Proposal to fund Okla. Medicaid program with cigarette tax gets backing from healthcare groups

The Oklahoma Hospital Association and the Oklahoma Association of Health Care Providers urged lawmakers Wednesday to increase its tobacco tax by $1.50 per pack of cigarettes as a way to stave off a proposed 25 percent cut to Medicaid reimbursement rates, reports Public Radio Tulsa.

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Below are three things to know about the proposal.

1. Oklahoma Health Care Authority CEO Nico Gomez proposed the cigarette tax to lawmakers last week.

2. By taxing cigarettes an additional $1.50 per pack, the healthcare authority estimates the state would raise $182 million for its Medicaid program, enough to make the reimbursement cuts unnecessary.

3. OHA and OAHCP also said they support a plan to expand the state’s Insure Oklahoma program, which would allow Oklahoma to accept federal healthcare money. Oklahoma Hospital Association President Craig Jones said Medicaid expansion plan would reduce Oklahoma’s uninsured population by 30 percent.

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