Making the Case for Medicaid Funding of Smoking Cessation Treatment Programs: An Application to State-Level Health Care Savings

Abstract

Findings suggest that making tobacco-dependence treatment freely available to low-income smokers can produce net savings for state governments within a short period of time.

Economic Impact of Financial Incentives and Mailing Nicotine Patches to Help Medicaid Smokers Quit Smoking: A Cost–Benefit Analysis

“…Finally, the present study assumed relatively high relapse rates, whereas these other studies assumed either no relapse, 27 or lower relapse rates. 28 The present study's sensitivity analysis using lower relapse rates showed larger cessation-induced healthcare savings.…”

“…Richard and colleagues 27 found that comprehensive coverage for pharmacotherapy and counseling for Massachusetts Medicaid beneficiaries yielded a net savings with a benefit−cost ratio of 3.12 in 2.5 years. McCallum et al 28 found that covering counseling and nicotine replacement therapy for Alabama Medicaid beneficiaries achieved a net savings with a benefit−cost ratio of 1.95 within 2 years. This study showed that the UC+NP+FI versus UC treatment would yield positive savings, though the savings would not occur as quickly.…”

“…Third, the inflation factor was changed, from 1.17 (Consumer Price Index for medical care) to 1.082 (Personal Consumption Expenditures Index for health care). 57 Fourth, the relapse rates were varied according to the assumption adopted by a cost−benefit study of Alabama's Medicaid smoking-cessation programs 28 and two studies about relapse rates. 58,59 Specifically, it was assumed that the annual relapse rate will be 10% in year 1, 4% in years 2−6, and 2% in years 7−10; it will be zero in year 11 and after.…”

“…27−30 Richard and colleagues 27 estimated that comprehensive coverage for pharmacotherapy and counseling in the Massachusetts Medicaid program yielded medical care savings of $3.12 for every $1 of program costs (i.e., benefit−cost ratio of 3.12) after 2.5 years. McCallum et al 28 estimated that covering counseling and nicotine replacement therapy for Alabama Medicaid beneficiaries achieved a net savings within 2 years, with a benefit−cost ratio of 1.95. Using data from three large MCOs, Warner and colleagues 29 simulated that covering smoking-cessation treatment in MCOs would induce a net loss, costing $0.61 per member per month over a 5-year period.…”

Brief Report: The effect of implementing a tobacco treatment service on adherence to evidence‐based practice in an inpatient state‐owned psychiatric hospital

“…In addition to better physical health outcomes, successful tobacco treatment (TT) can also improve mental health functioning . Moreover, TT decreases rehospitalizations and reduces the likelihood of leaving against medical advice . However, state‐operated/supported psychiatric facilities fall short of providing TT for patients .…”