Your sure right!
The Congressional Research Service, in the 1998 revision of their study found: Smokers cost the federal government $9 billion in medical care and $10 billion in lost contributions to social security, etc. But they also found they save $40 billion in retirement costs (mostly social security), about $8 billion in nursing home costs (mostly from Medicaid), and they collect $5.6 billion in cigarette taxes. When added up, smokers saved the federal government $34.6 billion dollars yearly.
State governments saved money too. After subtracting net medical costs of $1.5 billion and $1.8 billion from lost contributions from a savings of $4.8 billion in nursing home costs financed through Medicaid and $.6 billion in retirement savings, and $7.6 billion in cigarette taxes, smokers saved the states almost $9.7 billion.