The Health and Economic Burden of Tobacco Use in Georgia Tim Sweeney   Senior Healthcare Analyst Georgia Budget and Policy...
What We’ll Discuss… <ul><li>The Problem </li></ul><ul><ul><li>Smoking rates, economic, & health costs… </li></ul></ul><ul>...
Tobacco Use and Costs in Georgia <ul><li>Nearly 1 in 5 Georgians are smokers </li></ul><ul><ul><li>19.3% of adults, 18.6% ...
Adult Smoking Rates in GA Since 1985
Other Trends <ul><li>Years of potential life lost (YPLL) attributable to smoking* </li></ul><ul><ul><li>Total up 3.3% from...
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 -9.6...
Tobacco Master Settlement Agreement (MSA) <ul><li>Signed in 1998 by 46 states and 4 tobacco companies </li></ul><ul><ul><l...
MSA Doesn’t Mandate Prevention Funding <ul><li>Language illustrating intent: </li></ul><ul><li>“ The [MSA] payments were i...
CDC Recommendations for Prevention <ul><li>A 2007 report recommended GA spend $77 to $169 million annually on prevention a...
MSA Spending on Prevention Since FY 01 >85% of prevention spending occurred from 2001 to 2005
MSA Funds in Georgia <ul><li>Georgia has not earmarked funds </li></ul><ul><ul><li>Allocations are made in the general bud...
MSA Distribution Since 2001
FY 2001-2010 MSA Spending in GA (in millions) Total spending FY 01 - FY 10: $1.84 billion
State Options … <ul><li>Greater investment in cessation, prevention, and education activities </li></ul><ul><ul><li>Curren...
Share of MSA Directed to Prevention
State Options continued … <ul><li>Tobacco tax increases </li></ul><ul><ul><li>GA’s 37 ¢ per pack tax  is the 7 th  lowest ...
Short- and Long-Term Benefits of $1 Tax Increase <ul><li>5-year savings of nearly $50 million in reduced health expenditur...
State Tobacco Taxes in the U.S.
Contact Info <ul><li>Tim Sweeney </li></ul><ul><li>100 Edgewood Ave, Suite 950 </li></ul><ul><li>Atlanta, GA 30303 </li></...
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Tobacco Summit Presentation May 09 Final

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Tobacco Summit Presentation May 09 Final

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

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