IMMEDIATE RELEASE: Hospital leaders applaud Florida Senate for support of tobacco surcharge
Apr 09, 2009By: Rich Rasmussen
 FOR IMMEDIATE RELEASE April 9, 2009 Hospital leaders applaud Florida Senate for support of tobacco surcharge Directing $1 billion in surcharge revenue to Medicaid programs will help maintain federal funding for health care in Florida TALLAHASSEE – The Florida Hospital Association commends the Florida Senate for its support of the surcharge on tobacco products to pay for smoking-related health care costs in Florida. The proviso language included by Senate budget writers now directs the surcharge revenue toward Medicaid programs. “Maintaining state support for Medicaid will allow Florida to take full advantage of enhanced federal matching funds,” said Bruce Rueben, President and CEO of the Florida Hospital Association. “For every dollar that Florida spends on health care, the federal government gives us more than two dollars in matching money. As the budget conference evolves, the Florida Hospital Association will advocate for use of a portion of this surcharge as a recurring funding source for the Medicaid Medically Needy and Medicaid Aged/Disabled programs, which serve approximately 40,000 of the state’s sickest, most vulnerable citizens.“ The federal stimulus bill passed in March (ARRA) increased the Federal Medical Assistance Percentage that guides how much federal matching money states receive for Medicaid programs. The federal match is intended to serve as an incentive for states to commit resources to their Medicaid programs. Florida’s current matching percentage of 32.36% means the state will receive a match of more than two to one in federal money. The $1 billion raised by the tobacco surcharge would help offset Florida’s smoking-related Medicaid costs estimated at $1.3 billion. Smoking also has a dramatic impact on the state economy. A 2008 study commissioned by the Florida Institute for Smoking Cessation found that smoking costs the state economy more than $20 billion per year. The cost is equivalent to $6,942 per smoker, or $17.22 per each $3.75 pack of cigarettes. Additionally, Florida’s hospitals annually provide more than $2.5 billion in free care, on a cost basis, to the state’s uninsured. # # # |
