New Study: Secondhand Smoke Costs U.S. Billions Annually

August 17, 2005 (Atlanta) - Secondhand smoke imposes significant costs on nonsmokers and society, according to a recent study by researchers at the J. Mack Robinson College of Business at Georgia State University and the Society of Actuaries (SOA). The study concluded that the annual cost of excess medical care, mortality and morbidity from secondhand smoke exposure in the U.S. is approximately $10 billion. 

The study explores the economic effects of secondhand smoke for a variety of medical conditions in which secondhand smoke exposure has shown to increase the incidence of illness. Among the many conditions examined include, but are not limited to, lung cancer, asthma, chronic pulmonary disease and coronary artery disease.

By relating where the exposure occurred - either at home, work or in both locations - to the level of increase in incidence, the Robinson College  research team determined the number of additional medical cases in the U.S. related to secondhand smoke exposure. They further concluded that these additional cases resulted in nearly $5 billion in direct medical costs and approximately $5 billion in indirect medical costs, such as lost wages per year.

"We wanted to understand the difference in cost that would occur if exposure to environmental tobacco smoke were simply eliminated," said Donald F. Behan, lead researcher for Robinson and Fellow of the SOA. "While the effects of secondhand smoke are subtle in comparison to active smoking, the number of people exposed is so large that the costs are substantial. As our research shows, even though exposure to secondhand smoke has been greatly reduced over the last 15 years, it remains a public health concern with an economic impact in the U.S. of many billions of dollars per year."

These findings were gathered from the literature review of the health effects of environmental tobacco smoke and on the basis of other available data, including hundreds of other studies. While many of the studies document a health risk associated with secondhand smoke exposure, few have attempted to quantify an economic consequence of the risk.

"Actuaries are adept at measuring risks and their implications and this unique study will lead to a better understanding of the financial impact of environmental tobacco smoke exposure," noted Tim Harris, Fellow of the SOA and chairman of the project's oversight committee. "We do not expect our findings to be the last word on the subject. In fact, we hope that this is just the beginning with our study being the driver for more research of this kind on this very important societal issue."

For more information, visit the SOA website at http:www.soa.org/ccm/content/areas-of-practice/life-insurance/research/economic-effects-of-environmental-tobacco-smoke-SOA.

 

The J. Mack Robinson College of Business is one of the top-ranked business schools in the nation. The College's Flex (part-time) MBA program has been listed in the top ten by U.S. News for the past ten consecutive years and its undergraduate business program is ranked among the top 50 in the nation. The College's Executive MBA program is listed on The Financial Times list of the world's top-ranked offerings and BusinessWeek magazine ranks it 24th in the world. Georgia State University's Robinson College of Business has an enrollment of more than 7000 students and is located in downtown Atlanta. 

For more information, contact:
Tammy DeMel
Associate Director, Communications and External Affairs
J. Mack Robinson College of Business
404/413-7078 (voice)
404/702-9743


 

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