Cigarette Tax Increase
Yesterday the House passed a fifty cent tax increase on a pack of cigarettes in South Carolina. The following is an explanation of the bill. This bill imposes a surtax on each cigarette in an amount of two and one-half cents (50 cents total per pack) which will raise an estimated $147,300,000, and provides for the crediting of the revenue surtax to:1. The Smoking Prevention and Cessation Trust Fund - $5,000,000
2. The Department of Agriculture for marketing and branding state-grown crops and to assist in relief from natural disasters affecting state-grown crops - $2,966,000
3. The South Carolina Healthy Families Insurance Trust Fund and the Palmetto Health Care Safety Net Trust Fund – approximately $139,000,000*
*$139,000,000 breakdown: 70% to the South Carolina Health Families Trust Fund
20% to the Palmetto Health Care Safety Net Trust Fund
10% is set aside as a “safety net” ensuring the Funds stay solvent
South Carolina Healthy Families Insurance Plan - Provides a premium to an individual meeting the requirements of 75% of the actual cost of a qualifying plan up to $3,000, or a small employer may receive a credit of 67% of the actual cost of a qualifying plan up to $3,000
South Carolina Dept. of Insurance may adjust the amount of the premium, but it may never drop under 50% of the actual cost of coverage.
Eligibility:
Applicants Family/Household is less than 200% of the Federal Poverty Level
Applicant is a US citizen and has been for the past 12 months.
Applicant is not eligible or not enrolled in Medicare/Medicaid/Other Federal Government Health Insurance Programs.
Applicant is between ages of 19 and 64.
DOI has not issued maximum # of eligibility certificates (closed enrollment)
Each eligible person in a qualifying household must receive a certificate of eligibility.
Palmetto Health Care Safety Net Program - Establishes a self-sustaining and financially independent portion of the premium assistance pool.
Eligibility:
At least 19 years of age.
US Citizen for 60 months immediately preceding application
Family is less than 400% of Poverty Level
Agrees to participate in Palmetto Health Care Safety Net Program
Not eligible or enrolled in Medicare/Medicaid/Other Govt. Health Plans
Premium Schedule for Palmetto Health Care Safety Net Program:
Household Income = less than 100% of poverty level = $1,000
Household Income = between 100% and 200% of poverty level = $2,000
Household Income = between 200% and 300% of poverty level = $3,000
Household Income = between 300% and 400% of poverty level = $4,000