State Watch | Indiana Lawmakers Approve Cigarette Tax Increase To Fund Health Insurance Plan

The Indiana Legislature on Sunday passed a bill (HB 1678) that would increase the state cigarette tax by 44 cents to fund a health insurance program for low-income, uninsured residents, the Indianapolis Star reports. The House voted 70-29 to approve the measure, and the Senate voted 37-13 in favor of the legislation. The bill is expected to generate an estimated $206 million annually, according to legislative fiscal analysts. The tax increase would fund Gov. Mitch Daniels' "Indiana Check-Up" insurance plan. Under the plan, individuals with incomes up to 200% of the federal poverty level would pay between 2% and 5% of their adjusted annual gross income for health coverage. The plan would:
Provide $500 in no-cost preventive health care, a $1,100 health savings account and up to $300,000 of annual insurance coverage from a private company;
Increase the number of children and pregnant women who are eligible for Medicaid;
Allow dependents up to age 24 to receive coverage through their parents' health insurance plans;
Create an insurance pool for small businesses; and
Provide tax incentives to companies that offer health insurance to employees.About 132,000 state residents would be eligible for the plan (Schneider, Indianapolis Star, 4/30). Daniels is expected to sign the bill