1、Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS Web97-1053 EUpdated April 30, 1998The Proposed Tobacco Settlement: Who Pays forthe Health Costs of Smoking?Jane G. GravelleSenior Specialist in Economic PolicyEconomics DivisionSummaryOne of the iss
2、ues raised in the consideration of the proposed tobacco settlement isthe compensation of various parties that might pursue lawsuits to recover the health costsof smoking. These parties include states, tentatively allocated $5 billion per year in theagreement reached in June 1997, and individuals. Po
3、pular estimates of the annualmedical costs of smoking range around $50 billion, with the states accounting for slightlyunder $4 billion, individuals about $10 billion and the remainder paid for by the federalgovernment and private entities. Some recent estimates have reported higher costs. Amore com
4、plete accounting of the health costs of smoking not only increases the size ofthe costs, but also reallocates costs and implies net financial benefits for some parties.Governments save on the costs of old-age medical care, social security, and nursinghome care due to the earlier death of smokers. (T
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