Financials

The following applies to a typical Company who employs 1,000 people and 200 (20%) are smokers. The assumption is that all 200 "choose" to request and use AMS’ self­-help, failure-­free Smoking Control Training to restart the quitting process.

At 12 months there are 40 (20%*) fewer smokers. On the 13 th month, $40.00** is deducted from the income of the remaining 160 smokers. As these smokers earn former smoker status at 8%* per year, the monthly deduction is discontinued. As the smoker population is diminished the monthly (annual) revenue is reduced. The extra annual costs to employ a smoker amount to $4,256 *** per year. Savings both annual and cumulative reflect the elimination of these extra costs as smokers successfully end their habit/addiction.

A 2013 Conference Board report determined the extra annual cost to employ a smoker to be $4256.00; accordingly, a “typical” company’s extra costs to employ 200 smokers exceeds $850,000 EVERY year. Savings both annual and cumulative reflect the reduction of these extra costs as smokers successfully end their habit/addiction.

Year Total # Smokers Additional Savings Savings per Year Investment HCE Revenue** Cumulative Savings & Revenue
$295.00 x 200     $59,000 Premium  
Year 1 160 $172,000 Year 1 $172,000 Year 1   $172,000
Year 2 147 $55,900 Year 2 $227,900 Year 2 $76,800 $304,700
Year 3 135 $50,784 Year 3 $279,500 Year 3 $70,560 $350,060
Year 4 124 $46,552 Year 4 $326,800 Year 4 $64,800 $391,600
Year 5 114 $42,320 Year 5 $363,952 Year 5 $59,520 $429,320
               
      $1,376,000 Total $271,680 $1,647,680
Company Name # of employees % of smokers Cumulative Savings HCE Premium $40.00** (arbitrary premium) Cumulative Savings and Revenue
Typical Company 1,000 20% $1,376,000 $271,680 $1,647.680

Quit Rate, Savings & Revenue Projections for ABC Company
‚Äč *Fiore et al - "Methods to Quit Smoking" - JAMA

Smokers Quit RateAnnual SavingsHealth Cost Equalization RevenueInvestment, Revenue, Annual & Cumulative Savings
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