RESULTS: The average incremental cost per life-year gained of funding smoking cessation pharmacotherapy compared to no funding was $1210/life-year gained. The incremental cost per life-year gained for the subgroups of patients aged 30, 40, 50, 60 years old were $970, $930, $1200, and $2060 per life-year gained, respectively. Our results were robust to plausible variation in relative risk (RR) of six months of continuous abstinence, RR of using nicotine replacement therapy, RR of using bupropion/varenicline, discounted life-years gained, relapse rate, and average cost. Our model is also robust with respect to scenarios in which there is exclusive varenicline use, smoking cessation pharmacotherapy use without physician prescription, and no survival benefit for those quitting smoking at ages greater than 65. Funding smoking cessation therapy appears cost saving when smoking-related morbidity is incorporated.