Walmart to end cigarette sales in some stores
Steven Senne
FILE - In this Sept. 3, 2019, file photo, a Walmart logo forms part of a sign outside a Walmart store, in Walpole, Mass. Walmart Inc. will no longer be selling cigarettes in some U.S. stores, a complicated move since tobacco is a money driver for many retailers. The nation's largest retailer, based in Bentonville, Arkansas, said the removal is on a store-by-store decision based on the business and particular market. (AP Photo/Steven Senne, File)
NEW YORK (AP) — Walmart will no longer sell cigarettes in some of its stores though tobacco sales can be a significant revenue generator.
Wall Street Journal was the first to report the development Monday. It noted some stores in California, Florida, Arkansas and New Mexico were on the list, citing anonymous sources and store visits.
Walmart is not the first national retail chain to cut off cigarette sales even on a trial basis, but it is the largest.
Target ended cigarette sales in 1996 and the drugstore chain CVS Health did the same in 2014.
CVS Health sales in areas outside the pharmacy fell for a few quarters after it pulled tobacco products, and the company had predicted that missing tobacco products would hurt annual earnings by 7 to 8 cents per share.
Overall revenue has grown every year at CVS, however, after a number of acquisitions and changes to its stores bolstered the company’s health care offerings. CVS Health bought the health insurer Aetna in 2017.
Decisions about removing cigarettes at Walmart will be made on a store-by-store basis according to the business and particular market, the company said Monday.
“We are always looking at ways to meet our customers’ needs while still operating an efficient business,” Walmart said in a prepared statement.
Health officials say that cigarette smoking causes about one of every five deaths in the U.S. each year.
Walmart Inc., based in Bentonville, Arkansas, announced in 2019 that it was getting out of the vaping business and would stop selling electronic cigarettes at its stores and also at Sam’s Clubs. It said at the time the decision was based on “growing federal, state and local regulatory complexity.”
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The COVID-19 pandemic has put unprecedented strain on the U.S. health system over the last two years. With hospitals and providers facing heavy workloads, a fractured supply chain, and labor shortages, the system is continuing to struggle as the Omicron variant brings the newest, largest wave of COVID cases yet.
These challenges are pushing U.S. health spending to new heights. A recent study from Health Affairs reported that total health spending in the U.S. increased by 9.7% in 2020 to $4.1 trillion, even as GDP declined by 2.2%. One of the biggest factors in that increase was a significant infusion of federal funding for health through COVID-19 relief legislation like the $2.2 trillion CARES Act and the $900 billion Coronavirus Response and Relief Supplemental Appropriations Act. These federal dollars provided support to health providers, helped strengthen public health infrastructure to manage the spread of the coronavirus, and sped the development and distribution of vaccines.
But while the federal government has spent heavily to navigate the current crisis, it is less clear how COVID-19 might affect overall health spending in the long term. Even before COVID-19, state and local governments have been spending an increasingly large share of their budgets on health. Ongoing challenges from the pandemic and efforts to strengthen the health system in the future could further accelerate that growth.
ShutterstockPhoto Credit: Cryptographer / Shutterstock
The COVID-19 pandemic has put unprecedented strain on the U.S. health system over the last two years. With hospitals and providers facing heavy workloads, a fractured supply chain, and labor shortages, the system is continuing to struggle as the Omicron variant brings the newest, largest wave of COVID cases yet.
These challenges are pushing U.S. health spending to new heights. A recent study from Health Affairs reported that total health spending in the U.S. increased by 9.7% in 2020 to $4.1 trillion, even as GDP declined by 2.2%. One of the biggest factors in that increase was a significant infusion of federal funding for health through COVID-19 relief legislation like the $2.2 trillion CARES Act and the $900 billion Coronavirus Response and Relief Supplemental Appropriations Act. These federal dollars provided support to health providers, helped strengthen public health infrastructure to manage the spread of the coronavirus, and sped the development and distribution of vaccines.
But while the federal government has spent heavily to navigate the current crisis, it is less clear how COVID-19 might affect overall health spending in the long term. Even before COVID-19, state and local governments have been spending an increasingly large share of their budgets on health. Ongoing challenges from the pandemic and efforts to strengthen the health system in the future could further accelerate that growth.
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Walmart to end cigarette sales in some stores
At the state and local level, total spending on health care has more than doubled over the last two decades, from $127.3 billion in 2000 to $321.7 billion in 2019 (a 70% increase after adjusting for inflation). While state and local spending has increased overall, health also represents an increasing share of the total: in 2000, health care was 8.5% of total spending, while in 2019, that figure rose to 9.6%.
