The Economic Costs of Smoking

The Economic Costs of Smoking

Joel
Joined: 18 Dec 2008, 23:57

23 Jan 2003, 21:14 #1

I am lifting an article John posted last April about the costs of smoking. I have been doing a major push to employers in my area to send their employees to our Health Department's Stop Smoking Clinics. These programs are free to all of these people. I have been referring the Human Resources Departments to different areas of WhyQuit.com, and on the chance that some of them make their way here to Freedom, I thought it would be a good idea to have some materials that might influence them to promote these programs to their employees. It will cost the company and the employees nothing and may just save them lots of money and more important to the individual smoker's, it may just save their lives.

CDC Estimates Cost of SmokingBy ERIN McCLAM
Associated Press Writer

April 11, 2002, 2:48 PM EDT

ATLANTA -- Each pack of cigarettes sold in the United States costs the nation $7 in medical care and lost productivity, the government said Thursday.

The study by the Centers for Disease Control and Prevention put the nation's total cost of smoking at $3,391 a year for every smoker, or $157.7 billion. Health experts had previously estimated $96 billion.

Americans buy about 22 billion packs of cigarettes annually. The CDC study is the first to establish a per-pack cost to the nation.

The agency estimated the nation's smoking-related medical costs at $3.45 per pack, and said job productivity lost because of premature death from smoking amounted to $3.73 per pack, for a total of $7.18.

The average cost of a pack of cigarettes in 1999 was $2.92.

"There's a big difference in the cost to society and what society is getting back in tax," said the CDC's Dr. Terry Pechacek. "We believe society is bearing a burden for the individual behavioral choices of the smokers."

The CDC said it analyzed expenses, both personal and for the health care industry, and used national medical surveys to calculate the costs to the nation.

The agency also reported that smoking results in about 440,000 deaths a year in the United States, up from the government's previous figure of 430,000, established in the early 1990s. The new study was conducted from 1995 to 1999.

"The fact that nearly half a million Americans lose their lives each year because of smoking-related illnesses is a significant public health tragedy," said Dr. David Fleming, the CDC's acting director.

A spokesman for tobacco giant Brown & Williamson objected that the study presents the figures in a vacuum, without comparing smoking to the financial burdens other people -- nonsmokers with diabetes, for example -- place on society.

"What does that number mean?" spokesman Mark Smith said. "It doesn't mean anything. It's bordering on meaningless."

Representatives from the nation's two other leading tobacco companies -- Philip Morris and R.J. Reynolds -- did not immediately return calls for comment.

Among other findings:

* Smoking causes an average man to lose more than 13 years of life, and an average woman to lose 14.5 years.

* Smoking during pregnancy causes about 1,000 infant deaths each year.

* Lung cancer causes the most deaths among smokers, following by heart disease and lung disease.

* Men account for about 60 percent of smoking deaths -- 264,000 a year, compared with 178,000 deaths among women.

* __

On the Net:

CDC tobacco site: http://www.cdc.gov/tobacco Copyright © 2002, The Associated Press

Here are some estimates going back to 1983:

"Seattle University economist William L. Weis reported in 1983 that smokers devoted 6 percent of their workday to the ritual, took 50 percent more sick days, and made 50 percent greater use of the health-care system than non-smokers. If they hired only the latter instead, Weis added, employers would shave their personnel costs by 20 percent, their insurance premiums by 30 percent, their office maintenance by 50 percent, and their disability outlays by 70 percent, for a claimed total savings of as much as $4,600 per worker per year." Ashes to Ashes, p. 553

Here is a breakdown down done a few year later by the same investigator:
  • Each smoker costs his or her employer more than $4,000 a year, according to figures compiled by William L. Weis, assistant professor at the Albers Graduate School of Business, Seattle, Washington. Breakdown of his cost estimates include:
    • Absenteeism runs 2.2 more days each year, at a cost of $110 a day (Based on a personal cost of $20,000 per employee);
    • Medical-care benefits are used 50 percent more than by nonsmokers, at an annual cost of $230;
    • Earnings are lost to the employer because of the smoker's sickness and /or early death at a cost of $230;
    • Accidents cost an estimated $45;
    • Fire insurance costs go up an estimated $45;
    • Lost productivity for smoking breaks, etc., is estimated at $1,820; and
    • Damage or maintenance for smoke pollution costs $1,000.
(Facts and Figures - 1994, American Cancer Society 5008.93 Copyright 1993, American Cancer Society; Economic Impact of Smoking In the Workplace.)
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Joel
Joined: 18 Dec 2008, 23:57

21 May 2003, 22:11 #2

I saw where the issue of if cigarettes cost society as much as other high profile conditions there would be more action taken to put an end to smoking. This sadly is not the case. Nicotine addiction costs the world billions of dollars and worse than this, millions of lives each year.
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Joel
Joined: 18 Dec 2008, 23:57

02 Jan 2004, 22:11 #3

Image I just was addressing a post that talked about cigarette economics--the costs that the individual smoker incur. I thought this article was good at showing the cost to the society, and specifically the business community imposed by cigarette smoking.
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Joel
Joined: 18 Dec 2008, 23:57

07 May 2004, 21:05 #4

Image Further information about the costs of smoking breaks (refer to post Smoking Breaks)

Lifted from above:
  • Lost productivity for smoking breaks, etc., is estimated at $1,820
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John Gold
Joined: 20 Jan 2009, 21:43

12 Jun 2004, 22:41 #5

Low-income earners spend
most on smokes, study says
Last Update: Friday, June 11, 2004. 4:31pm (AEST)
Australian Broadcasting Corporation (ABC)
Health groups are calling on the New South Wales Government to introduce tighter controls on tobacco after research shImageowing a reduction in smoking could reduce the impact of poverty.

The study by economists at Macquarie University shows poorest one fifth of smoking-households spend 18 per cent of their income on cigarettes while the richest spend only three per cent.

New South Wales Council of Social Service director Gary Moore says a reduction in spending on smoking would create a better quality of life for low income families.

"Something like $56 a week would be put back into a low-income household's budget for obviously expenditure on other things from energy, water, transport and rent," he said.

Health organisations say the only way to achieve this is to ban smoking in pubs and launch an anti-tobacco advertising campaign.
© 2004 Australian Broadcasting Corporation
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Joel
Joined: 18 Dec 2008, 23:57

16 Jun 2004, 02:39 #6

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

09 Aug 2004, 19:59 #7

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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GrumpyOMrsS Gold
Joined: 20 Jan 2009, 21:48

19 Jan 2005, 09:23 #8

Image
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GrumpyOMrsS Gold
Joined: 20 Jan 2009, 21:48

19 Jan 2005, 09:27 #9

From: ImageImagekattatonic1 (Original Message) Sent: 1/18/2005 8:02 PM
ImageALERT!
Cigarette prices going up in Ontario, Canada again tonight at Midnight Eastern Standard Time!
Environment Canada continues its Severe Weather Warning with tonight's temperature to continue at -16°C.
Make sure you bundle up when you run out to stock up!

Oh wait! This is Freedom.
Nevermind.
Image
Heh.
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Joel
Joined: 18 Dec 2008, 23:57

26 Jan 2005, 07:13 #10

Image
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