The Economic Costs of Smoking

Joel
Joined: 18 Dec 2008, 23:57

18 Mar 2005, 07:32 #11

Another post that refers to the economic implications of "smoking breaks."
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Joel
Joined: 18 Dec 2008, 23:57

18 May 2005, 20:55 #12

From: Joel Sent: 6/15/2004 1:39 PM
I saw the issue raised in a couple of posts of how people were afraid that they would no longer be able to be as productive as ex-smokers as they were as smokers--as if smoking did something to enhance their ability to perform their jobs. This whole string shows how smoking generally negatively impacts smokers productivity. The same idea is often stated for other drugs too, about how much more productive people feel when they used cocaine or other stimulant drugs. People who resort to enhancing their job performance by means of drug usage will often end up working themselves right out of a job because of the long-term effects of what those drugs are going to do to their real performance. With smoking people may not end up working themselves out of a job but they may very well smoke themselves out of health and eventually out of life. The real way to enhance your current productivity and extend the length of time that you are able to work effectively is to stick to your commitment to never take another puff!

Joel
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carvoiero gold
Joined: 18 Dec 2008, 23:58

20 May 2005, 03:52 #13

This message has been deleted by the author.
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Joel
Joined: 18 Dec 2008, 23:57

12 Oct 2005, 19:15 #14

I saw the issue raised in a couple of posts of how people were afraid that they would no longer be able to be as productive as ex-smokers as they were as smokers--as if smoking did something to enhance their ability to perform their jobs. This whole string shows how smoking generally negatively impacts smokers productivity. The same idea is often stated for other drugs too, about how much more productive people feel when they used cocaine or other stimulant drugs. People who resort to enhancing their job performance by means of drug usage will often end up working themselves right out of a job because of the long-term effects of what those drugs are going to do to their real performance. With smoking people may not end up working themselves out of a job but they may very well smoke themselves out of health and eventually out of life. The real way to enhance your current productivity and extend the length of time that you are able to work effectively is to stick to your commitment to never take another puff!

Joel
Business Costs in Smoke-Filled Environments
June 2004

ABSENTEEISM AND LOST PRODUCTIVITY
  • Smokers, on average, miss 6.16 days of work per year due to sickness (including smoking related acute and chronic conditions), compared to nonsmokers, who miss 3.86 days of work per year. 1

  • In a study of health care utilization in 20,831 employees of a single, large employer, employees who smoked had more hospital admissions per 1,000 (124 vs. 76), had a longer average length of stay (6.47 vs. 5.03 days), and made six more visits to health care facilities per year than nonsmoking employees. 2

  • A national study based on American Productivity Audit data of the U.S. workforce found that tobacco use was one of the greatest variables observed when determining worker lost production time (LPT)-greater than alcohol consumption, family emergencies, age, or education. The study reported that LPT increased in relation to the amount smoked; LPT estimates for workers who reported smoking one pack of cigarettes per day or more was 75% higher than that observed for nonsmoking and ex-smoking workers. In addition, employees who smoked had approximately two times more lost production time per week than workers who never smoked, a cost equivalent of roughly $27 billion in productivity losses for employers. 3

  • The U.S. Office of Technology Assessment estimated that in 1990 lost economic productivity from disability and premature mortality caused by smoking was $47 billion. 4

  • Businesses pay an average of $2,189 in workers' compensation costs for smokers compared with $176 for nonsmokers. 5

  • The U.S. Centers for Disease Control and Prevention (CDC) puts a $3,391 price tag on each employee who smokes: $1,760 in lost productivity and $1,623 in excess medical expenditures.6 In addition, estimated costs associated with secondhand smoke's effects on nonsmokers can add up to $490 per smoker per year. 7, 8
MAINTENANCE
  • The U.S. Environmental Protection Agency (EPA) estimates that smokefree restaurants can expect to save about $190 per 1,000 square feet each year in lower cleaning and maintenance costs. 9 The EPA also estimates a savings of $4 billion to $8 billion per year in building operations and maintenance costs if comprehensive smokefree indoor air policies were adopted nationwide. 10

  • The Organization for Economic Cooperation and Development estimates that construction and maintenance costs are seven percent higher in buildings that allow smoking than in buildings that are smokefree. 11

