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LOST PRODUCTIVITY HOW SMOKING COSTS BUSINESSES $3.19 billion in smoking-related health care expenditures is a staggering figure on its own. Yet it’s only part of the story. The 2017 Health Care Costs and Smoking in Minnesota report also reveals significant costs related to lost productivity. Each year, smoking costs Minnesota $4.3 billion in lost productivity. Lost productivity costs include the loss of regular earnings and the “replacement value” for unpaid work typically performed within the home. This figure factors in the years of life lost due to premature death, and is based on the 6,306 smoking-attributable adult deaths recorded in 2014. These 6,306 deaths represent people who are no longer able to work, earn money for their families, or contribute to their communities because of cigarette smoking. Tying a cost to these deaths shows the tangible economic impact of smoking in Minnesota. THE FINANCIAL IMPACT ON EMPLOYERS While premature deaths place an enormous burden on families and society, a 2012 study (not commissioned by Blue Cross) also demonstrated a significant financial impact on employers. The study estimated that on average, businesses spend an additional $5,816 annually per employee who smokes. These costs included excess absenteeism, lower productivity related to nicotine addiction, excess health care costs and lost productivity due to smoking breaks.1 $4.3 billion COULD ALSO PAY FOR: The ANNUAL UTILITY BILL for 282,152 MEDIUM BUSINESSES ($1,270/MONTH OR $15,240/YEAR FOR A MEDIUM-SIZED BUSINESS) OFFICE SUPPLIES for 4.3 MILLION SMALL BUSINESSES with five employees ($200 PER EMPLOYEE PER YEAR)3 PROFESSIONAL DEVELOPMENT for 5.28 MILLION EMPLOYEES ($814 PER EMPLOYEE PER YEAR)5 IT SPENDING for 434,343 EMPLOYEES ($9,900 AVERAGE IT SPENDING PER EMPLOYEE PER YEAR)4 2