Smoked Out: Arizona’s unfortunate reliance on tobacco industry revenues to fund health insurance.

Reason Magazine ^ | July 6, 2011 | Peter Suderman

[Eric Blair 2084]

Arizona has a major public health problem: Too few people are smoking.

That’s not the only fiscal problem the state faces. But it’s one of them. Like many states, Arizona’s public finances are in miserable shape. And much of the state’s budget trouble can be attributed to a decade-old decision to finance an expansion of low-income health insurance coverage with revenue dependent on tobacco industry profits.

A little more than a decade ago, the state grew its low-income health insurance rolls, claiming the new enrollees would be paid for by revenue from a deal with tobacco industry. Now, with smoking rates (and tobacco industry revenues) falling, a budget crisis brewing, and a growing number of individuals eligible for Medicaid, the state has chosen to pare back its health coverage for low-income adults.

Starting July 8, the state’s Medicaid program will implement changes expected to reduce the program’s rolls by 117,000 single, childless adults over the next year. After much delay, the Obama administration last week finally granted Arizona permission to go through with the cuts, but only grudgingly. "We regret the action Arizona is taking," a federal Medicaid official told The Arizona Republic.

[Eric Blair 2084]

There IS a God...and he has a great sense of humor!!!!

[Eric Blair 2084]

Big Brother, Nanny State, Grant Junkie, Bogus Study, Junk Science, Social Engineering, Egalitarian, Central Planning, Sheeple Control, Food Cop, Smoke Nazi, Socialism, Collectivism PING

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Preamble:

We the People Sheeple of the United States Nanny State, in Order to form a more perfect Union Socialist Utopia, establish Justice Socially engineer a country of non smoking, physically fit, seat belt and helmet wearing teetotalers, ensure domestic Tranquility Smoking bans in bars, limits on unhealthy food and social drinking, provide for the common defense Universal Healthcare, promote the general Welfare health of the population whether they like it or not, in order to save above mentioned Universal Healthcare entitlement program from bankruptcy, and secure the Blessings of Liberty Dependency to ourselves progressive liberals and our Posterity Hitler Youth who we brainwash through public school education, do ordain decree and establish this Constitution for the United States of America. Nanny State of Liberals.

[annelizly]

ROFLMAO!!!!!

[RetiredTexasVet]

A bureaucrat (even if a blood sucking lawyer) never understands the “law of unintended consequences”. You can speak slowly and distinctly, with exaggerated lip motions, using small words in simple sentences, but they will not understand ... they have no capacity for common sense.

[Ruy Dias de Bivar]

I’m trying to remember where I saw that picture first! Playboy or Esquire, 44 years ago!

[cpdiii]

After decades of imposing billions in public health costs on taxpayers, the tobacco industry was finally forced to pay for its sins. But the practical effect was to make states partners with the very industry those states were ostensibly trying to punish

Actually smoking reduces total health care costs. Most smokers do not die of cancer. However, they do die very efficiently from hypertension, Congestive Heart Failure and other smoking related disease. If you look at the total health care dollars for smokers it is less than for the non smokers. Non smokers have a tendency to have hang around for a long time in the end stages of life and that is expensive.

Smoking and the lottery are a tax on the stupid.

[Amberdawn]

Gee, and I thought these taxes were to pay for smoking related costs...

[Eric Blair 2084]

Smoking and the lottery are a tax on the stupid.

---

That’s a little harsh. There are plenty of smokers and ex smokers who are smarter than you.

But your point about regressive taxation is pertinent. Obama promised to not raise taxes on anyone making less than $250,000 or a gazillion dollars per year. Yet he hiked the Federal excise tax on cigs to a buck. A tax that disproportionately effects the poor.

Rich smokers like Charlie Sheen, Brittany Spears or Whoopi Goldberg don’t care.

[boop]

Hmmm...if a pack of smokes costs $11 in NYC and the evil tobacco company makes 40 cents, I’d say that smokers already paid for their medical costs, many times over. And if the smoker has private insurance, the “state” gets off scot-free from paying. The whole “it’s for the chilluns’” ruse is getting old. In almost all states, the tobacco taxes don’t go for care for sick smokers or “reducing” smoking, they go into general revenues. And these states RELY on the tobacco settlement $ as part of their budgets.

[Ken H]

From the NY Post Nov 26, 2010:

Black-market cigarettes costing NY $20M a month 

The underground tobacco market is spreading like a fast-growing cancer in the wake of tax hikes...

http://www.nypost.com/p/news/local/burned_by_bootleg_smokes_IqtVTHYSTsWW6KcabOliRO

[Thrownatbirth]

That’s a great feeling that comes with quitting smoking. I know somewhere about $150 a month is suddenly missing from some state apparatchik’s ledger. F*** ‘em.

[Drango]

bummer dude.

[Eric Blair 2084]

So true.

[Eric Blair 2084]

Those bootleggers or buttleggers in this case are heroes. Like the moonshine runners during prohibition.

The real criminals are the leftist social engineering big gubmint libs and their henchmen.

[Ken H]

Arizona has a $2.00/pack tax, which puts it in a 5-way tie for 10th highest among the states.¹ I wonder if that's been increased recently. Perhaps enough people are buying them on the black market that revenues are affected. (see post #10)

¹http://www.ncsl.org/default.aspx?tabid=14349

[Eric Blair 2084]

There are lots of Native American reservations in AZ.

[Umanbean]

Arizona Dept. of Health or whatever the proper name is, employs people to ensure compliance with this law. In addition to the job, they are provided a vehicle to drive around and make sure buildings that admit the public display a non-smoking order sticker. Even if you, as a property owner or business owner, do not permit smoking, you must display THE STICKER. If you do not display the sticker, the employee will see that a fine, a daily fine, is imposed upon you, until you display the sticker. Then after a long and distinguished career as a sticker checker, the public servant is rewarded, I mean “earns”, a generous retirement for their service.

[Alamo-Girl]

Thanks for the ping!

[LowOiL]

Actually smoking reduces total health care costs.

I would be interested in where the data is for this statement. Not doubting it, and I have heard it said more than once on FR. But I would like the science behind said statement.

Pretty Please.

[cpdiii]

I am an ex smoker but not a anti smoking Nazi.

Relative to the tax on the stupid, I do play the lotto on occasion. :)