JAMM AQUINO / JAQUINO@STARBULLETIN.COM Nicholas Head rang up a tobacco customer yesterday at Tobaccos of Hawaii on Atkinson Drive. A proposal approved yesterday by a joint Senate and House conference committee would raise the tax on a pack of cigarettes by $1.20 over the next six years. The bill is among many up for final vote next week in the Legislature.

Cigarette tax: $1.20 hike proposed

Also before legislators is universal medical coverage for children

Hawaii could be the state with the highest cigarette tax in the nation after lawmakers approve a bill that will raise the tax on a pack of cigarettes by $1.20 over the next six years.

The cigarette tax is one of two significant health care measures that the Legislature will vote on next week.

Under the other bill, Hawaii could become the first state to provide health coverage for all children under a Keiki Care plan.

Under the cigarette tax measure approved yesterday by a House and Senate conference committee, the tax on a pack of cigarettes will rise 20 cents each year for the next six years.

A pack of cigarettes here currently costs approximately $4.50 to $5.50. The state cigarette tax accounts for $1.40 a pack. Rhode Island has the highest tax in the nation, at $2.40 per pack. After six years Hawaii's tax will be $2.60 per pack.

Revenue from the tax increase will be shared by the Cancer Research Center of Hawaii, emergency medical services, trauma care and the community health centers.

The Keiki Care bill agreed to yesterday would establish a three-year pilot program of health coverage for children ineligible for any state or federal health care coverage. The state and the Hawaii Medical Service Association would split costs of about $600,000 each.

A family earning up to 300 percent of the federal poverty level -- about $60,000 for a family of four -- would qualify, said House Health Chairman Dennis Arakaki.

"This is a big, big step for universal health," said Senate Human Services Chairwoman Suzanne Chun Oakland (D, Kalihi-Liliha) after agreement on the children's health insurance program (HB 3116).

Arakaki (D, Alewa Heights-Kalihi Valley) said 10,000 Isle children still have no health insurance.

Because of the high cost of living, many families above 200 percent of the poverty level, who are ineligible for the state's QUEST health program, cannot afford health insurance for their children, said Beth Giesting, Hawaii Primary Care Association executive director.

The Keiki Care program will be free to any families, including immigrants, she said. The $1.2 million fund might not be enough to pay for the program if kids are picked up with serious medical problems, she said. "But at least they will be getting some care."

The conferees also approved a bill that would establish a Hawaii Health Commission to develop a universal-care plan. "The goal is to provide health care for all Hawaii's people," Arakaki said. "It is a vision, but you can't get anywhere without vision."

JAMM AQUINO / JAQUINO@STARBULLETIN.COM A legislative conference committee approved a bill yesterday that would raise the tax on a pack of cigarettes by 20 cents a year for six years.

Conferees approved a comprehensive smoking ban last week in state- and county-owned facilities, workplaces and public places, including bars, to protect the public from secondhand smoke.

"I'm elated, just elated," said Jackie Young, representing the American Cancer Society. "I thought there would be one bill or another but not both."

"We were hoping for more," said Don Weisman, chairman of the Coalition for a Tobacco Free Hawaii's policy committee, but "this is the icing on the cake," he said. "It should help to reduce smoking in the state."

Legislators estimate the increased tax will generate about $11 million or more a year. The first year, the money is earmarked for the Cancer Research Center, which needs to cover rent and operations of its new Kakaako building after it is constructed.

For the balance of the six years, the money will be divided between the cancer center, trauma and emergency medical services, and community health centers.

If people stop smoking and revenues drop, "It would be the greatest thing we could achieve in public health history," Arakaki said.

"It is very difficult for some of us to support a tax increase," said Republican Sen. Fred Hemmings (Lanikai-Waimanalo), "but smoking is a greater evil than a tax increase."

Senate Health Chairwoman Rosalyn Baker (D, Honokohau-Makena) said she would have liked to see the tax increased faster than six years, but the bill is a good compromise and will benefit worthy organizations.

"I am gratified that we are passing a measure that will be saving lives in Hawaii," said Rep. Joshua Green (D, Keauhou-Honokohau), a doctor.