A number of factors are contributing to this increased total. Some experts cite a reliance on expensive new innovations and technologies in care and administrative complexity of insurers and hospitals as a major contributor to overall costs. The aging of the Baby Boomer generation, which totals more than 70 million Americans, brings greater health needs and increases costs as well. Amid these other factors, the expansion of Medicaid under the Affordable Care Act has also increased what states must spend on their portion of the program. Although, it’s important to note that most of Medicaid spending is categorized as public welfare spending.
At the state and local level, total spending on health care has more than doubled over the last two decades, from $127.3 billion in 2000 to $321.7 billion in 2019 (a 70% increase after adjusting for inflation). While state and local spending has increased overall, health also represents an increasing share of the total: in 2000, health care was 8.5% of total spending, while in 2019, that figure rose to 9.6%.
A number of factors are contributing to this increased total. Some experts cite a reliance on expensive new innovations and technologies in care and administrative complexity of insurers and hospitals as a major contributor to overall costs. The aging of the Baby Boomer generation, which totals more than 70 million Americans, brings greater health needs and increases costs as well. Amid these other factors, the expansion of Medicaid under the Affordable Care Act has also increased what states must spend on their portion of the program. Although, it’s important to note that most of Medicaid spending is categorized as public welfare spending.
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Walmart to end cigarette sales in some stores
Regardless of the reason, health care is one of the primary spending categories in state and local budgets. At 9.6% of spending, health is the third-largest state and local government category behind public welfare, which includes means-tested supports like the Temporary Assistance for Needy Families (TANF) program and represents around 22.3% of state and local spending, and K-12 education, which makes up 21.5% of state and local budgets.
Regardless of the reason, health care is one of the primary spending categories in state and local budgets. At 9.6% of spending, health is the third-largest state and local government category behind public welfare, which includes means-tested supports like the Temporary Assistance for Needy Families (TANF) program and represents around 22.3% of state and local spending, and K-12 education, which makes up 21.5% of state and local budgets.
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Walmart to end cigarette sales in some stores
But some states spend more on health care than others. In total spending, high-population states like California, Texas, New York, and Florida lead the nation. While California ($1,533) is also among the top spending states on a per capita basis, many of the other leaders are smaller states like Wyoming ($2,978), South Carolina ($1,730), and Kansas ($1,558).
The data used in this analysis is from the U.S. Census Bureau’s Annual Survey of State and Local Government Finances. To determine the states spending the most on health care, researchers Self Financial calculated total state and local health care spending per person using the most recent data available.
Here are the states spending most on health care.
But some states spend more on health care than others. In total spending, high-population states like California, Texas, New York, and Florida lead the nation. While California ($1,533) is also among the top spending states on a per capita basis, many of the other leaders are smaller states like Wyoming ($2,978), South Carolina ($1,730), and Kansas ($1,558).
The data used in this analysis is from the U.S. Census Bureau’s Annual Survey of State and Local Government Finances. To determine the states spending the most on health care, researchers Self Financial calculated total state and local health care spending per person using the most recent data available.
Here are the states spending most on health care.
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $988
- State & local health care spending share of total: 10.5%
- Total state & local health care spending: $8,429,368,000
- Population: 8,535,519
ShutterstockPhoto Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $988
- State & local health care spending share of total: 10.5%
- Total state & local health care spending: $8,429,368,000
- Population: 8,535,519
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Photosbykaity / Shutterstock
- State & local health care spending per capita: $1,013
- State & local health care spending share of total: 10.8%
- Total state & local health care spending: $10,119,784,000
- Population: 9,986,857
ShutterstockPhoto Credit: Photosbykaity / Shutterstock
- State & local health care spending per capita: $1,013
- State & local health care spending share of total: 10.8%
- Total state & local health care spending: $10,119,784,000
- Population: 9,986,857
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: photo.ua / Shutterstock
- State & local health care spending per capita: $1,123
- State & local health care spending share of total: 12.0%
- Total state & local health care spending: $3,600,612,000
- Population: 3,205,958
ShutterstockPhoto Credit: photo.ua / Shutterstock
- State & local health care spending per capita: $1,123
- State & local health care spending share of total: 12.0%
- Total state & local health care spending: $3,600,612,000
- Population: 3,205,958
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Bob Pool / Shutterstock
- State & local health care spending per capita: $1,142
- State & local health care spending share of total: 9.5%
