Any search on 'smoking healthcare costs' is going to get the usual over-exaggeration that include 'smoking related illness and death' where anyone who has ever smoked 100 cigarettes (say at 15 yrs old then quits) then dies at 92 from 'heart disease' is a smoking related death.
A few, imo, good (older) articles. First from 'our own' Brad Rodu:
Calculating the ‘Big Kill
http://object.cato.org/sites/cato.org/files/serials/files/regulation/2007/12/v30n4-2.pdf
And one from Regulation magazine (a Cato publication):
The New Cigarette Paternalism
http://object.cato.org/sites/cato.org/files/serials/files/regulation/2005/12/v25n4-13.pdf
"One of the many misconceptions about cigarettes is that smokers
cost society substantial amounts in terms of insurance costs.
Beginning with the debate over the Clinton administration’s
health insurance proposal in the early 1990s, there have been
repeated claims reported in the press that smokers cost us $1 to
$2 a pack*** in medical costs and other insurance expenses. The
Centers for Disease Control continue to report such estimates,
which are dutifully covered in the press.
The calculations fail, however, to take into account the net discounted lifetime costs
for medical care and also ignore the reduction in costs that occurs
because of smokers’ premature mortality. The consensus in the
economics literature is that at reasonable rates of discount, such
as a real discount rate of three percent, cigarette smokers more
than pay their own way excluding the influence of excise taxes."
*** That cost of $1-2 a pack was from Gruber and Koszegi, and that's Jonathan Gruber of the recent "We lied about Obamacare and fooled the stupid American public" fame. He earlier worked on "Hillarycare" in the 90's. And this estimate was part of the assessments made at that time.
The author, Viscusi:
My estimates of the national insurance costs associated
with smoking indicate that there is
a net cost savings of
32¢ a pack excluding the role of excise taxes.