A firestorm of controversy is erupting over an accounting report commissioned by Philip Morris suggesting premature deaths from smoking may be a "positive" thing, because — at least in the Czech Republic — they keep government health care, pension, and other costs down.

"Our principal finding is that the negative financial effects of smoking (such as increased health care costs) are more than offset by positive effects," says the Philip Morris report of the report.

"Public finance saved between [943 million and 1.19 billion in Czech dollars] from reduced health care costs, savings on pensions, and housing costs for the elderly — all related to the early mortality of smokers," the report continues.

The report was commissioned by Philip Morris after questions were raised in the Czech Republic about the high costs of paying for health care for Czechs suffering from smoking-related diseases.

The American Cancer Society (ACS) was quick to condemn the money-above-all-else attitude shown by the tobacco company, supporting the publication in major newspapers nationwide of an ad showing a faceless body in a morgue with a toe tag attached. The toe tag reads: "$1,227. That’s how much a study sponsored by Philip Morris said the Czech Republic saves on health care, pensions, and housing every time a smoker dies."

"Philip Morris’ motto these days is ‘working to make a difference’ in people’s lives, but this ad sets the record straight," says John R. Seffrin, PhD, chief executive officer of the ACS. "It informs people that Philip Morris continues to manipulate public perception with little regard to human life."

The ACS was joined in its condemnation of the tobacco company report — and the cynicism shown in its commissioning — by the American Legacy Foundation, a public health foundation created by the 1998 tobacco suit settlement, and by The Campaign for Tobacco-Free Kids, which focuses on reducing death and disease impact of tobacco on children.

The tobacco giant has not said whether it believes the savings touted in the report might be applied to Medicare and Medicaid in the US, or to government-funded health care in other countries. Under public pressure, the company has apologized for commissioning the report, and has canceled plans for similar studies in Poland, Slovakia, Hungary, and Slovenia.