Health Cost After Quitting: Examining Health Expenditure’s Pattern and Smoking Cessation in Indonesia

Deskripsi

Smoking substantially adds to chronic illnesses and healthcare expenditures. Current smokers typically incur substantial annual costs, whereas former smokers have distinct health hazards associated with their previous tobacco consumption. This study utilizes IFLS data (2007–2014) to examine healthcare expenditures between current and former smokers in Indonesia. This study used propensity score matching (PSM) to mitigate sample selection bias in smoking cessation. By accounting for health status and other covariates commonly associated with smoking behaviour, the analysis offers indicative evidence that smoking status may influence healthcare costs. The results suggest that individuals who have quit smoking tend to incur higher medical expenses, a pattern that appears consistent across different matching methods. One potential explanation for the elevated costs among former smokers is the occurrence of health shocks that may have triggered smoking cessation, resulting in increased medical needs at the time of quitting. These findings highlight the importance of implementing early health screening initiatives, particularly for individuals with a history of smoking.