Governor Brown: House Bill 2270 will improve health and save lives
/Bill increases tobacco tax, creates tax on e-cigarettes
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Kate Brown (D), Governor of Oregon
Salem, Ore. — Governor Kate Brown today detailed her support for House Bill 2270, which raises the cost of tobacco products in Oregon to improve health and stabilize funding for the Oregon Health Plan.
"House Bill 2270 will improve health and save lives," Governor Brown told the House Revenue Committee. "Tobacco is still the No. 1 preventable cause of disease and death in Oregon. By increasing the cost of tobacco products and e-cigarettes, House Bill 2270 not only provides the funding we need to continue to provide health coverage to Oregonians, it invests in prevention and cessation to improve the health of our communities."
House Bill 2270 is the third part of Governor Brown's proposal to provide long-term sustainable funding for the Oregon Health Plan. Governor Brown signed the first two pieces, in House Bill 2010, last month. The fourth component, the Employer Health Care Responsibility Act (House Bill 2269), is a spending requirement on employers who do not contribute a minimum amount toward the health care costs of their employees.
In addition to raising the cigarette tax by $2 per pack, House Bill 2270 for the first time taxes e-cigarettes. The U.S. Surgeon General reports that 1 in 5 high school students and 1 in 20 middle school students use e-cigarettes.
House Bill 2270 is estimated to raise $346 million per biennium. While 90 percent of the revenue will go to the Oregon Health Plan, 10 percent will go toward investments in tribes, culturally specific organizations, and state and local public health to expand cessation efforts.
Full testimony
“Chair Nathanson, Vice Chair Findley and Marsh, members of the Committee. For the record I am Governor Kate Brown. I am here today in support of House Bill 2270, which will generate an additional $346 million for the Oregon Health Plan.
House Bill 2270 is one part of a six-year revenue package to provide long-term sustainable funding for the Oregon Health Plan. By increasing the cost of tobacco products and e-cigarettes, House Bill 2270 not only provides the funding we need to continue to provide health coverage to Oregonians, it invests in prevention and cessation to improve the health of our communities.
The health care funding package was developed by a workgroup I convened a year ago. The workgroup consisted of leaders from health care, business, labor, and community organizations. Their charge was to identify long-term sustainable funding for the Oregon Health Plan without cutting eligibility or benefits. I would like to thank members of the workgroup for their consensus-driven approach to solving our health care funding challenge. I have already signed the first two pieces, House Bill 2010, into law.
House Bill 2270 will improve health and save lives. Tobacco is still the Number 1 preventable cause of disease and death in Oregon. 27% of adults on OHP smoke, and the cost of tobacco-related illnesses — including asthma, heart disease, and low-birth weight babies — accounts for 9% of total spending of the Oregon Health Plan.
Our current cigarette tax rate is among the lowest in the nation. Raising the tobacco tax by $2 per pack will put Oregon on par with nearby states. It’s an effective and proven way to get people to quit smoking.
In addition to increasing the cigarette tax, House Bill 2270 for the first time taxes e-cigarettes. They are among the most popular nicotine product among Oregon youth. The U.S. Surgeon General reports that 1 in 5 high school students and 1 in 20 middle school students use e-cigarettes. Raising the price on e-cigarettes will go a long way toward preventing kids from becoming addicted from these very harmful products.
Finally, we know that two-thirds of people on the Oregon Health Plan who smoke want to quit. 10 percent of the revenue raised by House Bill 2270 will go toward investments in tribes, culturally specific organizations, and state and local public health to expand cessation efforts. Big tobacco companies have targeted low-income communities and communities of color for decades. We need to make sure these communities have the resources they need help people quit.
The majority of Oregonians support this increase. I urge you to swiftly pass House Bill 2270.
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Press release provided from the ___ .