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Armour BS et al. - An estimated 443,000 Americans die prematurely each year as a result of smoking or exposure to secondhand smoke. Medicaid recipients are disproportionately affected by tobacco-related disease because their smoking prevalence is approximately 53% greater than that of the overall US adult population. In addition to the individual health toll, the disproportionately higher smoking prevalence among Medicaid recipients imposes substantial costs on society. The authors estimate that smoking accounts for approximately 11% of Medicaid program expenditures. To improve the health of Medicaid recipients and potentially reduce the growth rate of expenditures, Medicaid programs in all 50 states and the District of Columbia are encouraged to follow the 2000 PHS guidelines and cover all recommended tobacco-dependence treatments and approved medications. The cost-effectiveness of these programs, combined with the high cost of smoking, suggests that such coverage may provide cost savings to the financially strapped Medicaid programs.

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