Nothing increases health care costs like living longer. They then will need more knees and hips replaced, scans done, prescriptions filled, etc., etc., etc. I may be missing something, but I can't see how this could possibly reduce HC costs.
[link|http://healthlink.mcw.edu/article/1031002700.html|Healthlink]:
Other recent Dartmouth studies have shown that regions with the highest health care costs actually have lower-than-average outcomes and poorer quality of care in general. With about three-quarters of total US health care costs resulting from treating the chronically ill, some may argue that we needlessly sacrifice resources on end-of-life cases that could be applied to those with the chance of brighter outcomes.
Knee replacements, etc., are expensive, but they're usually one-time things. O2 for [link|http://www.nlm.nih.gov/medlineplus/emphysema.html|emphysema], etc., etc., and other chronic treatments apparently eat the bulk of the costs. Many of these illnesses and conditions are associated with smoking. Having healthier people means they have fewer chronic illnesses that need treatment, and (probably more importantly) means that they can contribute to the economy and society longer.
Cheers,
Scott.