Markets, Insurance, And The Medical Costs Of Smokers

Abstract

Even though people may miss work because of illnesses or deaths that are attributed to smoking, the cost of any resulting lost production that results is borne by the smokers and not by the nonsmoking members of society. But can the same thing be said about the medical expenses that are associated with the treatment of illnesses some claim are smoking-related? Those expenses are also substantial; they were estimated in the report of the Office of Technology Assessment to be roughly half the size of the costs of lost production — ranging from $12 to $35 billion in 1985, and with a “best” estimate of $22 billion. This “best” estimate is about 70 cents per pack, which is about twice the present tax burden on cigarettes. The more recent study of Smoking and Health: A National Status Report by the U.S. Department of Health and Human Services estimated the health-care bill for smoking at $23.7 billion (in 1985 dollars) out of a grand total including lost production of $52.4 billion.