According to research from the George Washington University School of Public Health and Health Services, including comprehensive tobacco cessation benefits in Medicaid insurance coverage could result in significant program savings.
The research compared the potential savings to the cost of such benefits, and found that the resulting decrease in cardiovascular health problems and hospital visits made a substantial difference.
"Smoking is the leading cause of preventable death in the United States," said professor of Health Policy and project lead Leighton Ku. "Millions of low-income smokers in the U.S. are insured by Medicaid. In 2004, smoking-related Medicaid expenditures for all states combined was $22 billion, which represented 11 percent of all Medicaid spending."
Employers may find that similar incentive programs may have similar benefits. Additionally, the cost of employee benefits may be partly offset by increased productivity and engagement resulting from employee wellness.
The effectiveness of tobacco cessation programs or other specific programs as cost-saving measures may depend on how widespread a given behavior is among a particular group of employees, among other factors. Research and employee benefit consulting services may help an employer determine, create and administer appropriate programs.
