Group unveils plan for uninsured
By Jill Coley
Proposal would be funded by increase in cigarette tax
Covering Carolina Collaborative unveiled its plan this week to cover the state's uninsured residents with a proposed cigarette tax increase.
The plan is a combination of Medicaid expansion and tax credits for low-income individuals to purchase private insurance. Also, a high-risk pool would be formed to help low-income people who are uninsurable because of pre-existing conditions.
The collaborative comprises the S.C. Hospital Association, S.C. Medical Association, S.C. Chamber of Commerce and S.C. Alliance of Health Plans, a trade association for the insurance industry.
"We're excited to have a plan out there and advance the discussion," said collaborative Executive Director Robby Kerr. "We're not touting this as a solution to the health-care crisis, but incremental steps to help people who are having trouble affording health care."
The collaborative is looking to the proposed cigarette tax increase to fund the initiative, which is expected to cost about $230 million.
An increase has passed the state House and is now under consideration by a Senate panel that is deciding whether to approve the bill or to modify it.
South Carolina's current tax is one of the lowest in the nation at 7 cents per pack. Health-care advocates would like the tax raised to an even $1 per pack, still below the national average of $1.11.
An increase of at least 90 cents would be needed to fund the collaborative's proposal. That's 60 cents more than the 30-cent increase that passed the House.
Rep. Chip Limehouse, R- Charleston, a member of the House Ways and Means Committee, said that while the collaborative clearly put a lot of thought and time into their plan, it's very expensive. "I'm not wholly confident there's support for a greater (tax) increase," he said.
While most legislators are in agreement that the cigarette tax should fund health care, he said, how to disburse the revenue is yet to be determined. He favors putting the proceeds toward Medicaid dollars, which are matched $3 to $1, and toward nursing programs.
Limehouse also said he felt hesitant about parts of the collaborative's plan designed to help families earning more than $50,000 a year.
On the other hand, Lynn Bailey, a Columbia-based health-care consultant, criticized the proposal for overlooking the middle class.
"What about families with incomes from 250 percent to 500 percent of the federal poverty level, $42,000 to $86,000. These families can't afford $12,000 to $14,000 after taxes," Bailey said.
"I think it's a faulty strategy," she said. "You are asking the middle-income tax payers to fund a program they can't benefit from."
Bailey is affiliated with South Carolinians for Universal Health Care, a group that supports a single-payer health care system. She said she prefers a single-payer system as long as the insurance industry refuses to talk about market reform.
"We can't leave 600,000 in South Carolina without insurance and ever think we can control health care costs," she said. The collaborative's plan includes assistance to about 160,000 residents, while 700,000 residents are estimated to go without coverage.
Kerr of the collaborative said he appreciates that the proposal is a starting point. "It's never enough," he said. "And I'm aware it's a tight budget year. We're trying to put a framework of a policy out there that may be advanced."
A plan for the uninsured
Covering Carolina Collaborative's proposal to cover the state's uninsured residents contains four initiatives:
--Extend Medicaid coverage to all parents of low-income families living below 100 percent of the federal poverty level.
--Provide tax credit subsidies to individuals and small businesses for people living between 100 percent and 250 percent of the federal poverty level. These credits apply toward the purchase of health insurance coverage in the private market.
--Extend Medicaid coverage with state funds to uninsured children living between 200 percent and 250 percent of the poverty level.
--Create a high-risk compre- hensive safety net pool for otherwise uninsurable low- income individuals.
What is the federal poverty line?
The Census Bureau determines poverty thresholds annually. For the 48 contiguous states and Washington, D.C., they are as follows:
Persons in family Annual income 250 percent
1 $10,400 $26,000
2 $14,000 $35,000
3 $17,600 $44,000
4 $21,200 $53,000
5 $24,800 $62,000
6 $28,400 $71,000
Reach Jill Coley at 937-5719 or jcoley@postandcourier.com.
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Comments
moonpie (anonymous) says...
Well what about those of us that don't fall in this catagory? Why can't we model a national plan after Canada's? I interviewed with a Canadian company and insurance is a NON ISSUE for them. Before you spout off about had bad it is, everyone I met was extremely healthy AND loved their universal plan.
