There are numerous costs to society attributable to the poisonous effects from tobacco use and smoking. Yet, it is difficult to calculate the dollar amount for the human costs of tobacco-related illnesses and disease. The suffering of patients and families resulting from tobacco-related morbidity and mortality is unquantifiable. Economists can estimate lost productivity and health care expenditures, but this is only part of the picture.

Regardless of the complexities of complete economic analysis, expected lifetime medical expenditures of the average smoker exceeds those of the average smoker by 28% for men and 21% for women [1]. In addition, each year more than a million young people become regular smokers. These decisions commit the health care system to $8.2 billion in extra medical expenditures over their lifetimes [2].

We estimate that 1998 costs to the State of New Mexico for Medicaid support payments approximates $75 million. We note that the federal government picks up slightly over half these costs. Yet, New Mexico citizens subsidize these costs either through their state or federal taxes.

Based on this 1998 figure, we graphically illustrate the support New Mexicans have provided Medicaid since 1964. We use 1964 as our baseline year as it is the point the federal government officially recognized the health affects attributable to smoking. The estimates assume a 5% annual cost of living increase. We recognize health cost have increased more rapidly than other costs. Therefore, we conclude these estimates are conservative.