Report: Examining the cost-effectiveness of a sugary drink excise tax in Minnesota

Young girl drinking a glass of waterThrough the CHOICES Learning Collaborative Partnership, partners at the Minnesota Department of Health worked with the CHOICES Project Team to model the potential implementation of a state excise tax on sugary drinks (at a tax rate of $0.02/ounce) in Minnesota. The tax is projected to be cost-saving and result in lower levels of sugary drink consumption, thousands of cases of obesity prevented, more than $160 million dollars in health care cost savings, and improved health equity. The tax is projected to save $45.60 in health care costs per dollar invested. These expected changes in consumption and health outcomes are projected to improve population health and reduce health disparities in Minnesota.

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