The Effect of a $2.00 Per Pack Increase in the Tobacco Excise Tax on Smoking and Healthcare Expenditures: 2017-2020
Year: 2016
Type: preprint
Abstract: A $2.00 per pack increase in the tobacco excise tax in California will reduce smoking prevalence and save billions of dollars in healthcare expenditures Smoking prevalence in California will be more than 2 percentage points lower in 2020 with the tobacco tax increase• Without the tax increase, 9.4% of California adults will smoke in 2020• With the tax increase, just 7.1% of California adults will smoke in 2020, and the remaining smokers will smoke less• Smoking rates will drop quickly because of the combined effect of higher prices and a larger reinvigorated tobacco control program• As fewer people smoke, there will be fewer smoking-caused deaths and fewer nonsmokers exposed to secondhand smokeThe tobacco tax increase will save billions of dollars in healthcare expenditures because fewer people will get sick• Annual savings in healthcare expenditures will be $900 million in 2017, increasing to $1.12 billion in 2020 • Cumulative savings will total $4.1 billion between 2017 and 2020 • Hospitalization costs will be $2 billion lower • Outpatient costs will be $1 billion lower • Medication costs will be $650 million lower
Authors: Wendy Max, Hai-Yen Sung, James Lightwood
Language: English
Field: Medicine
Domain: Health Sciences
Open Access status: green
OpenAlex ID: W2553413649