November 18, 2010 - According to a recent analysis by Bloomberg Government, insurers who pay for tobacco cessation treatments will save money after three years. The Department of Health and Human Services announced in July the cessation treatment insurance requirements that were outlined in the Affordable Care Act. The rule, which included many requirements, took effect in September 2010.  Among its many requirements the law prohibits cost-sharing, such as co-payments or deductibles, for stop-smoking benefits.

The analysis explains that in the first three years tobacco cessation benefit costs will surpass cost savings but, by the fourth and fifth year, smoking-related illness costs will begin to decrease as net savings increase.  Currently, smokers incur an average of $16,000 to $17,000 more in lifetime medical expenses, according to the Centers for Disease Control and Prevention.

The savings are due to the projected reductions in smoking-related illnesses, such as a lower risk for stroke, and the frequency and severity of such conditions. Americas Health Insurance Plans supports the requirements in the healthcare overhaul law due to the monumental cost savings. The findings in the analysis negate any previous reasons insurance companies did not cover comprehensive cessation treatments. In light of these findings, insurance companies now have a financial interest to encourage smokers to use stop-smoking treatments.

Click here to read the Bloomberg article

Click here to read the Boomberg analysis