Friday, February 09, 2007 State
Watch
Maryland Lawmakers Propose Cigarette Tax Increase
To Fund Health Care Programs
Maryland House leaders on Wednesday
proposed a $1-per-pack cigarette tax increase to extend health insurance
coverage to at least 250,000 uninsured state residents, the Washington Post reports. The proposal would
use an estimated $212 million annually from the cigarette tax increase to
expand Medicaid eligibility (Rein, Washington Post, 2/8).
Under the proposal, income limits for adults would increase from 40% of
the federal poverty level to 116% of the poverty level. Medicaid
eligibility for children would be expanded to those in families with
incomes of up to 400% of the poverty level, and families with incomes
greater than 200% of the poverty level would pay for Medicaid coverage
based on a sliding scale. The proposal would require state residents whose
incomes are greater than 400% of the poverty level to purchase insurance
or pay state penalties of up to $2,000 (Smitherman, Baltimore Sun, 2/8). The plan also would
provide $140 million in subsidies for health benefits to employers with
fewer than 50 workers (Wyatt, AP/Washington Times, 2/8). In addition,
private insurers would be required to allow adults up to age 25 to remain
covered by their parents' plan. The proposal also would provide $40
million for substance abuse treatment and smoking cessation programs
(Baltimore Sun, 2/8). The plan would cost an estimated $603
million and would be funded by the cigarette tax increase, federal
matching funds and savings from other programs (Washington
Post, 2/8). Rick Abbruzzese, a spokesperson for Maryland Gov.
Martin O'Malley (D), said the governor was "not inclined" to support the
tax increase (AP/Washington Times, 2/8). State Senate leaders also
oppose increasing the cigarette tax to fund health programs
(Washington Post, 2/8).