Maryland Lawmakers Propose Cigarette Tax Increase To Fund Health Care Programs
02/14/07
Maryland House leaders on Wednesday proposed a 1 dollar-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 doll
Maryland House leaders on Wednesday proposed a 1 dollar-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 dollars 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).
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