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Tobacco  Summit Presentation  May 09 Final
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Tobacco Summit Presentation May 09 Final

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  • 1. The Health and Economic Burden of Tobacco Use in Georgia Tim Sweeney Senior Healthcare Analyst Georgia Budget and Policy Institute May 21, 2009
  • 2. What We’ll Discuss…
    • The Problem
      • Smoking rates, economic, & health costs…
    • Solutions
      • Master Settlement Agreement
      • Prevention and education programs
      • Tobacco taxes
  • 3. Tobacco Use and Costs in Georgia
    • Nearly 1 in 5 Georgians are smokers
      • 19.3% of adults, 18.6% of youth (2007)
    • Roughly 1 in 6 GA deaths smoking related
      • Over 10,000 deaths annually
    • Economic costs are significant
      • Over $2 billion in direct medical costs
      • Additional $3.3 billion in yearly productivity losses
        • 00/04 average up 13.7% from 97/01
  • 4. Adult Smoking Rates in GA Since 1985
  • 5. Other Trends
    • Years of potential life lost (YPLL) attributable to smoking*
      • Total up 3.3% from 1997-2001 to 2000-04
      • Rate per 100,000 down 4.4% over same time
    • Overall lung cancer and cardiovascular disease YPLL rates declining**
      • Down 5.9% and 6.7%, respectively, from 2000-04 to 2003-07 periods (not only smoking attributed)
      • *Data from CDC (ages 35 and over) ** Data from GA DPH OASIS system (age 30-75)
  • 6. Smoking-Attributable YPLL Rates in GA -4.44% 4,254.3 4,451.8 Avg. Yearly Total 0.30% 921.4 918.6 Respiratory Diseases -9.65% 1,492.4 1,651.8 Cardiovascular Diseases -2.17% 1,840.5 1,881.4 Malignant Neoplasms Change 2000-2004 1997-2001
  • 7. Tobacco Master Settlement Agreement (MSA)
    • Signed in 1998 by 46 states and 4 tobacco companies
      • Financial payments to states: Over $200 billion expected over first 25 years
      • Advertising & marketing restrictions: Prohibits billboards & transit ads, use of cartoon characters, and certain merchandising and sponsorship
      • Funded the American Legacy Foundation: $300 million per year for 5 years
  • 8. MSA Doesn’t Mandate Prevention Funding
    • Language illustrating intent:
    • “ The [MSA] payments were intended to provide general monetary relief to the States, including past and prospective relief to the States for actual harm caused by cigarette smoking and to fund anti-smoking public health and educational programs.”
  • 9. CDC Recommendations for Prevention
    • A 2007 report recommended GA spend $77 to $169 million annually on prevention and cessation activities
    • Since FY 2001, GA has spent/allocated $95.4 million on prevention, and $5.5 million on an education campaign (mostly in FY 02)
  • 10. MSA Spending on Prevention Since FY 01 >85% of prevention spending occurred from 2001 to 2005
  • 11. MSA Funds in Georgia
    • Georgia has not earmarked funds
      • Allocations are made in the general budget process, by governor and legislature
    • Since 2001, GA has allocated over $1.8 billion in MSA funds to:
      • Healthcare programs: Medicaid & DHR waiver program
      • Rural economic development: OneGeorgia Fund
      • Cancer-related funding: Screening & treatment in DHR/DPH; research & education in BOR
      • Smoking Prevention: DPH
  • 12. MSA Distribution Since 2001
  • 13. FY 2001-2010 MSA Spending in GA (in millions) Total spending FY 01 - FY 10: $1.84 billion
  • 14. State Options …
    • Greater investment in cessation, prevention, and education activities
      • Currently, GA invests less than 3% of the CDC minimum recommendation ($77 M per year)
        • Under 2% of mid-range recommendation of $116.5 M
      • GA’s investment has fallen greatly since 2002
        • Despite tobacco tax increase bringing in additional tobacco-related revenue since FY 2004
  • 15. Share of MSA Directed to Prevention
  • 16. State Options continued …
    • Tobacco tax increases
      • GA’s 37 ¢ per pack tax is the 7 th lowest in the U.S.
      • Price increases reduce consumption, especially among younger smokers
        • 10% price increases reduce youth smoking by 6.5%, adult smoking by 2% (overall 2-5%)
      • $1 increase yields $350 to $450 million in new revenue
        • Could enable greater prevention and education efforts
      • Long term health, economic, and social benefits are significant
  • 17. Short- and Long-Term Benefits of $1 Tax Increase
    • 5-year savings of nearly $50 million in reduced health expenditures
    • Long-term medical savings over $2.6 billion
      • Including reduced expenditures on behalf of state employees and Medicaid clients
    • Reduced smoking saves lives (estimates)
      • 62,800 adults will quit
      • 114,100 fewer future youth smokers
      • 36,500 youth saved from early smoking deaths
  • 18. State Tobacco Taxes in the U.S.
  • 19. Contact Info
    • Tim Sweeney
    • 100 Edgewood Ave, Suite 950
    • Atlanta, GA 30303
    • 404.420.1324
    • [email_address]
    • www.gbpi.org