SCHIP Reauthorized
by Lance Armstrong16 Comments
I’m pleased to report that President Barack Obama signed the State Children’s Health Insurance Program Reauthorization Act into law this afternoon. The Lance Armstrong Foundation (LAF) strongly supported this legislation, which will expand access to health coverage for approximately 4 million children who currently lack health insurance. In order to help fund this expansion of coverage, the new law raises increases the current federal excise tax on cigarettes by 61 cents a pack. Not only is increasing health care coverage for children critical in the fight against cancer, but so too is increasing the tax on tobacco. Research indicates that raising the cost of cigarettes is an effective way to reduce youth smoking, which in turn will lower cancer incidence and save health care dollars. The Campaign for Tobacco Free Kids estimates that the cigarette tax increase will produce the following public health benefit:
- Increase in total number of kids alive today who will not become smokers: 1,992,000
- Number of current adult smokers in the US who will quit: 1,020,000
- Number of smoking-affected births avoided over next five years: 248,000
- Number of total smokers saved from future smoking-caused death: 905,000
- 5-year health care savings from fewer smoking-affected pregnancies & births: $423.2 million
- 5-year health care savings from fewer smoking-caused heart attacks & strokes: $493.3 million
- Long-term healthcare savings in the US from adult & youth smoking declines: $44.5 billion
- Share of healthcare savings in federal-state Medicaid program: $7.5 billion
- Share of healthcare savings in federal Medicare program: $8.6
This new law could not have come at a better time — the current economic situation in the United States has made the expansion of SCHIP even more critical. We applaud Congress and the President for taking such a historic step today.

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