Health-care help up in smoke
For awhile it appeared that South Carolina would finally see approval of a cigarette-tax hike to help cash-strapped residents pay for health care. Instead, the Legislature again extended its record of futility.
Despite eight years of intermittent debate, the General Assembly has yet to increase the cigarette tax. This year's failure means the state will lose out on nearly $150 million for health care, and the likelihood of additional federal matching funds as well.
But the Legislature retained the nation's lowest cigarette tax of 7 cents per pack. South Carolina's cigarette tax hasn't been raised in more than 30 years.
The House endorsed a solid proposal, with bipartisan support that would have increased the cigarette tax by 50 cents to fund a medical insurance program for the working poor. It was modeled after a similar program in Oklahoma and, based on that state's experience, would have been eligible for matching Medi-caid money.
The tax also would have paid for smoking-cessation programs aimed at teens. The tax would have amounted to less than half the national per-pack average.
Unfortunately, the Senate rejected the House plan shortly before the session ended, and instead voted to put the money in a trust fund, pending approval of a program both chambers could endorse. The House wouldn't agree and the tax hike was dead for the year.
Senate opposition to the House plan was led by Sen. John Land, D-Manning, who wanted to use cigarette tax revenue for a general expansion of Medicaid eligibility. Land, the Senate minority leader, called the House plan "silly."
Speaker Bobby Harrell, R-Charleston, said Wednesday that the House plan sought to maximize the availability of medical insurance while requiring employer and employee contributions. The Senate, in contrast, "wanted to expand an entitlement program."
Because cigarette smoking declines as the price per pack rises, the tax hike would have had the additional benefit of cutting an unhealthy habit, particularly among teens. That alone was reason enough to pass the tax increase.
By scuttling the House plan, the Senate effectively denied medical insurance to tens of thousands of South Carolinians. Its passage would have been a major achievement in an otherwise disappointing session.
South Carolina's working poor could have used the help in a tough recession year.
