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Tobacco’s continuing impact on Health Care Costs. Tobacco Use & Exposure is Driving Health Care Costs. $4.5 Billion is spent every year in Mass treating tobacco related illness – that’s 10% of our annual health care expenditures * - PowerPoint PPT Presentation
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Tobacco’s continuing impact on Health Care Costs
Tobacco Use & Exposure isDriving Health Care Costs
$4.5 Billion is spent every year in Mass treating tobacco related illness – that’s 10% of our annual health care expenditures *
Today, each Massachusetts resident pays an average of $889 to cover those smoking-related health care costs *
Examples of Acute Care: Asthma Cancer (Pancreatic, Oral, Bladder, Lung, Breast,
Esophageal) Heart Attacks & Strokes Emphysema
* Department of Public Health, Massachusetts Tobacco Cessation and Prevention Program
Context/Background on Tobacco Control
Policies According to the CDC & MA DPH’s Tobacco Cessation and
Prevention Program, there are five essential tools to virtually end smoking, improve health and save billions of dollars in health care costs.
1) Ensure that all residents have access to effective cessation services2) Protect young people from tobacco industry tactics3) Implement evidence-based pricing strategies4) Ensure that all health care visits include tobacco interventions5) Promote a smoke-free environment for all residents
Progress These policies and systems have brought the MA smoking rate
in 2010 to 15%, one of the lowest smoking rates in the country. *
* Department of Public Health, Massachusetts Tobacco Cessation and Prevention Program
Tobacco Use is Still a Problem
While we have made progress in Massachusetts, 222 MILLION packs of cigarettes are still sold every year in our state
Use of OTP (Other Tobacco Products) is on the rise, especially among youth
This use continues to drive health care costs
Evidence-based Pricing Raises Revenue
and Decreases Utilization
The number of packs sold in MA decreased 59% from 547M in FY92 to 222M in FY10
State excise tax revenue from cigarettes increased 6% annually from FY92 to FY10
OTP (Other Tobacco Products)
Discussion, what are OTPs?
Closing the tax loophole
OTP use among adolescents:
From FY02 to FY10, revenue from the excise tax on smokeless tobacco increased 6% annually
From FY02 to FY10, revenue from the excise tax on cigars increased 18% annually
$1.25/pack increase + OTP Equalization $125 Million in new revenue An excise tax increase would also reduce
smoking and prevent key healthcare costs
* Source: Campaign for Tobacco-Free Kids 10.07.10 / Ann Boonn, May 6, 2011
Increasing tobacco excise taxes will:
Bolster Payment Reform by including a critical form of prevention and wellness
Generate significant revenue ($125 million)
Opportunity to fund tobacco control, health insurance programs, and small business relief