OBJECTIVES: : To assess the effect of comorbid depression on rates of health care resource utilization in patients with diabetes. METHODS: We carried out a secondary analysis of data from 2008 Medical Expenditure Panel Survey for the year. In contrast to previous research, we identified diabetes and comorbid depression among the adult population by using their self-report. People with diabetes were identified by examining their self report regarding a diabetes diagnosis. We identified patients with diagnosed and undiagnosed depression by using a score of ≥3 on the two-item Patient Health Questionnaire. This unique method of identifying depression has been validated elsewhere. We calculated odds ratios for having depression in respondents with and without diabetes adjusting for demographic factors. We compared the mean unadjusted health care utilization rates in the diabetic people with and without depression.  We also assessed the factors that were associated with incidence of comorbid diabetes and the use of health care services. RESULTS: : In the year 2008, 2381 respondents suffered from diabetes while 400 respondents suffered from comorbid depression. Diabetics were more likely than non-diabetics to suffer from depression (Adjusted OR 1.20, 95% CI 1.05 – 1.37). People suffering from this comorbidity were more likely to be females, married, Hispanic and have a lower poor income level.  The mean emergency room visits (0.90 vs. 0.41 p<0.001), the mean outpatient visits (19.62 vs. 16.22 p<0.001) and the mean office based visits (215.1 vs. 159.3 p=0.003) were higher in diabetic patients with depression.  In the adjusted analyses, depression was associated with an increase in the use of health care resources. CONCLUSIONS: Utilizing a unique way to identify diabetes and depression in the general population, we found that the likelihood of suffering from depression is higher in case of diabetics. Comorbid diabetes and depression is associated with higher use of health services.