Tobacco-Prevention Programs Save Medicaid Dollars

Tobacco-Prevention Programs Save Medicaid Dollars
May 2, 2002

Research Summary

A report from the American Legacy Foundation shows that U.S. states can save taxpayer dollars by funding tobacco-prevention programs, Substance Abuse Funding News reported April 9.

According to the study, "Saving Lives, Saving Money: Why States Should Invest in a Tobacco-Free Future," smoking-related Medicaid costs more than doubled from 1993-2001. But the report also showed that by decreasing smoking rates by 25 percent through prevention programs, states would reduce Medicaid costs connected to smoking-related healthcare expenses by $552 million a year.

The report does not include additional taxpayer savings from other smoking-related spending decreases, such as Medicare, Medicaid costs paid by the federal government, or government-paid health insurance.

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