  • A 1993 survey of businesses conducted by the Building Owners and Management Association (BOMA) International found that the elimination of smoking from a building reduced cleaning expenses by an average of 10%. Smoking was also cited as the number one cause of fires on a BOMA fire safety survey. 12

  • The National Fire Protection Association found that in 1998 smoking materials caused 8,700 fires in non-residential structures resulting in a direct property damage of $60.5 million. 13

  • In a survey of cleaning and maintenance costs among 2,000 companies that adopted smokefree policies, 60 percent reported reduced expenditures. 14

  • After Unigard Insurance in Seattle went smokefree, its maintenance contractor voluntarily reduced the fee by $500 per month because the cleaning staff no longer had to dump and clean ashtrays, dust desks, or clean carpets as frequently. 15

  • Using U.S. Bureau of Economic Analysis data, it was determined that employees who smoke cost Marion County, Indiana, businesses $260.1 million in increased health insurance premiums, lost productivity, and absenteeism, as well as additional recruitment and training costs resulting from premature retirement and deaths due to smoking. 16

  • At the Dollar Inn in Albuquerque, New Mexico, maintenance costs are 50 percent lower in nonsmoking rooms. 17

  • Merle Norman Cosmetics Company in Los Angeles voluntarily went smokefree and saved $13,500 the first year in reduced housekeeping costs. 18
INSURANCE RATES
  • Dozens of companies offer discounts on life, disability, and medical insurance for nonsmokers. The total property and contract losses due to fires caused by smoking materials was more than $10.6 million in 1996. The National Fire Protection Association reports $391 million in direct property damage for smoking related fires between 1993-1996. Landlords and restaurants with smokefree premises have negotiated lower fire and property insurance premiums. 19 Fire insurance is commonly reduced 25-30% in smokefree businesses. 20

  • The American Cancer Society reports that employees who smoke have an average insured payment for health care of $1,145, while nonsmoking employees average $762. 21

REFERENCES
  1. Halpern, M.T.; Shikiar, R.; Rentz, A.M.; Khan, Z.M., "Impact of smoking status on workplace absenteeism and productivity," Tobacco Control 10(3): 233-238, September 2001.
  2. [n.a.]."The Cost of Smoking to Business" American Cancer Society. [n.d.] Accessed on May 18, 2004. Download at http://www.cancer.org/docroot/NWS/conte ... siness.asp.
  3. Stewart, W.F.; Ricci, J.A.; Chee, E.; Morganstein, D. "Lost Productivity Work Time Costs From Health Conditions in the United States: Results From the American Productivity Audit." JOEM. 45(12): 1234-1246. December 2003.
  4. Halpern, M.T.; Shikiar, R.; Rentz, A.M.; Khan, Z.M., "Impact of smoking status on workplace absenteeism and productivity," Tobacco Control 10(3): 233-238, September 2001.
  5. Musich, S.; Napier, D.; Edington, D.W.; "The Association of Health Risks With Workers' Compensation Costs." JOEM. 43(6): 534-541, June 2001.
  6. Fellows, J.L.; Trosclair, A.; Rivera C.C.; National Center for Chronic Disease and Prevention and Health Promotion, "Annual Smoking Attributable Mortality, Years of Potential Life Lost, and Economic Costs-United States, 1995-1999." Morbidity and Mortality Weekly Report. JAMA, (287)18:2335-2356, 8 May 2002.
  7. Kristein, "How Much Can Business Expect to Profit From Smoking Cessation?" Preventive Medicine, 1983; 12:358-381.
  8. Jackson & Holle, "Smoking: Perspectives 1985," Primary Care, 1985; 12:197-216.
  9. [n.a.], "The dollars (and sense) benefits of having a smoke-free workplace," Michigan Department of Community Health, [2000].
  10. U.S. Department of Health and Human Services: Centers for Disease Control and Prevention, "Clean Indoor Air Regulations Fact Sheet." National Center for Chronic Disease Prevention and Health Promotion. April 11, 2001. Accessed on May 18, 2004. Download at http://www.cdc.gov/tobacco/sgr/sgr_2000 ... _clean.htm.
  11. [n.a.], "The dollars (and sense) benefits of having a smoke-free workplace," Michigan Department of Community Health, [2000].
  12. Garland, W.S., BOMA Supports Smoking Ban in Buildings, http://www.boma.org/comartle/comsmoke.htm, [n.d.] Accessed October 31, 2002.
  13. Hall, Jr., J.R., "The U.S. Smoking-Material Fire Problem," National Fire Protection Association, Fire Analysis and Research Division, April 2001.
  14. [n.a.], "The dollars (and sense) benefits of having a smoke-free workplace," Michigan Department of Community Health, [2000].
  15. Ibid., 2000.
  16. Zollinger, T.W.; Saywell, Jr., R.M.; Overgaard, A.D.; Holloway, A.M., "The economic impact of secondhand smoke on the health of residents and employee smoking on business costs in Marion County, Indiana for 2000," Marion County Health Department, February 2002.
  17. [n.a.], "The dollars (and sense) benefits of having a smoke-free workplace," Michigan Department of Community Health, [2000].
  18. American Lung Association (ALA) of Contra Costa/Solano, "Toward a Smoke-Free Workplace," Pleasant Hill, CA: American Lung Association (ALA) of Contra Costa/Solano, [n.d.].
  19. [n.a.], "The dollars (and sense) benefits of having a smoke-free workplace," Michigan Department of Community Health, [2000].
  20. Health Now!, "Health Now! and the business community." Accessed on May 13, 2004. Download at http://www.healthnowma.org/index.php?target=23.
  21. [n.a.]."The Cost of Smoking to Business" American Cancer Society. [n.d.] Accessed on May 18, 2004. Download at http://www.cancer.org/docroot/NWS/conte ... siness.asp.
© 2004, Americans for Nonsmokers' Rights, American Nonsmokers' Rights Foundation
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Joel
Joined: 18 Dec 2008, 23:57

