Wall Street Journal Examines Employers Offering Coverage for Smoking Cessation, Following Lead of Medicare

The Wall Street Journal on Tuesday examined how a recent decision by CMS to cover some smoking-cessation programs for Medicare beneficiaries -- combined with new evidence that such programs reduce health care costs -- is "putting pressure on some employers to re-examine" their decisions not to cover such treatments. According to the Journal, employers traditionally have not included smoking-cessation programs in their health plans because of a lack of evidence that the treatments provide a quick return on investment. A 2004 survey by the Society for Human Resource Management showed that less than one-third of employers offered comprehensive smoking-cessation programs (Furhmans, Wall Street Journal, 4/26). In March, CMS announced that Medicare will cover the cost of smoking-cessation counseling for beneficiaries with diseases caused or complicated by tobacco use, such as cardiovascular disease, lung disease, weak bones, blood clots and cataracts (Kaiser Daily Health Policy Report, 3/23). In addition, a new study by researchers from Kaiser Permanente's Center for Health Research and America's Health Insurance Plans shows that monthly investments of 18 cents to 79 cents per health plan member on smoking-cessation offerings can result in cost savings after two years. After five years, the researchers found that the net monthly return was between $1.70 and $2.20 per member. To build support for smoking-cessation programs, the two groups now are making available online a new modeling tool to help health plans determine how quickly the programs can provide a financial return.

Growing Support
"The direction is definitely toward more coverage, and it's following the evidence that it works," Michael Fiore, director of the Center for Tobacco Research and Intervention at the University of Wisconsin Medical School, said. Gregg Lehman, CEO of disease-management company Gordian Health Solutions, said, "Smoking cessation is the hottest program for us right now. It's the first thing employers are asking us about." Several companies already have launched smoking treatment health plan options. For example, Pennsylvania-based AmeriGas Propane waives copayments for prescription anti-smoking treatments and provides smokers with other incentives to quit. Washington state-based Destination Harley Davidson, which in 2001 began offering access to smoking-cessation programs at no cost, has found that employees who stop smoking have improved productivity and take fewer sick days (Wall Street Journal, 4/26).