- Total state & local health care spending: $4,815,765,000
- Population: 4,217,737
ShutterstockPhoto Credit: Bob Pool / Shutterstock
- State & local health care spending per capita: $1,142
- State & local health care spending share of total: 9.5%
- Total state & local health care spending: $4,815,765,000
- Population: 4,217,737
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,163
- State & local health care spending share of total: 14.2%
- Total state & local health care spending: $7,137,657,000
- Population: 6,137,428
ShutterstockPhoto Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,163
- State & local health care spending share of total: 14.2%
- Total state & local health care spending: $7,137,657,000
- Population: 6,137,428
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Wirestock Creators / Shutterstock
- State & local health care spending per capita: $1,315
- State & local health care spending share of total: 8.4%
- Total state & local health care spending: $25,588,914,000
- Population: 19,453,561
ShutterstockPhoto Credit: Wirestock Creators / Shutterstock
- State & local health care spending per capita: $1,315
- State & local health care spending share of total: 8.4%
- Total state & local health care spending: $25,588,914,000
- Population: 19,453,561
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,474
- State & local health care spending share of total: 16.8%
- Total state & local health care spending: $7,228,538,000
- Population: 4,903,185
ShutterstockPhoto Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,474
- State & local health care spending share of total: 16.8%
- Total state & local health care spending: $7,228,538,000
- Population: 4,903,185
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: f11photo / Shutterstock
- State & local health care spending per capita: $1,499
- State & local health care spending share of total: 14.3%
- Total state & local health care spending: $4,729,036,000
- Population: 3,155,070
ShutterstockPhoto Credit: f11photo / Shutterstock
- State & local health care spending per capita: $1,499
- State & local health care spending share of total: 14.3%
- Total state & local health care spending: $4,729,036,000
- Population: 3,155,070
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: f11photo / Shutterstock
- State & local health care spending per capita: $1,512
- State & local health care spending share of total: 14.0%
- Total state & local health care spending: $11,513,156,000
- Population: 7,614,893
ShutterstockPhoto Credit: f11photo / Shutterstock
- State & local health care spending per capita: $1,512
- State & local health care spending share of total: 14.0%
- Total state & local health care spending: $11,513,156,000
- Population: 7,614,893
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Chones / Shutterstock
- State & local health care spending per capita: $1,533
- State & local health care spending share of total: 11.7%
- Total state & local health care spending: $60,569,031,000
- Population: 39,512,223
ShutterstockPhoto Credit: Chones / Shutterstock
- State & local health care spending per capita: $1,533
- State & local health care spending share of total: 11.7%
- Total state & local health care spending: $60,569,031,000
- Population: 39,512,223
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: digidreamgrafix / Shutterstock
- State & local health care spending per capita: $1,536
- State & local health care spending share of total: 17.9%
- Total state & local health care spending: $16,105,067,000
- Population: 10,488,084
ShutterstockPhoto Credit: digidreamgrafix / Shutterstock
- State & local health care spending per capita: $1,536
- State & local health care spending share of total: 17.9%
- Total state & local health care spending: $16,105,067,000
- Population: 10,488,084
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,547
- State & local health care spending share of total: 17.3%
- Total state & local health care spending: $4,605,287,000
- Population: 2,976,149
ShutterstockPhoto Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,547
- State & local health care spending share of total: 17.3%
- Total state & local health care spending: $4,605,287,000
- Population: 2,976,149
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,558
- State & local health care spending share of total: 16.1%
- Total state & local health care spending: $4,538,829,000
- Population: 2,913,314
ShutterstockPhoto Credit: Sean Pavone / Shutterstock
- State & local health care spending per capita: $1,558
- State & local health care spending share of total: 16.1%
- Total state & local health care spending: $4,538,829,000
- Population: 2,913,314
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: f11photo / Shutterstock
- State & local health care spending per capita: $1,730
- State & local health care spending share of total: 19.3%
- Total state & local health care spending: $8,905,798,000
- Population: 5,148,714
ShutterstockPhoto Credit: f11photo / Shutterstock
- State & local health care spending per capita: $1,730
- State & local health care spending share of total: 19.3%
- Total state & local health care spending: $8,905,798,000
- Population: 5,148,714
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Walmart to end cigarette sales in some storesShutterstock
Photo Credit: Real Window Creative / Shutterstock
- State & local health care spending per capita: $2,978
- State & local health care spending share of total: 19.7%
- Total state & local health care spending: $1,723,417,000
- Population: 578,759
ShutterstockPhoto Credit: Real Window Creative / Shutterstock
- State & local health care spending per capita: $2,978
- State & local health care spending share of total: 19.7%
- Total state & local health care spending: $1,723,417,000
- Population: 578,759
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