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Colorado Health Insurance Insider

No-cost broker assistance. Cutting edge health insurance analysis.

Funding Health Care with Tobacco Tax

October 11, 2006 By Louise Norris

The governor of Oregon has proposed an $0.85/pack tax increase on cigarettes with the expected $150 to $170 million in revenue being used to subsidize health care for children in Oregon.  I think this is a great idea, and one that could be implemented in every state to help with the health care crisis in the US.  Tobacco has no redeeming qualities as far as health care is concerned.  It causes or exacerbates a number of health problems in both smokers and people exposed to second-hand smoke.  An $0.85/pack price increase could be the extra incentive that some smokers need to ditch the habit – thereby reducing their own health care costs considerably in the short-term, and probably extending their lifespan in the long run (this in turn could lead to higher health care costs associated with living longer – but most of us would take the extra years added to our lives, even if they come with some health complications in later years). 

Any program that improves America’s access to health care – especially for children – without cutting funding for other social programs, is a step in the right direction.  And one that taxes a health-destroying habit in the process is even better. 

Related posts:

  1. Tobacco Cessation And Health Insurance
  2. Funding Health Care Reform
  3. Taxing Our Vices
  4. McCain Health Care And Individual Health Insurance

Filed Under: Insurance Companies, Providers

About Louise Norris

Louise Norris has been writing about health insurance and healthcare reform since 2006. In addition to the Colorado Health Insurance Insider, she also writes for healthinsurance.org, medicareresources.org, Verywell, Spark by ADP, and Boost by ADP, and Gusto. Follow on twitter and facebook.

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