Economic impact of a digital tobacco cessation program: healthcare savings and productivity gains in a self-insured manufacturing company
Year: 2025
Type: article
Abstract: To quantify the return on investment of a digital tobacco cessation program from an employer perspective by analyzing healthcare cost savings and productivity gains in a real-world workplace setting. This quasi-experimental study analyzed medical claims data from a self-insured US manufacturing company, comparing healthcare costs between program enrollees (n = 153) and matched non-enrollees (n = 3,943) over a 12-month post-enrollment period. Exact and propensity score matching were used to address selection bias, followed by difference-in-differences analysis to control for temporal trends. The study population included employees and spouses continuously enrolled in the company health plan from November 2019 through December 2023. Administrative claims data captured all healthcare services, while productivity benefits were estimated through simulation modeling using published parameters and conservative assumptions for absenteeism reduction and presenteeism improvements. The analysis adopted an employer perspective with a 1-year time horizon, incorporating both direct medical cost savings and indirect productivity gains. Program enrollees demonstrated $950 lower annual healthcare costs compared to matched non-enrollees within the first year of enrollment (95% CI = −$2,022–$122; p = 0.083 using difference-in-differences analysis). Productivity gains contributed an additional $960 per enrollee (95% CI = $446–$1,614), resulting from reduced absenteeism and improved workplace performance. Combined healthcare and productivity savings totaled $1,910 per participant (95% CI = $694–$3,158). At a program cost of $200 per participant, this yielded a return on investment of $9.55 for every dollar invested (95% CI = $3.47–$15.79). Sensitivity analyses confirmed robust positive returns across varying assumptions about abstinence rates and productivity parameters. Using rigorous econometric methods to minimize confounding bias, this analysis demonstrates substantial employer cost savings from implementing a digital tobacco cessation program. The nearly 10-fold return on investment, driven by both healthcare savings and productivity improvements, provides compelling economic evidence for employers evaluating digital health solutions in workplace wellness programs. Employers seek ways to reduce healthcare costs and improve employee productivity. Smoking is a significant driver of healthcare costs and productivity losses for employers. Digital health programs are becoming common workplace benefits, yet little research exists on the economic value of digital smoking cessation programs for employers. This study examined whether a comprehensive digital tobacco cessation program could deliver real financial value to employers. Easily accessible from any web-enabled device, the program provides live chat coaching from quit-smoking experts, personalized and interactive web tools, tailored text message support, cessation medication, and online peer support. Researchers analyzed real-world data from a US manufacturing company, comparing 206 individuals who joined the program with nearly 4,000 individuals who did not participate. To ensure a fair comparison, they used advanced statistical methods to match participants with non-participants on a range of demographic, employment, and medical characteristics. One year after enrollment, program participants generated $950 in healthcare cost savings and $960 in productivity gains through fewer sick days and better work performance, totaling $1,910 in savings per participant. At a cost of $200 per participant, the program delivered nearly $10 in value for every dollar invested by the company, a remarkable return within the first year. Additional analyses testing different assumptions confirmed these savings held up under various scenarios. For employers, this demonstrates that a digital quit-smoking program can be a smart investment that quickly pays dividends through reduced healthcare expenses and improved workforce productivity.
Source: Figshare
Language: English
Subfield: Physiology
Field: Medicine
Domain: Health Sciences
Open Access status: green
OpenAlex ID: W6902236949
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