2001
DOI: 10.1002/pam.1037
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The Economic impacts of the tobacco settlement

Abstract: Recent litigation against the major tobacco companies culminated in a master settlement agreement (MSA) under which the participating companies agreed to compensate most states for Medicaid expenses. Here the terms of the settlement are outlined and its economic implications analyzed using data from Massachusetts. The financial compensation to Massachusetts (and other states) under the MSA is substantial. However, this compensation is dwarfed by the value of the health impacts induced by the settlement. Specif… Show more

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Cited by 47 publications
(38 citation statements)
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“…22 We also evaluated a variety of other approaches to valuing informal caregiver time in a sensitivity analysis, including applying 1) age-and gender-specific median wages in 2006 (age categories: <24 years, 25-34 years, 35-44 years, 45-54 years, 55-64 years, and 65 years), 21 2) the median wage for a home health aid ($9.70 in 2006), 21 3) age-and educational attainment level-specific median wages in 2006, 21 and 4) a previously published value of 1 year of life based on a willingness-to-pay approach of $150,000 23 and converted to an hourly rate ($17.12). This value of a year of life is consistent with other approaches and has been used elsewhere to value patient time.…”
Section: Time Cost Estimates For Informal Caregiving In 2 Years Aftermentioning
confidence: 99%
“…22 We also evaluated a variety of other approaches to valuing informal caregiver time in a sensitivity analysis, including applying 1) age-and gender-specific median wages in 2006 (age categories: <24 years, 25-34 years, 35-44 years, 45-54 years, 55-64 years, and 65 years), 21 2) the median wage for a home health aid ($9.70 in 2006), 21 3) age-and educational attainment level-specific median wages in 2006, 21 and 4) a previously published value of 1 year of life based on a willingness-to-pay approach of $150,000 23 and converted to an hourly rate ($17.12). This value of a year of life is consistent with other approaches and has been used elsewhere to value patient time.…”
Section: Time Cost Estimates For Informal Caregiving In 2 Years Aftermentioning
confidence: 99%
“…2 smokers on average live 6.5 (males) to 5.7 (females) fewer years, relative to never smokers (Cutler et al, 1999). Thus, it is critical to understand the role that public policy can play in deterring youth smoking.…”
mentioning
confidence: 99%
“…See Cutler et al (2002) for a detailed analysis of the agreement. 7 The payments are also adjusted for inflation and loss of market share to non-participating manufacturers.…”
mentioning
confidence: 99%
“…A simple explanation for this surprisingly large price increase would be that wholesalers and retailers impose additional (percentage) markups. However, the existing literature on the price sensitivity to cigarette taxes concludes that wholesalers and retailers set markups at a fixed dollar amount above costs, rather than as a percentage (e.g., Sumner 1981;Cutler et al 2002). Another explanation is that the process of negotiating the MSA provided an opportunity for the cigarette firms to agree to collectively raise prices.…”
mentioning
confidence: 99%