Don't let the lobbies from the HMO's, drug mfg's, and Dr's tell how much a mistake it would be. Look at it for yourself and talk to Canadians!
I commend SC for trying to do something but do it for all! WHO's paying when you raise cig taxes so high people start to quit?
January 25, 2008 at 6:26 a.m. ( permalink | suggest removal )
JohnS (anonymous) says...
Everyone always talks about socialized healthcare. There is no free lunch. Why don't they charge $7.00 a gallon for gas like they do in England. This is what pays for the healthcare. People will get sorry healthcare and also can not afford to drive anywhere.
If you want some cost to go down try tort reform for medical cases.
January 25, 2008 at 7:57 a.m. ( permalink | suggest removal )
mggoose2000 (anonymous) says...
Another Boondoggle Plan by the damn government!
We cannot expect anything like Canada's plan to work here; we don't have honest politicians that will put controls in place to keep it funded. The crooked politicians will borrow money from the plan to pay for pork barrel programs and hire their cronies to run it.
Until we get rid of the damn crooked legislators and good ol boy system, forget it. None of their programs will work.
I'm for voting all of the incumbents our of office and putting the newly elected on notice. Either get the situation under control, keep your politics honest or we'll vote you out also!
Let's face it, folks! Our country is a shameless sham. The people are being robbed by the oil companies, the businesses like Walmart and our own duly elected officials.
January 25, 2008 at 9:22 a.m. ( permalink | suggest removal )
mggoose2000 (anonymous) says...
One more thing; Have you looked, really looked at the Presidential Candidates?
Everyone of them, Republican or Democrat, scare the hell out of me!
January 25, 2008 at 9:23 a.m. ( permalink | suggest removal )
jsteph10 (anonymous) says...
Just curious palmetto, what does upholding the constitution have to do with this?
January 25, 2008 at 9:29 a.m. ( permalink | suggest removal )
PHiers (anonymous) says...
Who among you wonder why Congress has never changed the law so that small businesses can go in together and purchase group health insurance for their employees? I do!
Who among you do not want to give up their medical insurance for a "national" health insurance? Not me!
Who among you want some government bureaucrat making decisions about your health care? Not me!
Who among you understand that the way governments control health care costs in single payer national health care programs is by limiting the number of procedures performed thus causing long wait times for procedures considered non-essential? I do!
Who among you think that spending 4+ years in undergraduate school, 3+ years in medical school, and 3+ years in a residency program working an average of 12 hours per day all while incurring thousands of dollars of student loan debt is the characteristic of a greedy doctor? Not me!
Who among you want to have even more of your hard earned money confiscated to provide medical care to individuals who haven't the motivation to even get a job or stick with a job long enough to start receiving benefits such as health insurance? Not me!
Who among you think that the government should start paying for any of our insurance policies?
What would our founding fathers think of us if we are willing to give up our individualism and independence to a nanny state form of government?
January 25, 2008 at 9:34 a.m. ( permalink | suggest removal )
algorelost (anonymous) says...
Early,
I agree with you, we should put a tax on fatty foods to fund this plan. Eating unhealthy is just as bad as smoking. Fat people will be a greater strain on healcare system than smokers, and they don't get target like smokers.
January 25, 2008 at 9:35 a.m. ( permalink | suggest removal )
guiffb (anonymous) says...
The problem with tax credits are, (1), you need to file a tax return to get the credit and many low-income persons are not REQUIRED to file a tax return (unless of course they did indeed have withholding to get refunded). And more importantly, when you receive a tax refund check earmarked for health care insurance, many will need to buy food or pay the rent or the heating bill.
Universal health care -- believe in it.
January 25, 2008 at 9:57 a.m. ( permalink | suggest removal )
jsteph10 (anonymous) says...
palmetto, Please don't mention the Constitution and Canadian health care in the same post.
No where in the Constitution does it say that we have the right to demand health care. And it also doesn't give the government the right force health care upon you.
January 25, 2008 at 10:07 a.m. ( permalink | suggest removal )
mwelch (anonymous) says...
This is what kills me every time I hear about cost of health care and how to pay for it for the ones who really need it.
That it would be funded by increase in cigarette tax...
