2/27/24, 12:48 AM
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`Costs and Expenditures
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`Smoking & Tobacco Use
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`Costs and Expenditures
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`Smoking costs the United States billions of dollars each year.
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`1
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`Cigarette smoking cost the United States more than $600 billion in 2018, including:
`More than $240 billion in healthcare spending,
`2,3
`Nearly $185 billion in lost productivity from smoking-related illnesses and health conditions,
`Nearly $180 billion in lost productivity from smoking-related premature death,
`$7 billion in lost productivity from premature death from secondhand smoke exposure. *
`4,5
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`3,4
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`3
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`The tobacco industry spends billions of dollars each year on cigarette and smokeless tobacco advertising and
`promotions.
`6,7
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`$8.2 billion was spent on advertising and promotion of cigarettes and smokeless tobacco combined—about $22.5
`million every day, and nearly $1 million every hour. Smokeless tobacco products include dry snu, moist snu,
`plug/twist, loose-leaf chewing tobacco, snus, and dissolvable products.
`Price discounts to retailers account for 74.7% of all cigarette marketing (about $5.7 billion). These are discounts paid in
`order to reduce the price of cigarettes to consumers.
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`State spending on tobacco prevention and control does not meet CDC-recommended levels.
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`1,8,9
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`States have billions of dollars from the taxes they put on tobacco products and money from lawsuits against cigarette
`companies that they can use to prevent smoking and help smokers quit. Right now, though, the states only use a very
`small amount of that money to prevent and control tobacco use.
`In scal year 2020, states will collect $27.2 billion from tobacco taxes and settlements in court, but will only spend
`$740 million in the same year. That’s only 2.7% of it spent on programs that can stop young people from becoming
`smokers and help current smokers quit.
`8
`Right now, not a single state out of 50 funds these programs at CDC’s “recommended” level. Only three states (Alaska,
`California, and Maine) give even 70% of the full recommended amount. Twenty-eight states and the District of
`Columbia spend less than 20 percent of what the CDC recommends. One state, Connecticut, gives no state funds for
`prevention and quit-smoking programs.
`8
`Spending 12% (about $3.3 billion) of the $27.2 billion would fund every state’s tobacco control program at CDC-
`recommended levels.
`8
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`References
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`https://www.cdc.gov/tobacco/data_statistics/fact_sheets/fast_facts/cost-and-expenditures.html
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`JLI Ex. 2015, Page 1 of 2
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`2/27/24, 12:48 AM
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`Costs and Expenditures
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`1. U.S. Department of Health and Human Services. The Health Consequences of Smoking—50 Years of Progress: A
`Report of the Surgeon General. Atlanta: U.S. Department of Health and Human Services, Centers for Disease Control
`and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Oce on Smoking and Health,
`2014 [accessed 2018 Feb 22].
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`2. Xu X, Shrestha SS, Trivers KF, Ne L, Armour BS, King BA. U.S. Healthcare Spending Attributable to Cigarette Smoking
`in 2014. Preventive Medicine 2021 (150): 106529. https://doi.org/10.1016/j.ypmed.2021.106529
`.
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`3. Shrestha SS, Ghimire R, Wang X, Trivers KF, Homa DM, Armour BS. Cost of Cigarette Smoking Attributable Productivity
`Losses, United States, 2018
`. Forthcoming at Am J Prev Med 2022.
`
`4. U.S. Department of Health and Human Services, 2014. The Health Consequences of Smoking—50 Years of Progress: a
`Report of the Surgeon General. U.S. Department of Center for Chronic Disease Prevention and Health Promotion,
`Oce on Smoking and Health, Atlanta. https://www.cdc.gov/tobacco/sgr/50th-anniversary/index.htm.
`5. Max W, Sung HY, Shi Y. Deaths from secondhand smoke exposure in the United States: economic implications.
`American Journal of Public Health 2012;102(11): 2173–80. doi: 2105/AJPH.2012.300805
`.
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`*The $7 billlion number is based on original Max, et al estimate , updated to 2018 dollars.
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`6. U.S. Federal Trade Commission (FTC). Federal Trade Smokeless Tobacco Report for 2019 [PDF – 1 MB]
`Washington: Federal Trade Commission, 2021 [accessed 2021 Apr 27].
`7. U.S. Federal Trade Commission (FTC). Federal Trade Smokeless Tobacco Report for 2019 [PDF – 1MB]
`Washington: Federal Trade Commission, 2021 [accessed 2021 Apr 27].
`8. Campaign for Tobacco-Free Kids. Broken Promises to Our Children: The 1998 State Tobacco Settlement 20 Years Later
`. Washington: Campaign for Tobacco Free Kids, 2018 [accessed 2019 Jan 7].
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`9. Centers for Disease Control and Prevention. Best Practices for Comprehensive Tobacco Control Programs–2014.
`Atlanta: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center
`for Chronic Disease Prevention and Health Promotion, Oce on Smoking and Health, 2014 [accessed 2018 Feb 22].
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`Last Reviewed: July 28, 2022
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`https://www.cdc.gov/tobacco/data_statistics/fact_sheets/fast_facts/cost-and-expenditures.html
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