06 Jan 2006, 23:19 #15

From: John (Gold) Sent: 1/6/2006 8:39 AM
The Basics - The high cost of smoking
These days, smoking can even cost you your job, not to mention the expense of cigarettes, dry cleaning and insurance. But a 40-year-old pack-a-day smoker who quits and puts the savings into a 401(k) earning 9% a year will have $250,000 by age 70.

By Hilary Smith

If the threat of cancer can't convince you to quit smoking, maybe the prospect of poverty will.

The financial consequences of lighting up stretch far beyond the cost of Imagea pack of cigarettes. Smokers pay more for insurance and lose money on the resale value of their cars and homes. They spend extra on dry cleaning and teeth cleaning. Long term, they earn less and receive less in pension and Social Security benefits. And now, being a smoker can not only mean you don't get hired -- you can get fired, too: Weyco Inc., a medical benefits administrator in Okemos, Mich., after announcing it would no longer employ smokers, fired four employees who refused to submit to a breath test.

The American Civil Liberties Union's (ACLU)National Workrights Institute estimates that more than 6,000 companies refuse to hire smokers. A few examples:

  • Kalamazoo Valley Community College in Michigan stopped hiring smokers for full-time positions at both its Michigan campuses;
  • Alaska Airlines, based in Washington State, requires a nicotine test before hiring people;
  • The Tacoma-Pierce County (Wash.) Health Department has applicants sign an "affidavit of nontobacco use;"
  • Union Pacific won't hire smokers.
The costs don't stop with your paycheck. New CDC figures assert that smokers cost the economy nearly $94 billion yearly in lost productivity. An additional $89 billion is estimated spent on public and private healthcare combined. The Campaign for Tobacco-Free Kids Taxpayers says each American household spends $596 a year in federal and state taxes due to smoking.

Some of these numbers are disputed, however, by the Bureau of National Affairs which says 95% of companies banning smoking report no financial savings and the U.S. Chamber of Commerce which finds no connection between smoking and absenteeism.

Start with the obvious


According to the Campaign for Tobacco-Free Kids, the cost of a pack averages $4.32, with the highest prices in Maine ($6.46) and New Jersey ($6.06) and the lowest in Missouri ($3.33).

