Clear the Air

On Tuesday, an interim committee of the West Virginia Legislature will be considering legislation recommending an increase West Virginia’s tobacco excise tax on cigarettes from the current level of 55 cents per pack to the national average of $1.20 per pack.  This measure will likely be quite contentious as the legislative session proceeds with the tobacco industry lobbying hard, as they always do, to defeat any proposal which might dampen their ability to peddle a dangerous, toxic and addictive product.

Increasing West Virginia’s excise tax this year is vital to the health of our state and its citizens in two ways.

First,  raising the cost of tobacco products is a proven strategy to reduce the use in virtually every age group and demographic. Studies, and experience in state after state, show that higher cigarette taxes are one of the most effective ways to reduce smoking among both youth and adults. Every 10 percent increase in the price of cigarettes will reduce youth smoking by about seven percent and overall cigarette consumption by about four percent.

Secondly, increasing the excise tax on tobacco products will generate the increased revenues needed for West Virginia to provide health coverage to more of our people and move forward implementing a host of health reforms outlined in the Roadmap to Health Report. This report, which has been a year in the making and has involved hundreds of citizens and stakeholders throughout the state, says “West Virginia spends 13 percent more per person on health care than the national average. Moreover, the growth in spending is slightly higher in West Virginia compared to the national average. Over 14 percent — some 254,000 — West Virginians were uninsured during 2007.”

Only by making health care more available, affordable and geared towards preventing disease before it occurs can these statistics be changed. Many of the proposals which have been developed during through the Roadmap to Health Project are critical to addressing these problems but can not occur without a means of funding. An increase in the tobacco excise tax will provide those needed funds. Every state that has significantly increased its cigarette tax has enjoyed substantial increases in revenue, even while reducing smoking. These funds have helped other states fund essential services like health care and tobacco prevention programs. Contrary to tobacco industry arguments, cigarette tax increases are a reliable source of revenue for states.

West Virginia’s tax on cigarettes currently ranks 40th in the nation. No surprise we have the second highest death rate from tobacco related illnesses.

Now is the time for our citizens and our elected officials to stand up to the special interests of the tobacco industry. Now is the time to put the health of our people first. Now is the time to provide the access to care and preventive services West Virginia’s need to grow and prosper.

Now is the time for a tobacco tax increase in West Virginia.

Tags: health care, Roadmap to Health, tax, tobacco, West Virginia, West Virginia Legislature

The U.S. House of Representatives today passed, and President Obama has just signed,  important legislation to provide health insurance for children funded through a 61.66 cents per pack increase in the federal tobacco excise tax. The legislation will provide health care coverage for approximately 4 million more children in the country.

The SCHIP (State Children’s Health Insurance Program) legislation previously had passed both chambers of Congress only to be vetoed by then-President Geore W. Bush.

The tobacco tax increase will have a dramatic impact on public health. According to projections from the Campaign for Tobacco Free Kids the tax will result in:

- Increase in total number of kids alive today who will not become smokers:
1,992,000

- Number of current adult smokers in the US who will quit: 1,020,000

- Number of smoking-affected births avoided over next five years: 248,000

- Number of total smokers saved from future smoking-caused death: 905,000

- 5-year health care savings from fewer smoking-affected pregnancies & births:
$423.2 million

- 5-year health care savings from fewer smoking-caused heart attacks & strokes:
$493.3 million

- Long-term healthcare savings in the US from adult & youth smoking declines:
$44.5 billion

For West Virginia this will result in:

- Fewer kids becoming tobacco-addicted adults: 17,100

- Fewer current adult smokers: 10,600

- Future smoking deaths prevented: 8,200

- Future state health care savings: $400 million

- Medicaid share of future health savings: $96.7 million

These projections are based on research findings that a 10% cigarette price increase reduces youth smoking rates by 6.5%, adult rates by 2%, and total consumption by 4%. Kids stopped from becoming addicted adult smokers or from dying from smoking are from all kids alive today. Reduced adult deaths is from current adult smokers. Future healthcare savings accrue over the lifetimes of persons who stop smoking or never start because of the cigarette tax increase. Savings are in 2004 dollars. The Medicaid Share of Future Health Savings amounts for each state represent the future reductions to total healthcare expenditures by each state’s Medicaid program.

Tags: Federal Policy, health care, SCHIP, tobacco tax