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February 26, 2018

Lobbying on cigarette tax ramps up, with foundation's ads and tobacco firm's use of farmers, retailers and paid media report

RAISING CIG TAXRAISING CIG TAXRaising the state cigarette tax $1 a pack is an active idea among members of the Ky. General Assembly

FRANKFORT, Ky. -- If activity by lobbying interests is any indication, the idea of raising the state cigarette tax $1 a pack is an active idea among members of the Kentucky General Assembly.

The main group advocating the tax increase, the Foundation for a Healthy Kentucky, reported spending more than any other lobby during the first month of the session. Its total of $100,240 was not far ahead of collective spending by tobacco companies that oppose the tax hike, which totaled $95,218.

The leading pro-tobacco spender, at $44,643, was Altria Client Services, a subsidiary of Altria Group, which includes Philip Morris USA, the nation's largest manufacturer of tobacco products.

This month, Altria spent an as-yet-undisclosed sum with Commonwealth Radio Reports of Louisville, which distributed a 45-second audio report to Kentucky radio stations about tobacco farmers and retailers lobbying legislators against the tax increase. The report did not say who sponsored or produced it.

Richard Farmer, the reporter and company owner, told Kentucky Health News that Altria brings tobacco farmers to Frankfort every session, but this year added retailers. That indicates the stakes are higher; in addition to the foundation's campaign, the state faces serious revenue problems.

The foundation is also using paid media. It has laid out more than $98,500 for an advertising campaign set to begin Monday, Feb. 26, Marcus Green reports for Louisville's WDRB. The foundation is staffing the Coalition for a Smoke-Free Tomorrow, comprising more than 150 groups and individuals.

“It will be a multimedia campaign,” Bonnie Hackbarth, spokeswoman for the foundation and the coalition, told Green. “We will be using billboards, cable TV, digital, and we will be focusing on the health benefits that can be achieved through a $1 or more increase on the tax on cigarettes.”

Hackbarth told Green that the campaign will focus on the health benefits of quitting smoking. Kentucky's smoking rate of 25 percent "trails only neighboring West Virginia," Green notes.

"Hackbarth said the coalition, whose members include health, business and other groups, does not expect that a standalone bill raising the cigarette tax will pass during the current session," Green reports. "But she said it’s possible the measure could be added during budget negotiations or approved in a special session on tax reform. Advocates estimate a $1-per-pack cigarette tax could generate more than $266 million for the state each year while also reducing smoking-related illnesses."

Hackbarth said of the ad buy, “This is the first wave and we will continue until we will be able to win.”

In his report, Farmer said, "Opponents say the tax hike would unfairly burden those least able to pay, the nearly 48 percent of low-income Kentuckians who smoke, and it would hurt the family farm, according to Christian County farmer Robert Gray," who said tobacco prices are stable, unlike those for other farm products.

Altria's allies also argue the hike would be "counterproductive," Farmer reported, because "60 percent of states recently increasing cigarette taxes failed to meet revenue projections. Growers pointed out that higher taxes would drive smokers across borders to buy cigarettes, harming Kentucky convenience stores, which derive more than a third of their sales from cigarettes." Dan Hartlage of Guthrie Mayes Public Relations in Louisville, which works for Altria, was asked the source of that data and what "recently" meant, but didn't provide the information.

Raising the tax $1 a pack would make it $1.60, the same as in Ohio but much higher than the 99.5 cents in Indiana, the other state that shares a major metropolitan area with Kentucky. The rates in other bordering states are $1.98 in Illinois, $1.20 in West Virginia, 62 cents in Tennessee, 30 cents in Virginia and 17 cents in Missouri; the last two are the lowest in the nation.

Foundation President and CEO Ben Chandler said in an email that tobacco manufacturers are “hiding behind farmers,” who “get about 3 cents per pack of cigarettes for their tobacco. Yet the health-related costs are about $35 per pack. And every household in Kentucky pays about $1,200 in extra taxes each year to cover those health costs. We’re grateful that lawmakers are beginning to understand this message, and will keep working until we can announce we’ve kept our promise to make Kentucky healthier by reducing smoking and exposure to secondhand smoke.”

Posted by Al Cross 

Kentucky Health News is an independent news service of the Institute for Rural Journalism and Community Issues, based in the School of Journalism and Media at the University of Kentucky, with support from the Foundation for a Healthy Kentucky.

LAWRENCE CO. HEALTH DEPT. is participating in the program and has run a media campaign on many tobacco concerns.

 

February 19, 2018

Anthem makes several exceptions to its controversial policy of denying payment for ER visits it deems non-emergency

Responding to complaints from legislators and health-care providers, Anthem Blue Cross Blue Shield has added several exceptions to its recently established policy of not paying for emergency-room visits if it determines there was no emergency.

The policy first took effect in Kentucky, Missouri and Georgia; "Ohio, Indiana and New Hampshire were added to the program in January, after the new exceptions were already in place," Leslie Small reports for FierceHealthcare.

The exceptions include patients who:

*  are sent to the ER by another provider, including an ambulance
*  visit an ER between 8 p.m. Saturday and 8 a.m. Monday, or on a major holiday

*  are younger than 15
*  live more than 15 miles from an urgent care center
*  are traveling out of state
*  receive any kind of surgery
*  get intravenous fluids or IV medications, or an MRI or CT scan
*  have an ER visit associated with an outpatient or inpatient admission

"Anthem said the changes went into effect Jan. 1," Shelby Livingston reports for Modern Healthcare. "It will apply the exceptions to any previously denied claims."

The company said in a prepared statement, “Anthem stands by our belief that emergency rooms are an expensive place to receive routine care. The costs of treating non-emergency ailments in the ER has an impact on the cost of healthcare for consumers, employers and the health care system as a whole.”

The changes did not satisfy the American College of Emergency Physicians. "This is still a fundamentally flawed policy,” Laura Wooster, the group's associate executive director of public affairs for the American College of Emergency Physicians, told Small. “Making fixes around the edges doesn’t end this dangerous policy that’s really going to scare patients away from going to the ER or even considering going to the ER.”

Wes Brewer, former president of ACEP's Kentucky chapter, told Lisa Gillespie of Louisville's WFPL, “We have hundreds of cases where people with conditions, where I don’t know in what universe you wouldn’t think they’re emergencies, have been denied.”

Small reports, "Anthem’s program was meant to deter members from using the emergency room for illnesses or injuries that aren’t life-threatening. But critics say patients shouldn’t be forced to self-diagnose, warning that the new policies will encourage people to avoid seeking care for serious medical conditions out of fear that their claim will be denied."

Shannon Muchmore reports for HealthcareDive, "Anthem has said its program denies a small percentage of claims, but the change in policy signals the payer may be worried about the backlash, including from patients who have gone public with denied claims.

Posted by Al Cross at 9:59 AM

Kentucky Health News is an independent news service of the Institute for Rural Journalism and Community Issues, based in the School of Journalism and Media at the University of Kentucky, with support from the Foundation for a Healthy Kentucky.

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