Bullock brings campaign for I-185 to CMC rally in Missoula
Ballots go out next Friday, and one of the things voters will decide on is whether to tax tobacco products to fund Medicaid expansion.
Around 100 people gathered outside Community Medical Center in Missoula Wednesday to rally for I-185, including Gov. Steve Bullock.
“Medicaid expansion has been good for the 100,000 Montanans that received it, for our rural hospitals — keeping their doors open — and for our overall economy,” said Bullock.
I-185 would increase taxes on all tobacco products including electronic cigarettes and vaping. The taxes would be increased by $2 per pack of cigarettes and would bring the total taxes up to $3.70. Revenue would be used to extend and fund expanded eligibility of Medicaid coverage under the Affordable Care Act in Montana and other programs.
Bullock and other proponents say it would help people stop smoking and prevent kids from starting smoking as well as prevent 100,000 people from losing their existing health care coverage.
However, opponents to the initiative say the numbers don’t add up.
“The inner logic of it doesn’t make much sense. You can’t say it’s going to decrease tobacco use and increase revenue at the same time. Because if the decrease in tobacco happens, you don’t have as much revenue,” said David Herbst, Montana director for Americans for Prosperity.
The ballot language says “Revenues may decline as fewer people use tobacco. The state must pay a percentage of the cost of the extended Medicaid services.”
That’s something Bullock says is worth the cost.
“At the end of the day, if what this did is made it so that people quit smoking and chewing, so our young kids quit getting addicted, the costs that we would save as a state — because every household right now pays about $800 a year in taxes for tobacco related illnesses — it would more than take care of itself long-term,” said Bullock.
Herbst has more problems with the initiative.
“The proponents say that the money is going to be used to expand Medicaid but only a small portion of it is actually going to be used to do that. The rest of it goes into the general fund,” said Herbst.
He says it also makes it so legislators won’t review the program to see if it’s still working.
“It takes the sunset out, which will damage the ability for the legislature to have any reason to go back and actually approve this program. And it just aligns bad incentives,” said Herbst. “So you’re making this thing that has to happen, has to be maintained by the legislature and by the budget, but then you don’t fund it. And then you fund it with a sin tax.”
“The only people that will be paying additional costs would be those who are smoking, chewing, vaping. It fully funds the overall program, it adds new money for senior citizens and our veterans, who desperately have earned the services and they deserve it,” said Bullock.
Montana voters have five weeks to make up their minds.