Dozens of Organizations Push for Tobacco Tax to Pay for Children’s Health Coverage

Groups Seek a Tobacco Tax Increase of 61 Cents to Support Expanded Health Coverage for Uninsured Children

Washington, D.C. – A large number of diverse national organizations today called for a federal tobacco tax increase of 61 cents to help underwrite expanded health coverage for America’s uninsured children. In a joint letter sent by 67 organizations, the groups said that expanding children’s health coverage while discouraging tobacco use would create a “win-win proposition in support of our children’s health.”

The letter, addressed to the chairs and ranking members of the Senate Finance, House Energy and Commerce, and House Ways and Means Committees, was sent by such diverse organizations as the American Academy of Pediatrics, the American Cancer Society, the American Hospital Association, the American Medical Association, the American Public Health Association, America’s Health Insurance Plans, the Campaign for Tobacco Free Kids, the Child Welfare League of America, Families USA, Kaiser Permanente, the March of Dimes, and the Service Employees International Union.

In the recently passed budget resolution, Congress set aside $50 billion in new federal funds over the next five years for use in the State Children’s Health Insurance Program (SCHIP), which is scheduled to be reauthorized this year. However, based on new “pay-as-you-go” rules, these funds will be made available only if Congress pays for these funds with new revenues and/or cost reductions in other programs. The letter sent by the groups urges that a key source for meeting this “pay-as-you-go” requirement is through an increased tobacco tax.

The letter indicates that “every 10 percent increase in the price of cigarettes reduces youth smoking by seven percent and overall cigarette consumption by four percent.” The additional proceeds for this proposed tax could help provide health insurance coverage for many of the 8-9 million uninsured children in the U.S.  

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

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