The idea that they do is often used to justify higher taxes on tobacco. On balance, however, society makes a profit off of smokers:
The Centers for Disease Control and Prevention (CDC) [estimates] that smokers cost the country $96 billion a year in direct health care costs, and an additional $97 billion a year in lost productivity….. However, smokers die some 10 years earlier than nonsmokers, according to the CDC, and those premature deaths provide a savings to Medicare, Social Security, private pensions and other programs.
Vanderbilt University economist Kip Viscusi studied the net costs of smoking-related spending and savings and found that for every pack of cigarettes smoked, the country reaps a net cost savings of 32 cents.
A Dutch study published last year in the Public Library of Science Medicine journal said that health care costs for smokers were about $326,000 from age 20 on, compared to about $417,000 for thin and healthy people.