Signature-gathering will begin on initiative to raise tobacco taxes and extend Medicaid expansion

KPAX

A proposed ballot measure that would increase state tobacco taxes and extend Montana’s expanded Medicaid program for 94,000 low-income adults has been approved for signature-gathering.

A coalition of supporters also plans to kick off its campaign Thursday to gather the 25,000-plus signatures of registered voters needed to qualify Initiative 185 for the November ballot.

“We have a short turnaround time for collecting signatures, but I’m super-excited about the energy and the support of this initiative,” said Kristin Page-Page-Nei of the American Cancer Society/Cancer Action Network. “I have no doubt that we’re going to be able to qualify this.”

Signatures must be submitted to county election offices by June 22. A ballot measure needs at least 25,468 signatures statewide to qualify for the ballot and the signatures of at least 5 percent of the registered voters in at least 34 state House districts.

I-185, supported by a coalition of health and health-care organizations, would increase state taxes on a pack of cigarettes by $2, from the current $1.70 per pack to $3.70 per pack.

It also increases taxes on other tobacco products, such as moist snuff, and e-cigarette supplies, and would remove a portion of state law that says Montana’s Medicaid expansion will expire July 2019, thus extending the program.

Medicaid expansion provides government-funded health coverage for childless adults earning up to 138 percent of the federal poverty level, or about $16,600 for a single person.

The federal government funds about 95 percent of the program now, but its support declines to 90 percent by 2020. The state must pick up the rest of the cost.

Under I-185, up to $26 million of the revenue from the higher tobacco taxes would be earmarked for the state share of Medicaid expansion — but the state share is expected to be more than that amount, once the federal share drops to 90 percent.

Nei said supporters believe the higher tobacco tax would raise about $50 million a year. Language in I-185 says 52 percent of the new revenue would to go Medicaid expansion, up to $26 million a year; 10 percent would pay for home- and community-based health services for the elderly served by Medicaid; 6 percent would go to tobacco-prevention programs; 4 percent for military veterans’ health programs; and the remainder goes to other health programs that already receive tobacco-tax revenue.

“This is just a very important ballot initiative,” she said. “It’s the one on the ballot that can save lives, save money and significantly improve the health of Montana. … We’re going to prevent kids from smoking, help people quit, and that will result in quite a bit of reduction in health-care costs, due to tobacco use.”