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Costs of Employee Tobacco Use

Indiana employers are heavily burdened by tobacco use in Indiana.  Average annual healthcare costs due to tobacco use total an estimated $2.9 billion, and tobacco use costs Hoosiers an additional $3.2 billion in lost productivity.

How much does smoking cost employers?

Employees who smoke cost employers approximately $5,800 per smoker per year, according to a 2013 research study by the Ohio State University.  These costs include:

  • Over $2,000 per smoker in excess medical expenditures
  • Over $3,500 per smoker in lost productivity

Employees that smoke contribute to:

  • Higher life insurance premiums
  • Increased absenteeism
  • More time spent on smoking breaks
  • Greater risk of occupational injuries
  • More disability claims
  • Increased cleaning and maintenance
  • More disciplinary actions

Making the business case for smoking cessation

Providing assistance for employees to quit smoking can reduce excess smoking-related costs to employers.  This Return on Investment Cost Savings Calculator can help you estimate how much your business could save by providing coverage, promotion, and encouragement of smoking cessation among employees.

Learn more

Become a Quit Now Preferred Employer to learn more about how you can potentially lower your business costs by reducing employee tobacco use.