We support raising the state tobacco tax by $1.00 per pack to reduce teen and adult smoking and to save the state billions in long term health care costs.

In addition to significantly reducing teen smoking, this increase would give about 62,000 uninsured Marylanders access to quality, affordable health care. According to the state's fiscal services department, the tax would raise $211 M the first year and conservatively, at least $170 M each subsequent year. Below is how this money should be spent:

$90 Million to help tens of thousands get the health care coverage they need. This amount would allow us to expand Medicaid eligibility to parents who earn below 100% of poverty (< $16,600 annually for a family of three). Medicaid currently covers only parents who earn up to 39% of poverty (< $6,474 annually for a family of three).  Experts estimate that the cost of the expansion would be ~$40 million in state dollars.  The remaining funds in this category would restore health care services for legal immigrant children and pregnant women, eliminate the chronic Medicaid budget deficit, and provide for a buffer to allow for future increases in Medicaid costs due to our planned expansion.

$14 Million to help fully fund the state's tobacco use prevention & cessation program. The Centers for Disease Control states that Maryland should spend at least $35 million per year on tobacco use prevention and cessation programs to be most effective. Current law requires the Governor to budget $21 million for tobacco use prevention and cessation programs. Our bill will require the Governor to budget $35 million for effective programs. We propose that Maryland meet this federal recommended minimum by spending $14 million from this tobacco tax increase to add to $21 million to be allocated from the tobacco settlement funds and other sources.

$30 Million for drug treatment on demand. Funding sound drug treatment practices and policies will save lives, reduce crime, rebuild families and communities, and use public funds wisely.

$10 Million for Community Health Center Specialist Care. This amount will allow community health centers to provide necessary specialist care for uninsured people who use their services. 

$15 Million for a pilot program to help small businesses with health insurance costs. This money would be used to fund matching tax credits for small businesses that enroll their employees in the Small Group Benefit Plan to see if this approach would effectively increase the number of small businesses offering insurance coverage to their employees.  Businesses would currently have to qualify for the "limited benefit plan" to be eligible for a subsidy. 

$10 Million for reducing health care disparities. This money will allow the Office on Minority Health and Health Disparities to develop and implement a plan to reduce health care disparities in Maryland, improving family health in all communities. 

Note:  We expect that the Comptroller will request additional monies to allow enforcement agents to have sufficient resources to continue its effective interdiction program to stop cigarette smuggling in Maryland. The national data shows smuggling is not a significant problem when tobacco taxes go up but we want to make sure the state has the resources it needs to control whatever smuggling does occur.

Each time a Marylander gets needed health care coverage, quits smoking, gets off drugs or receives preventive care, YOUR health care becomes more affordable.