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The Costs of Smoking Direct Costs In 1993, the direct health care costs associated with smoking totaled $50 billion, according to the Centers for Disease Control and Prevention. The government paid 43% of these costs through programs like Medicaid and Medicare. The Office of Technology Assessment estimates that the costs of tobacco in lost productivity for the U.S. economy were $47.2 billion in 1990. Even though the life expectancy of smokers if much lower than that of non smokers, over their lifetime, smokers and former smokers cost an estimated $501 billion in additional health care costs. According to the American Cancer Society, each pack of cigarettes sold is costing Americans more than $3.90 in smoking-related expenses. Costs of Secondhand Smoke Since 1993, secondhand smoke (breathing the smoke of others' cigarettes) has been listed as a human carcinogen by the U.S. Environmental Protection Agency. Secondhand smoke is responsible for:
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