients with other comorbidities were enrolled in the study.  The data collected were cost of medications, lab tests, consultation fee, transportation cost. The average total health care cost was calculated based on the previous two months expenses of each patient before and after counseling.  RESULTS: A total of 100 patients were evaluated in the study period. Out of 100 patients, majorities were in the age group of 41-61 yrs 66(66%) and men 63(63%) followed by women 37(37%). Most of the patients were diabetes with hypertension, dyslipidemia. The average cost of medications per patient Rs. 1540(72.81%), the average laboratory cost per patient Rs. 350(16.55%), the average doctors consultation fee per patient Rs.175(8.27%), the average transportation charges per patient Rs.50(2.36%). The most common drugs prescribed in the study were Metformin, Glibenclamide, Gliclazide, Insulin, Ramipril, Amlodipine, Telmisartan, Metoprolol, Hydrochlorothiazide, Furosemide, Atorvastatin and Aspirin. The most common laboratory test includes FBS/PPBS/RBS/HbA1C, lipid profiles, urine analysis, Hb, Electrolytes and Sr.Creatinine. The average total healthcare cost for two months before and after counseling was found to be Rs.2115 and Rs.1755 per patient.  CONCLUSIONS: In summary this is the first Indian health care cost study conducted in the community setup. Our study result shows that there is decreased cost for the management of diabetes along with other co-morbidities condition after the counseling by 17% to 18% after the two months follow up. So more prevention efforts and resources are required to reduce this burden and to provide basic diabetes care in the low- and middle-income countries.