Why does the smokers have to be taxed to death to pay for EVERYONE'S health insurance? They should tax toilet paper Everyone uses it and that is a daily thing in everyone's life. Except here real soon we might not be able to buy even that, with gas, food , and oil.
Corn - Corn will be taxed to death also. The price of corn is going to sky rocket as well. Needed for new fuel. Oh wait, most of the farmers were ran out after late 80's. drive from here to Florence now and see how much corn and cotton you see. Before you would see Family Farms all over. HWY 176 to Columbia. Deserted in most areas now. I feel bad for our farmers. I do buy local when I can. Meat & Veggies.
NO I didn't read the news article, nor do I care to. Because the first line did it for me,,,. Here we go again. In 80's a pack of cigarettes were about 1.05 now they are 4.00 & higher up north. Gas 5 yrs ago less than $2. Were feeling the pain, loosening our jobs, homes, and other things. We don't qualify for help, stuck rejected denied. However if we quit our jobs then we could get 100%..
Ok that's all I got to say about that. Thanks for letting me spill. I read user comments and agree with most of them. Never have posted till now.
TAX THE TOILET PAPER!!!!!!!!!
By the way my Husband and I work 40 + hours a week make pretty good $ and have health insurance.
Not out in the cold yet. As one gentleman said were on the way.. Not far..
Happy Friday Everyone.
January 25, 2008 at 10:38 a.m. ( permalink | suggest removal )
CHRISJIII (anonymous) says...
While I support the idea that everyone should have health insurance in this country. I fail to see why the burden should be put on the backs of smokers. This is just another example of legislators in this state not thinking things through before opening their mouths.
January 25, 2008 at 11:04 a.m. ( permalink | suggest removal )
lisagary (anonymous) says...
Oh, the delicious irony...funding health insurance with a cigarette tax.
I wonder what percentage of those uninsured people are also smokers (many, I'd bet money on it), who will ultimately drive up the premiums of those of us who don't smoke because they'll need many years of medical treatment for chronic conditions related to smoking.
Kind of blows the mind.
January 25, 2008 at 11:06 a.m. ( permalink | suggest removal )
flinsc (anonymous) says...
We need to stand up and fight. The way the government is formed is killing this country. Back to the foundation. We are a Republic.
January 25, 2008 at 11:08 a.m. ( permalink | suggest removal )
lisagary (anonymous) says...
"The problem with tax credits are, (1), you need to file a tax return to get the credit and many low-income persons are not REQUIRED to file a tax return (unless of course they did indeed have withholding to get refunded)."
Actually, guiffb, just to clarify one thing, every US citizen who receives income of any kind is indeed required to file a tax return, whether or not they owe taxes or are entitled to a refund. I work for tax attorneys, and I assure you that even if you only earned a couple thousand dollars in a tax year and think you won't possibly owe anything, the IRS doesn't take kindly to years and years of missing returns. Everyone with a social security number who earns any income of any kind must report it. Period.
January 25, 2008 at 11:14 a.m. ( permalink | suggest removal )
lisagary (anonymous) says...
OK, last time to comment today -- I misspoke about the tax filing requirement and want to correct my error. Anyone who has received income and had any taxes withheld SHOULD file a tax return because they may have money coming back to them. But if you're married and file jointly, technically you don't HAVE to file unless you make more than $17,500, or more than $400.00 if you're self-employed. It's still a good idea to file anyway, because as I said, if the IRS can't determine a history of tax paying, it tends to make them investigate further.
What can I say, I work for corporate tax attorneys who prepare large corporation returns, and should have checked my facts before spouting off! I always admit when I'm wrong, and this time I was. My apologies.
January 25, 2008 at 11:40 a.m. ( permalink | suggest removal )
Girleygirl (anonymous) says...
I agree with the majority of all of you all. Lisa- good point I wonder how many of those uninsured smoke as well...
One thing I noticed was 5 years ago I still have the same thing and yet 5 years later I am struggling because of all the taxes and everything that I have to pay out.
I have tried to apply for food stamps, medicaid, section 8 and WIC, but was denied because they say I make too much money. At the same time my pay is not moving up much but the price of bread, bleach, heat, and rent is rising. I once was part of the middle class but now I consider myself broke/poor. I can't get help from the government to help me get my child support or a little bit of help for just a quick minute but I can count on them to increase a tax.