Using this number, a pack-a-day smoker burns through about $30.24 per week, or nearly $1,600 per year. That's a fat house payment or a nice vacation with the family. A 40-year-old who quits smoking and puts the savings into a 401(k) earning 9% a year would have an extra $250,000 by age 70.

But only you know exactly how much you pay and how often. Plug your yearly tally into our Savings Calculator and see what it'll cost you over the coming decades.

The one place many smokers feel free and comfortable to light up is in their car. Without consistent and thorough cleanings, however, a car that is smoked in will soon start to resemble an ashtray on wheels. The interior will inevitably smell like smoke, and stray ashes and butts can burn holes in the upholstery and floor mats.

None of these things has much financial impact until you try to sell the car. Figure a minimum of $150 for a good cleaning with an extractor.

On a trade-in, dealers can easily knock off more than $1,000 on higher-end vehicles like vans, SUVs and expensive sport-types. Terry Cooper, a car dealer with seven new- and used-car stores, says he took a 1999 Porsche 911 Cabriolet in on trade for $37,000. That sounds OK, but the previous owner could have fetched $40,000 for it had he not "smoked out" the car's interior.

The criteria that apply to cars apply to homes as well, only on a bigger scale.

Smokers' houses often require all new paint and/or wall treatments, as well as professional drapery and carpet cleaning. According to Contractors.com, priming and painting an average-size living room, dining room and two bedrooms would cost around $2,100. The Carpet Buying Handbook puts the average cleaning cost per square foot at 28 cents, and the average home has 1,000 square feet of carpet. That's $280. Add $55 to clean a typical sofa and $25 for a chair, says Diversified Carpet in San Diego.

Walt Molony with the National Association of Realtors says that "certainly the smell of cigarettes can be a turn-off to potential buyers," but he also notes that it is less of a problem in tight housing markets.

The insurers weigh in, and they're not happy


We pulled some online quotes on 20-year term life insurance (a $500,000 policy) for a healthy 44-year-old male through BudgetLife.com. The range for a non-smoker was $695 to $ 2,250 in premiums per year; for someone smoking a pack a day, the prices skyrocketed to as much as $4,495 per year.

The difference in health insurance isn't as dramatic. According to eHealthInsurance.com, the monthly premium for a policy from Regence Blue Shield with a $1,500 deductible for a 44-year-old male nonsmoker is $198. The same policy for a smoker is $229 per month. He will pay nearly $372 more per year.

A few state governments also charge their employees extra for health insurance if they smoke, and others are gradually joining the trend. West Virginia, Georgia, Kentucky and Alabama charge state employees who smoke a surcharge; in Georgia, for example, that surcharge is an additional $40 per month.

According to the ACLU, a majority of states do not have a state law preventing employers from discriminating against potential and current employees based on non-work related activities. There are at least 21 states that do have laws that protect smokers, including Colorado and North Dakota, which ban discrimination based on any form of legal, off-duty behavior.

When shopping for homeowners insurance, nonsmokers can generally expect to receive a minimum 10% discount, according to Ray Neumiller, an agent with Farmer's Insurance in Seattle.

The insurer's point of view: Smokers burn down houses.

The most common homeowners insurance policies range from approximately $290 to $900 per year, depending on the home's location. With the discount, a non-smoker would realize savings of at least $30, but most likely more.

Benefits unclaimed, wages lost


Few people set out to cut their life short, but smokers greatly increase their chances of dying sooner than nonsmokers. In his book, "The Price of Smoking," Frank A. Sloan, director of the Center for Health Policy, Law and Management at Duke University in Durham, N.C., details the financial impact of a shorter life span on retirement benefits.

"Smokers, due to higher mortality rates, obtained lower lifetime benefits compared to never smokers, even after accounting for their smoking-related lower lifetime contributions," the research says.

Sloan and his colleagues found the effects of smoking on lifetime Social Security benefits were $1,519 for 24-year-old female smokers and $6,549 for 24-year-old male smokers. Essentially this is money paid into Social Security but never collected because the beneficiary died prematurely of a smoking-related illness.

"You could be paying into Social Security year after year, and if you die at 66 because you're a smoker, it's money down the drain," says Sloan.

