Sebelius calls for 50-cent tax increase on cigarettes

Revenue would finance health coverage for uninsured Kansans

? The state’s cigarette tax would jump 50 cents a pack to finance health coverage for currently uninsured Kansans under initiatives Gov. Kathleen Sebelius announced Tuesday.

Sebelius and Insurance Commissioner Sandy Praeger outlined a $50 million package calling for the state to cover medical services for an additional 70,000 Kansans and to subsidize private health insurance plans for small businesses.

They also outlined plans for reorganizing state health care programs, forming a commission to examine administrative costs in the health care system, working with pharmacists to provide low-cost generic drugs to low-income Kansans and creating a program to educate Kansans on healthier living.

To pay for the “HealthyKansas” program, the cigarette tax would increase to $1.29 a pack from the current 79 cents. Also, the tax on other tobacco products would rise to 15 percent from 10 percent.

Sebelius, a Democrat, and Praeger, a Republican, said they are attempting to attack rising medical and prescription drug costs, make the health care system more efficient and expand health insurance coverage for working families.

They announced details of the plans Tuesday at the University of Kansas Medical Center, the first of six events scheduled across the state Tuesday and Wednesday.

They said nearly 300,000 Kansans can’t afford health insurance, even though almost all of them live in families where at least one person works.

The state already provides medical services for the poor, but one new initiative outlined by Sebelius and Praeger would make 30,000 more adults eligible in an effort to help low-wage workers.

Under another initiative, the state would be more aggressive about enrolling children of working families in state health insurance program. About 40,000 children who are eligible are not covered.

The two officials also want to expand the number of Kansans covered by private insurance through their employers, using state subsidies to help create affordable health plans.

Sebelius also announced that she is moving health care programs for the low-income residents and children to a newly formed Health Care Authority. Many of the programs were administered by the Department of Social and Rehabilitation Services.

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