AUGUSTA – House Speaker Michael Saxl unveiled a plan Thursday to hike cigarette taxes by 50 cents a pack and use the new revenue to expand access to health care for uninsured children and adults, as well as the elderly and people with disabilities.
Saxl said more than 40,000 uninsured people – about one-quarter of Maine residents who have no health care coverage – could benefit from the package.
“There’s no doubt that Maine is in the midst of a health care crisis,” Saxl said.
He called his bill “a first step.”
Raising the cigarette tax itself, said Saxl, D-Portland, could help lower smoking levels.
Joining Saxl in touting the package at a State House news conference was Democratic Sen. John Martin of Eagle Lake, who said expanded access to health care was especially important in rural Maine.
“Rural Maine has fewer access points, fewer providers and fewer people with insurance coverage,” Martin said in prepared remarks. “At the same time, we travel greater distances, are at higher risk for heart and lung disease and have statistically older populations.”
Also expressing support was a spokesman for the Maine Medical Association.
“This proposal is unique in that a proven means of reducing the smoking rate, increasing the cost of cigarettes, also will generate sufficient revenue to provide additional Maine citizens with health insurance coverage,” said Dr. Jacob Gerritsen, a Camden internist. “It is truly a win-win proposal.”
As outlined by the advocates, the proposal would increase eligibility for Medicaid for parents of children who have Medicaid coverage from 150 percent to 200 percent of the federal poverty level.
It would also make eligible for Medicaid coverage uninsured adults with income up to 200 percent of the federal poverty line.
Income eligibility standards for children would also increase.
Additionally, advocates said the proposal would allow self-employed individuals and sole proprietors to buy Medicaid-like coverage, and make it easier for people with disabilities to work without imperiling their access to health care.
Advocates peg uncompensated care costs in Maine at $163 million.
Lorri Mealey, a restaurant owner from Farmington, said the proposal could benefit workers in small businesses that are unable to afford the costs of employee health insurance.
“The prices are so high, it’s just out of the question,” she said.
With employees eligible for health care coverage on their own, Mealey said her business would be able to “keep more qualified workers with us longer.”
The American Cancer Society says 39 percent of Maine high school students smoke and that 13 percent of high school males use smokeless tobacco.
The cancer society estimated the state’s adult smoking rate at 23 percent.
“Increasing the cost of tobacco will have a profound effect on tobacco use,” said Gerritsen, the chairman of the state medical association’s public health committee. “The evidence is overwhelming that demand and consumption of tobacco decrease as price increases.”
The 50 cents per pack sought by Saxl would not be in addition to the 26-cents-per-pack increase proposed by Gov. Angus King as part of his health agenda.
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