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Employer-sponsored Tobacco Cessation Programs are Inexpensive and Effective |
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New research funded by the American Legacy Foundation® shows that providing smoking cessation programs is inexpensive and cost-effective for employers. The study, conducted by the actuarial consulting firm Milliman, Inc., shows that employers can provide smoking cessation programs for less than five cents per member per month for a structured telephonic "Quit Line" program.
A wide range of effective programs are available, with more comprehensive cessation coverages that include therapy and selected pharmaceuticals costing from 28 to 45 cents per member per month less than $1 per employee per month. Legacy believes that providing this benefit is the right thing to do as our nation creates more and more smokefree workplaces, campuses and public spaces.
Employers that provide smoking cessation benefits will see reductions in other medical costs, according to the report. While the success rates of the programs vary, annual savings per smoker who quits is approximately $210, by reversing just the short-term consequences of smoking, such as stroke, pneumonia, low-birth-weight babies and childhood respiratory disease. The savings are not one-time they continue to accrue each year after the employee quits.
Generally, the more comprehensive and expensive programs have higher quit rates, with the most intense programs reporting quit rates of about 30 percent.
While the one-year cost savings does not completely offset the annual cost of a smoking cessation program, the low cost and savings do provide a reasonable path to create smokefree workplaces. In addition, smoking cessation was shown to reduce annual medical and life insurance costs almost immediately.
Covering Smoking Cessation as a Health Benefit A Case for Employers examines the short-term reductions in medical and life insurance costs resulting from smoking cessation. The financial picture did not include employer costs associated with cancer, disability payments or other lost work time. The full 29-page report is available on the foundation's website, www.americanlegacy.org.
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