Thursday, February 15, 2007
Governor Culver Pushes For $1 Tobacco Tax Increase
Revenue critical to close smoking-related medicaid gap; Save 20,000 lives
(Des Moines) Today, at Polk County’s Broadlawns Medical Center, Governor Chet Culver and Lt. Governor Patty Judge called on Iowans to contact their legislators and urge them to support a $1-per-pack increase in the tobacco tax.
Governor Culver directed those in attendance to a chart showing the dramatic $187 million Medicaid gap between what the current tobacco tax brings in and what is paid out for smoking-related illnesses. Today, Iowa has the 9th lowest tobacco tax in the nation and currently brings in $90.5 million per year in revenue. Meanwhile, the annual Medicaid expenses for smoking-related illnesses amounts to $277 million per year. This leaves a $187 million gap funded mostly by non-smoking Iowans.
“This is about fairness,” said Governor Culver. “Right now, non-smokers are footing the bill for Iowa’s smoking-related health costs to the tune of almost $200 million per year. This is not fair. Raising the tax by $1 per pack will help close this gap which will then allow us to use those additional state dollars to expand access to health insurance and eventually cover every child in Iowa.”
Mikki Stier, Senior Vice President of Broadlawns, explained that Broadlawns serves 33,000 people every year and, of those individuals, 19,500 lack health insurance. Broadlawns strongly supports raising the tobacco tax $1-per-pack.
Governor Culver opened his remarks discussing the number one benefit of raising the tobacco tax by $1 – saving lives. According to a study by Tobacco-Free Partnership, a group of 50 organizations including the American Cancer Society, American Lung Association and Iowa Medical Society, raising the tax by this $1-per-pack will save close to 20,000 lives. [Source]
“This is a matter of life and death,” said Governor Culver. “We can’t say that about every issue before the legislature, but we certainly can about this issue.”