CHICAGO, Aug. 17 /PRNewswire/ — Secondhand smoke imposes significant costs on nonsmokers and society, according to a recent Society of Actuaries (SOA) study that concluded the annual cost of excess medical care, mortality and morbidity from secondhand smoke exposure in the U.S. is approximately $10 billion. This includes approximately $5 billion in direct medical costs and approximately $5 billion in indirect costs, such as lost wages, reduced services and costs associated with disabilities per year.
The study is one of the first to explore the economic effects of secondhand smoke exposure for a variety of medical conditions in which it has shown to increase the incidence of illness. The many conditions examined include, but are not limited to, lung cancer, asthma, and chronic pulmonary and coronary artery diseases. This research was developed by the SOA in partnership with the Robinson College of Business at Georgia State University.
The study determined both the direct and indirect costs associated with a specific medical condition.
Estimated Direct Medical Cost of Exposure to Secondhand Smoke per Year for
the U.S. Population, Based on Present Values
Category Morbidity Cost ($U.S. million)
Cancer Lung cancer 191
Cervical cancer 14
Respiratory system Asthma 773
Otitis media (Ear infection) 53
Chronic pulmonary disease 1,215
Cardiovascular system Coronary heart disease 2,452
Perinatal manifestations Low birth weight 284
Total 4,982
Estimated Economic Value of Lost Wages, Fringe Benefits, and Services per
Year for the U.S. Population Excluding Infants, Based on Present Values
Category Morbidity Cost ($U.S. million)
Cancer Lung cancer 469
Cervical cancer 110
Respiratory system Asthma (disability only) 161
Chronic pulmonary disease 886
Cardiovascular system Coronary heart disease 2752
Perinatal manifestations Low birth weight 174
Postnatal manifestations Sudden infant death syndrome 131
Total 4,683
By relating where secondhand exposure happens — either at home, work or in both locations — to the level of increase in incidence, the research team determined the number of additional medical cases in the U.S. related to secondhand smoke exposure.
"We wanted to understand the difference in cost that would occur if exposure to environmental tobacco smoke were simply eliminated," said Donald Behan, Fellow of the SOA and lead researcher for the project. "While the health effects of secondhand smoke are reduced 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 by reviewing more than 200 published studies or reports that date back as far as 1964 on the health effects of environmental tobacco smoke. 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 secondhand smoke exposure," said Tim Harris, Fellow of the SOA and chairman of the project's oversight committee. 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 Society of Actuaries is an educational, research and professional organization dedicated to serving the public and its 18,000 members. The SOA's vision is for actuaries — business professionals who analyze the financial consequence of risk — to be recognized as the leading professionals in the modeling and management of financial risk and contingent events. The SOA's mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, business and societal problems involving uncertain future events. To learn more, visit http://www.soa.org .
SOURCE Society of Actuaries
source: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-17-2005/0004089956&EDATE= 17aug2005
Cigarette smoking has long been identified as a major cause of preventable death and has been factored into underwriting decisions and individual risk ratings. The 2004 Surgeon General’s Report (U.S. Dept. of Health and Human Services, 2004) reiterates that over 400,000 Americans die each year as a result of cigarette smoking and that, on average, a smoker loses about 12-13 years of life expectancy.
In this paper the authors combine published data on mortality and morbidity associated with exposure to secondhand smoke with published estimates of medical costs for the related conditions and standard estimates of economic value to derive estimates of the medical and other costs associated with exposure to secondhand smoke. We performed a literature review of the effects of ETS on mortality and morbidity, and on the basis of the available data, we calculated quantitative estimates of total ETS-related excess morbidity and mortality in the U. S. population. As documented in Appendix I, chronic exposure to secondhand smoke has been established as a cause for many of the same diseases caused by active smoking. While the number of deaths caused by chronic exposure to secondhand smoke is substantially less than the number caused by active smoking, the public health concern is elevated because secondhand--smoke deaths are occurring among individuals who have decided not to smoke, and thus their increased risk for disease and death is involuntary. We have also identified areas for consideration by insurance companies that might wish to evaluate the feasibility of using exposure to ETS as an underwriting criterion.
In terms of relative harm caused by active smoking versus chronic exposure to secondhand smoke, there are not any clearly agreed-to metrics, however most scientists would agree that the risk of death from chronic exposure to secondhand smoke is likely an order of magnitude lower than that of active smoking. The Centers for Disease Control and Prevention (CDC) estimates 440,000 active smokers (out of 50 million) die per year compared to around 50,000 passive smokers (out of 150 million). Thus, while deaths from passive smoking are tragic, real and preventable, their actuarial impact is less (possibly by an order of magnitude) compared to deaths of active smokers.
source: http://www.soa.org/ccm/cms-service/stream/asset?asset_id=10076125&g11n 17aug2005
NEW YORK — The effects of secondhand smoke in the United States cost nearly $10 billion every year, according to a study released on Wednesday.
The Society of Actuaries said that the direct costs of secondhand smoke exposure are $4.98 billion, including expenses related to the treatment of heart disease, chronic pulmonary disease, lung cancer, asthma and other sicknesses.
The study also detailed indirect costs of $4.68 billion, stemming from lost wages, reduced services and costs associated with disabilities.
"While the health effects of secondhand smoke are reduced in comparison to active smoking, the number of people exposed is so large that the costs are substantial," Society of Actuaries fellow Donald Behan said in a statement.
The group measured the costs by examining more than 200 studies that have been published since 1964 on the effects of environmental tobacco smoke.
source: http://www.alertnet.org/thenews/newsdesk/N17672286.htm 17aug2005
The effects of secondhand tobacco smoke cost the U.S. economy nearly $10 billion a year, ranging from medical bills to lost hours on the job, according to a study commissioned by insurance actuaries.
While the study, to be released today, probably won't affect current litigation against tobacco companies, it could encourage insurers to consider separate pricing for nonsmokers exposed to tobacco smoke, attorneys say.
A smaller proportion of nonsmokers have been exposed to secondhand smoke in recent years, but the study concludes that direct medical costs total about $5 billion annually, while indirect costs, including lost wages and costs related to disabilities, total about $4.7 billion. Members of the Society of Actuaries and a researcher at Georgia State University business school arrived at these figures after reviewing more than 200 studies published since 1964.
Among the medical conditions more common among those exposed to secondhand smoke, the researchers concluded, are sudden infant death syndrome and chronic pulmonary disease, as well as asthma and spontaneous abortion.
"If you look at any one individual, the probabilities are pretty low, but if you happen to be the one who gets lung cancer, it's significant to you," said Donald F. Behan, the study's lead author and a senior research associate with Georgia State University's J. Mack Robinson College of Business. "There seems to be a relatively greater impact on children than adults."
The study eventually could lead life and health insurers to charge more to insure people exposed to what the industry calls environmental tobacco smoke, according to Tim Harris, a member of the actuarial society's board of governors and a principal in St. Louis with actuarial firm Milliman Inc.
For now, tests to gauge exposure to tobacco smoke are costly and imprecise, Mr. Harris added, but some insurers could decide to ask applicants about exposure at home or work.
Edward L. Sweda, senior attorney with the Tobacco Products Liability Project at Northeastern University School of Law in Boston, said a study pinning down the costs of secondhand smoke is likely to be more helpful in the public-policy debate over smoking bans than in current litigation against tobacco companies.
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