The General Assembly passed major legislation Monday to expand health insurance coverage and clean up the Chesapeake Bay ? programs that could cost the state more than $325 million a year by 2013.
The legislation signed into law expands health insurance to as many as 120,000 unprotected adults in the next five years. The plan also includes a $20 million subsidy to small businesses that do not offer employees health coverage.
The health insurance expansion is contingent on voters? approval of a slot machine program on the November 2008 ballot.
“This is the first substantial step we have taken in many, many years to reform our health care program,” said Del. Peter Hammen, chairman of the House?s health and government operations committee.
Previously, single adults had to earn less than $4,000 each year to qualify for Medicaid. The new law extends the benchmark to households with annual incomes up to 116 percent of the federal poverty guidelines, or about $11,800 for a single adult.
The plan will cost $53 million in fiscal year 2009 and grow to $280 million by 2013. Doubling the state?s cigarette tax to $2 per pack will help pay for the initial part of the plan.
“I could support this wonderful bill if it were indeed revenue-neutral,” said Del. Adelaide Eckardt, an Eastern Shore Republican. “I guess I?d rather see the money before we spend it.”
Lawmakers also approved a $50 million-per-year dedicated trust for Chesapeake Bay initiatives, drawing funds from the state?s taxes on car rentals and gasoline. The “Chesapeake Bay 2010 Trust Fund” will be divided among state agencies to help farmers reduce harmful runoff, fund improvements to local stormwater management plans and create urban parks.
