Smokers Could Save Medicaid System Around $10 Billion

A study "Saving Lives, Saving Money II" carried out by RTI International and funded by the American Legacy foundation, determined that Smokers on Medicaid could save the system about $10 Billion in five years, if they would quit smoking. The costs for the system could be cut by 5.6% through an effective smoking prevention and cessation program.

The study is an analysis of the costs to state Medicaid programs caused by young smokers over the course of their lives. It is an update to the American Legacy foundation's report "Saving Lives, Saving Money: Why States Should Invest in a Tobacco-Free Future" (2002).

The new report states Medicaid spending related to current smoking spans from $1.5 billion in the state of New York to $15 million in Wyoming. However, the cost of Medicaid could be, across all states, $9.7 billion less, if the smokers in the system would successfully quit smoking.

According to the study, if the now 24-year-olds could be prevented from all smoking through the remainder of their lives, Alaska and Vermont for example could save $1.4 million in Medicaid costs, Texas $125 million.

Furthermore, the report determined that female smokers cost the system more than male smokers; $1,372 compared to $6. 69% of the people on Medicaid are female.