Governor Mitch Daniels Signs House Enrolled Act 1678

“Today we are taking a long step toward the dream of a healthier Indiana. We are taking the longest, single step Indiana has ever taken in this direction,” said Daniels. “With the tools these brave legislators have provided us, now we must go about the difficult business, harder than you may think, of reaching those who would like to stop smoking with help, of finding the children who are not being immunized on time in this state and seeing that happens in every single case and reaching out to those without insurance to let them know about a great new opportunity that may apply to them, and then connecting them so they can go to bed tonight with a peace of mind of knowing they are protected.”

The plan includes a 44-cent increase in the price of cigarettes, which is estimated to discourage 40,000 fewer youth smokers and 23,400 fewer adult smokers. Thirty-three cents of the increase will be used to provide more needed childhood immunizations, the healthcare plan for low-income Hoosiers, smoking cessation programs, and help for small businesses to offer health insurance to their employees; 3 cents for increased Medicaid provider reimbursement rates, 5 cents for other health initiatives, and 3 cents for Section 125 plans (a plan that allows employers and employees to purchase health insurance on a pre-tax basis).

There is $11 million more for childhood immunizations and Indiana Tobacco and Prevention Cessation will receive a 50 percent increase in funding: $1.2 million from cigarette tax funds and a $4.2 million increase in its annual general funds ($10.8 million to $15 million).

“All by itself, raising the price of tobacco products will lead people of this state to finally cross over and stop smoking as 70 percent of Hoosier smokers say they would like to do. And of even greater importance, it will deter thousands and thousands of young people from ever experimenting with tobacco,” said Daniels.

Daniels introduced the plan last November, and the bill passed the Indiana House and Senate with bipartisan support. In addition to Rep. Charlie Brown, D-Gary, and Sen. Miller, R-Indianapolis, Sen. Vi Simpson, D-Bloomington, Rep. Tim Brown, R-Crawfordsville, Sen. Gary Dillon, R-Pierceton, and Sen. Earline Rogers, D-Gary, played a significant role in passage of the historic legislation.

“The stars were aligned in order for us to do this. It is indescribable what happened, that we were able to come together to pass this wonderful piece of legislation that is comprehensive in terms of covering mental illness, pregnant women, children, the works,” said Brown. “We have all come together to say that if we want to improve the quality of health care for the citizens of Indiana, then we need to take this bold step.”

“This will help individuals purchase affordable health insurance, and it will help businesses who don’t currently provide insurance for their employees to have health care coverage. That’s what we’re all about, making sure Hoosiers have health insurance,” said Miller. “I especially want to thank Governor Mitch Daniels who took the bold and courageous step last fall to propose legislation.”

Last week, the Indiana Family and Social Services Administration (FSSA) issued a Request for Services for implementation of the health insurance proposal. FSSA expects to begin enrollment of Hoosiers eligible for the health insurance program in the fall with a targeted effective coverage date of January 1, 2008. Public meetings about the process to secure services begin next week.

Coverage will be available to adults and pregnant women who earn up to 200 percent of the federal poverty level (for a family of four, 200 percent of federal poverty equals $40,000 annual income).

Other key components of the plan for uninsured Hoosiers include: