Governor Proposes Healthcare Cuts, Cigarette Tax

By Chris Bentley in News on Apr 20, 2012 3:40PM

Gov. Pat Quinn broached some difficult topics in Springfield Thursday, including cuts to health-care eligibility that could affect more than 215,000 poor Illinoisans. Quinn also proposed a $1 per pack cigarette tax to help close the state’s $2.7 billion Medicaid budget gap.

The tough proposals did not go over well with either party. Republicans blasted the Governor for raising taxes, while Democrats decried his proposed cuts.

Quinn’s Medicaid cuts would decrease state pay to hospitals, clinics and other providers by $675 million. That includes dismantling ex-Gov. Rod Blagojevich’s Illinois Cares Rx program and raising eligibility standards for the Family Care program.

“If we don’t do this,” Quinn said, “the whole system will collapse.”

But his cigarette tax came under heavier fire from lawmakers. Quinn said raising the 98-cents-a-pack cigarette tax by $1 could generate $337 million in state revenue. Senate President John Cullerton and House Speaker Michael Madigan both threw their support behind the proposal, but they may be paddling upstream. The state Senate passed cigarette tax increases in 2010 and last year, but legislation stalled both times in the House.