Also, I think if we do have a system that's entirely based on need, then people who engage in risky behaviors like smoking or skydiving should have to pay more. But that's a tangent.
Cigarettes are 16.00 a packet here, for the cheap ones. That's mostly thanks to taxes. So govco sucks back some of the cost of paying for people's emphysema/cancer care by charging those that brought it on themselves.