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Tobacco is the leading cause of preventable death in the United States, and is responsible for $200 billion annually in health care costs and lost productivity. A new brief from the Robert Wood Johnson Foundation (RWJF) highlights how initial investments in comprehensive tobacco cessation programs can save significant dollars over time. Case studies of state tobacco cessation programs—which may include smoke-free workplace rules and higher taxes on tobacco products, among other measures—show a return on investment of as high as $50 for every $1 spent.
The brief, part of RWJF’s Health Policy Connection series, also describes how tobacco cessation programs are often underfunded or cut despite positive returns—particularly during economic slowdowns. The $206 billion Master Settlement Agreement between tobacco companies and states in 1998 is particularly notable, with less than 2 percent of the 2012 portion of the settlement being spent on prevention programs.
- Tobacco use is the leading cause of preventable death in the United States and costs the nation $96 billion annually in health care costs and an additional $97 billion in lost productivity.
- Tobacco prevention and cessation efforts, especially well-funded and comprehensive programs, are proven to reduce tobacco use and lower associated healthcare costs, providing a strong return on investment (ROI).
- Despite revenue streams from tobacco use and high ROIs, the most successful prevention programs have been cut repeatedly over the past five years.
Health Policy Snapshot
Two-page briefs providing insight and analysis on key issues affecting health and health care in the United States.
View all$96
billion is spent each year on tobacco-related health care costs