Numerous studies find that smokers earn anywhere from 4% to 11% less than nonsmokers. It's not just a loss of productivity to smoke breaks and poorer health that takes a financial toll, researchers theorize; smokers are perceived to be less attractive and successful as well.

Keeping up appearances


Bad breath, yellow teeth and smelly clothes are just a few of the personal side effects of smoking, and all cost money to correct.

An extra pack of mints or gum a week adds up to about $50 per year. Need your teeth whitened once a year? Brite Smile, which has offices across the country, retails its service for around $600. Most professional-grade teeth whitening products retail for a minimum of $200.

Dry-cleaning bills are likely to be higher also. Clean that suit one extra time a month at a cost of $12 and there goes another $144.

© 2006 Microsoft - All Rights Reserved
Thanks Todd for bringing this story to our attention!!
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roho diablo
Joined: 19 Dec 2008, 00:01

28 Nov 2006, 05:44 #16

Joel,
Next time you could you speed it up a bit? KIDDING. Man, that was fast...
It sure makes me stop and think about how an employer may perceive a smoker as an employee compared to a non smoker. Great info, and yet another motivator...for me anyway.
Thanks Joel! And I watched the "starting the second week" video this morning, since I'm a Glory Week Grad y'know! I'm becoming a pretty good student!
DiImage
I have been quit for 1 Week, 13 hours, 47 minutes and 51 seconds (7 days). I have saved $27.26 by not smoking 113 cigarettes. I have saved 9 hours and 25 minutes of my life. My Quit Date: 11/20/2006 12:00 AM
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Joel
Joined: 18 Dec 2008, 23:57

26 Jan 2007, 22:03 #17

I saw where a newer member wanted to help others who work where he does to quit smoking. One way that would probably be good is to get the human resources department to recognize the costs that they are incurring by their employees smoking and let them know of the free resources that we have online to help their employees to quit. Being that all of our resources are free, it may not be that tough of a sell to get them interested in letting their employees know of our resources. They may even want to print copies of the free e-book at www.whyquit.com/joel/ntap.pdf to give to their employees, or set aside some work time where employees can go through the day by day video lessons at www.whyquit.com/joel when first quitting.
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Joel
Joined: 18 Dec 2008, 23:57

07 Apr 2007, 23:15 #18

From above:

I saw where a newer member wanted to help others who work where he does to quit smoking. One way that would probably be good is to get the human resources department to recognize the costs that they are incurring by their employees smoking and let them know of the free resources that we have online to help their employees to quit. Being that all of our resources are free, it may not be that tough of a sell to get them interested in letting their employees know of our resources. They may even want to print copies of the free e-book at www.whyquit.com/joel/ntap.pdf to give to their employees, or set aside some work time where employees can go through the day by day video lessons at www.whyquit.com/joel when first quitting.


I saw the issue of productivity brought up and thought that this would be a good string to highlight for anyone interested in the economic impact to the companies that they work for. Again, let your personnel department know about the resources we have made available at Freedom and at www.whyquit.com.
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Joel
Joined: 18 Dec 2008, 23:57

26 Apr 2007, 04:07 #19

For people who are working under the illusion that smoking or nicotine use somehow boosts productivity of an individual.

Related video:
"I'll never be as productive again if I quit smoking" Dial up
2.95mb
HS/BB
8.81mb
Length
08:01
Date added
11/24/06
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John Gold
Joined: 20 Jan 2009, 21:43

01 Apr 2008, 10:42 #20

That next pack will cost a
man $222 and a woman $94

"The economic value of the premature mortality due to smoking dwarfs the purchase price of cigarettes. At a 3% discount rate, the mortality cost per pack for men is $222 in $2006. For women, the cost is much lower than that for men but is still large, with a cost per pack of $94 in 2006... The substantial costs per pack stem from two principal factors. First, the discounted expected value of the mortality risks of smoking is high because smoking increases the mortality risk throughout a smoker's life, not just at the end of the smoker's expected lifetime. Second, using VSL [value of statistical life] estimates by age to value the mortality cost indicates that the value of this loss is quite substantial. Notwithstanding their smoking decision, smokers have a high VSL throughout their lives, which in turn implies that their premature mortality imposes enormous personal costs." [Viscusi & Hersch, Journal of Health Economics
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