I don't understand how a cigarette tax would help.
January 25, 2008 at 12:08 p.m. ( permalink | suggest removal )
Edwin435 (anonymous) says...
there is no middle class anymore.....
January 25, 2008 at 1:24 p.m. ( permalink | suggest removal )
ln1959 (anonymous) says...
Why do you all think that every politician in congress are millionaires. They get the inside scope on stocks like medication and push the bills so they get richer. There use to be a time when the politician really cared about the people, now the old guys are thinking about retirement and filling there pockets from tax payers money. 50% tax was mention by Earl, but if you think about it (which I did the about two nights ago), we continue to pay tax on the money we make every week, two weeks or bi-monthly. Go to the store, pay food tax. Buy gas, pay fuel tax, go out to eat, pay restaurant tax. Stay in a hotel, pay hotel tax, so when do we not pay tax. Pay car tax and there is tax on that. Get car fixed, and there is tax on that. Which part of the money belongs to US..
January 25, 2008 at 2:22 p.m. ( permalink | suggest removal )
KidYendor (anonymous) says...
My plan is better than this. All taxpayers earning over $8,000 dollars year will receive a percentage number based on their declared state income tax. This percentage number is the percentage of their payment of the entire state personal income tax revenue pool. Twenty-five percent of the cigarette tax will go into the state general fund. Seventy-five percent will be divided by the state taxpayers multiplied by their percentage rate/number and checks will be mailed to them. This will encourage an above ground economy. People will honestly declare because with their higher number they will get a bigger check. People will be encouraged to work. Smokers will get some money back too. If there has to be a cigarette tax increase this plan and resulting check will stimulate the economy for all and not just benefit welfare people.
January 25, 2008 at 2:46 p.m. ( permalink | suggest removal )
healtheconomist (anonymous) says...
Just curious, what do you'll propose to do when someone without health insurance gets sick or injured and can't pay for their medical care? Should we just let those folks die? Should I have to trade all my wealth for my health? If I don't have much wealth then I don't get to keep my health?
Do we only help those who are deserving, or in other words are sick or injured through no fault of their own?
Since the Constitution guarantees "life, liberty, and the pursuit of happiness..." do we owe our fellow citizens a crack at life preserving healthcare?
January 25, 2008 at 3:31 p.m. ( permalink | suggest removal )
LutherVanderhorst (anonymous) says...
I sell clothes, and I think the government should provide a clothing allowance to all citizens. Wait, that would be self-serving. Why then do we let doctors and nurses lip off about spending taxpayer's money that's going to wind up in their pocket?
January 25, 2008 at 7:30 p.m. ( permalink | suggest removal )
outrage (anonymous) says...
Why cigarettes? I know more people who have died from alcohol related incidents, or diseases.
Obesity, now that's a problem. Tax everyone who is more than 15 pounds over weight and we wouldn't have to tax anything else. My point is - why cigarettes, tax everything sinful.
January 25, 2008 at 8:08 p.m. ( permalink | suggest removal )
just1reader (anonymous) says...
How about this? Want to tax anyone and everyone 15 pounds overweight? Just shut down all the restaurants and tax food to where no one can afford to eat over 1500 calories a day! Problem solved!
January 25, 2008 at 8:24 p.m. ( permalink | suggest removal )
Bosco (anonymous) says...
As long as we're at it....why don't we provide everyone with transportation...hey...everyone deserves a home, right? We are slowly becoming a society where people feel they have a "right" to have everything....where in the Constitution does it say all of this? I happen to work with people on health insurance, and I can't tell you the number of people who refuse coverage when it is offered by an employer, and even if it is as low as $75 per month. This occurred just the other day and this young girl then became part of the "47 million" without health insurance. I admit health insurnace isn't cheap, but I also see far too many people who could afford it and decide to spend their $'s elsewhere. They would rather spend their money on other things like a new car, a big phone bill, cable bill....it's called priorities people....I'm all for helping people who need the help, but many more just want a hand out.
January 26, 2008 at 3:26 p.m. ( permalink | suggest removal )
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