The High Price of Smoking
By julianne, August 11, 2011, Health
The immediate cost of smoking is usually associated with the price of cigarette packs and cartons, but the habit also negatively affects nearly every part of a person’s financial health. From the obvious costs like healthcare and higher insurance premiums to “hidden” ones, smoking can reduce people’s lifetime earnings while also decreasing their life span.
Cigarette Costs
Americans spent almost $90 billion on tobacco products in 2006, according to the U.S. Department of Agriculture. Individual costs based on how much a person smokes shows the true impact on each smoker’s wallet. In 2010, the Centers for Disease Control and Prevention found the average price of a cigarette pack was $4.80, including taxes. For someone that smokes one pack a day, the annual cost is $1,752. Over 30 years this would be $52, 560. A two-pack-a-day habit costs $288 a month and $3,456 each year. Even just smoking half a pack a day costs $876 a year. Cigarette taxes rise every year in states struggling to plug budget gaps with more revenue, so the cost to smoke differs depending on where you live. In 2010, New York state had the highest per pack tax of $4.35. Missouri only taxed cigarettes at 17 cents per pack.
Medical Costs
The CDC estimates the real cost per cigarette pack is closer to $10.47 once the expenses for treating chronic respiratory and cardiac illnesses are factored in. From 2000 to 2004, the agency found that smoking caused $193 billion in economic losses. Nearly half was due to medical costs, and the rest was lost productivity from missed work days due to sickness. Smokers tend to visit the doctor more often so even with insurance coverage, they pay more in deductibles, co-pays and for medication. It is estimated smokers pay nearly $300 more per year than nonsmokers in healthcare costs. On average, smokers live 10 years less than nonsmokers. Just smoking one pack a day for a year shaves almost two months off an average person’s life span.
Cost to Quit
It is surprising to some that the cost to quit smoking is also high, especially since most people have to try two or three times before they succeed. Various treatments like prescription medication, nicotine therapy with patches, gum or inhalers, and hypnotherapy adds up. The American Legacy Foundation states that each attempt to quit can cost around $1,500. However, local health agencies often offer free counseling and reduced price or free medication and nicotine replacement devices that can aid in smoking cessation. Some insurance companies offer incentives and discounts on smoking cessation products as well. Even though quitting can be expensive, the long-term health and economic benefits outweigh the short-term costs.
Insurance Increases
Many people know that being a smoker increases health and life insurance costs, but the habit can also cause an increase in other types of insurance premiums. Even the most basic health insurance plans ask if an applicant is a smoker because tobacco use leads to higher healthcare costs. Smokers usually have to pay a higher monthly premium than a nonsmoker of the same age, gender and weight. Health insurance companies also believe based on research that smokers have a tendency for high risk behavior and will file more insurance claims than nonsmokers. Smokers pay more than $1,000 a year in life insurance premiums because they are statistically more likely to die at a younger age. Car insurance rates are higher for smokers because they tend to be more distracted while driving and smoking, which can lead to accidents. Finally, home insurance costs more if you have a smoking habit because there is a higher risk of fire. Nearly 20,000 house fires are caused by cigarettes every year, according to the United States Fire Administration.
Even More Costs
There are several “hidden” costs of smoking that many people may not realize. Smoking can decrease the resell value of your home and vehicle because of the pervasive smoke smell. Nicotine stains and burns can also detract from the value of a house or car. Smokers tend to spend more on dental care because nicotine damages the gums and teeth. Tobacco also causes teeth staining. Studies have shown that on average, smokers earn less money. Research indicates smokers earn 4 to 11 percent less than nonsmokers. Missing work because of tobacco-related health problems is one reason, but some companies also will not hire a person who smokes.
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