Arizona Tax: Smokers, Obese and Diabetics to be Charged

An Arizona tax charging Medicaid patients $50 a year if they smoke, have diabetes or are overweight is being considered.

The fee is intended to reduce health care costs by encouraging patients to adopt a healthy lifestyle according to a spokeswoman for the Arizona Health Care Cost Containment System.

"It engages the consumer to start having a greater awareness of how they fit into the bigger health care puzzle," said Monica Coury, spokeswoman for AHCCCS. "We want to be able to provide health care to people. And we want to stretch our dollars as far as we can. Part of that is engaging people to take better care of themselves."

Some private employers and state governments have already introduced higher insurance premiums for workers who are overweight or smoke, but Arizonas new plan would be the first state-federal health care program to charge low-income residents for unhealthy lifestyles.

The fee would apply to certain childless adults and to diabetic patients who failed to follow doctors orders to lose weight.

Democratic state Sen. Kyrsten Sinema said the tax proposal isn't fair to diabetics.

"This would fine people with medical conditions beyond their own power and control," Sinema said. "I just don't think it's fair to vilify someone with diabetes."

Patients falling into one of the taxed categories would need to work with a primary care physician to develop a plan to begin to reverse their unhealthy condition in order to avoid the annual charge. The plan requires approval by the Legislature, which has been considering $500 million of cuts to Arizona's Medicaid program to help eliminate a state budget deficit of nearly $1.5 billion.A fee for Medicaid patients would also require federal authorization, and federal rules could prevent Arizona from enforcing the fee.Coury says the $50 fee is a way of showing the federal government Arizona is serious about getting their citizens healthy while managing dollars better."Part of that requires that we engage the consumer in active, healthy behaviors."
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