A new study conducted by researchers at Penn State University and released by the American Lung Association found that states that invest in smoking cessation programs see a positive economic return. In Maine, the study estimated that for every $1 spent on helping smokers quit, the Maine economy will see a return of $1.41. The study also found that the annual direct medical and productivity costs of smoking to Maine's economy exceed $1.5 billion. The ALA believes the study reinforces the value of Maine's investment in tobacco treatment programs and services.

1. Contact: Edward Miller
emiller@lungne.org
207-624-0308
New Study Finds Positive Return on State Investment in Smoking
Cessation Treatments
Study provides additional support for Maine’s investment in smoking cessation
treatment initiatives.
Augusta, ME, (September 14, 2010) — A new study released today by the American Lung
Association, and conducted by researchers at Penn State University, finds that helping smokers
quit not only saves lives but also provides significant economic benefits for states that invest in
smoking cessation treatment.
In Maine, the ALA study suggested that the annual direct costs to the economy attributable to
smoking were in excess of $1.5 billion including $667 million in direct medical expenditures.
Other contributing costs include workplace productivity losses and premature death losses. While
the retail price of a pack of cigarettes in Maine is on average $6.46, the combined medical costs
and productivity losses attributable to each pack of cigarettes sold are approximately $26.16 per
pack of cigarettes.
The study, titled Smoking Cessation: the Economic Benefits, provides a nationwide cost-benefit
analysis that compares the costs to society of smoking with the economic benefits to society of
providing cessation (quit-smoking) coverage. The study comes at an important time, as important
cessation benefit provisions are being implemented at the federal and state levels as a result of
healthcare reform legislation. In Maine, it is estimated that for every dollar spent on helping
smokers quit, the Maine economy will see a return of $1.41.
ALA believes that this study points to the need for Maine to maintain its investment in
comprehensive smoking cessation and prevention programs.
“This report not only demonstrates that tobacco use is a significant net drain on the state's
economy but also reinforces the value of the investment Maine is making in tobacco treatment,
said Diane Haskell, Chair of the ALA in Maine Leadership Board. “Much of this treatment is
provided through the Fund for Healthy Maine's support of the Center for Tobacco Independence,
which operates one of the nation's most successful Helplines for smokers.”
Haskell also acknowledged the work of the State’s MaineCare program to improve the tobacco
treatment benefit offered to all members. Tobacco related illnesses cost the MaineCare program
over $200 million each year.
A comprehensive cessation benefit includes all seven medications and three types of counseling
recommended by the U.S. Public Health Service for tobacco cessation. Only six states now
provide comprehensive coverage for Medicaid recipients: Indiana, Massachusetts, Minnesota,
Nevada, Oregon and Pennsylvania.

2. The Lung Association also recommends that all private insurance plans and employers offer
comprehensive cessation coverage and encourages states to require them to cover these
treatments. Only seven states have such requirements now: Colorado, Maryland, New Jersey,
New Mexico, North Dakota, Oregon and Rhode Island.
About the Study
Researchers at Penn State University with expertise in health economics and administration
performed this cost-benefit analysis using government and other published data. The analysis
compares the costs of providing smoking cessation treatments (including price of medications and
counseling and lost tax revenue) to the savings possible if smokers quit (including savings in
health care expenditures, premature death costs, and productivity losses).
Funding for the study was provided through an unrestricted research grant from Pfizer Inc.
To view the entire study log onto: www.lungusa.org/cessationbenefits.
About the American Lung Association
Now in its second century, the American Lung Association is the leading organization working to
save lives by improving lung health and preventing lung disease. With your generous support, the
American Lung Association is “Fighting for Air” through research, education and advocacy. For
more information about the American Lung Association or to support the work it does, call 1-
800-LUNG-USA (1-800-586-4872) or visit www.LungUSA.org.
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