Where will the tax money go?
The state will collect about $206 million a year by raising the cigarette tax by 44 cents -- to 99.5 cents a pack -- starting July 1.
33 cents -- $11 million to boost child immunization programs. The rest goes to provide health insurance for 132,000 working poor Hoosiers.
5 cents -- Other health care efforts, including a $1.2 million boost in smoking cessation programs. (The governor asked for $24 million.)
3 cents -- Tax credits of up to $2,500 ($50 per employee) for companies that create an employee health insurance plan and currently aren't offering insurance.
2 cents -- Reimbursement rates for doctors who serve patients covered by state-federal programs for the poor, the elderly and the disabled will be increased.
1 cent --Reimbursement for doctors who serve patients covered by state-federal programs for the poor.
WHO'S ELIGIBLE
Uninsured adults and pregnant women earning up to 200 percent of the federal poverty rate -- $19,600 for a single person, $40,000 for a family of four. Participants, who will be enrolled on a first-come, first-served basis, must pay in up to 5 percent of their income, based on sliding scale starting at 2 percent for individuals who earn $9,800 or less. Participants receive $500 in annual preventive care, a $1,100 health savings account and up to $300,000 in annual insurance coverage.
OTHER ASPECTS
-- Children can remain on a parent's insurance until age 24 -- currently 19, or 21 if the child is enrolled in college.
-- Income eligibility limits raised for state-federal health programs for children and pregnant women; changes expected to insure 56,000.
-- Businesses with up to 100 employees can receive a tax credit for starting an employee wellness program.
INDIANAPOLIS | Hobart Middle School students in town to tour the Capitol on Thursday witnessed Gov. Mitch Daniels take what he called the "longest single step" in the path toward a healthier Indiana.
The governor signed legislation that will leverage a 44-cent cigarette tax hike to provide health insurance for 132,000 working poor Hoosiers. Key legislative allies, including Rep. Charlie Brown, D-Gary, joined Daniels on stage at a Statehouse ceremony to christen what's being called the Indiana Check-Up Plan.
"The stars were aligned in order for us to do this," said Brown, a vocal tobacco critic who shepherded the Republican governor's health plan through the Democrat-controlled House. "It is indescribable what happened, that we were able to come together to pass this wonderful piece of legislation that is comprehensive in terms of covering mental illness, pregnant women, children, the works."
Uninsured adults and pregnant women earning less than double the federal poverty rate -- $19,600 for a single person -- can receive $500 in annual preventive care, including mammograms and prostate exams under the plan. Participants, who must pay in up to 5 percent of their income, also receive a $1,100 annual health savings account to cover doctor visits and other medical needs. Enrollees who exhaust those accounts can access up to $300,000 a year in insurance benefits.
Portions of the plan still need federal approval, and the state is in the process of recruiting insurance firms to administer coverage, which will be allocated on a first come, first serve basis.
Daniels said the cigarette tax hike alone, which takes effect in July, should do wonders for Hoosier health.
"All by itself, raising the price of tobacco products will lead people of this state to finally cross over and stop smoking as 70 percent of Hoosier smokers say they would like to do," the governor said. "And of even greater importance, it will deter thousands and thousands of young people from ever experimenting with tobacco."
The 44-cent increase will raise Indiana's cigarette tax to 99.5 cents, which is still about a nickel short of the national average, according to the Campaign for Tobacco-Free Kids. Illinois charges 98 cents, but city and Cook County taxes bring the total tax burden to $3.66 a pack for Chicago smokers.
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