Health advocates who have campaigned for a cigarette tax hike hoped the money would benefit Medicaid programs serving low-income residents.

Some were upset Wednesday when Gov. Mark Sanford proposed that the tax money go for personal and business tax cuts.

“How disappointing,” said Sue Berkowitz, director of the S.C. Appleseed Legal Justice Center.

“I would love for him to talk to real South Carolinians, maybe one of the 850,000 who are without health insurance.”

Teresa Arnold, legislative director for the South Carolina AARP, said the state has high insurance premiums, high rates of disease such as stroke and diabetes, and relatively low taxes.

“In light of these facts, why would we use these cigarette tax revenues to lower income taxes, when we could use them to expand health care coverage for the working uninsured?” Arnold said.

In 2002, a coalition of health advocates led by three of the state’s largest hospital systems — including Columbia-based Palmetto Health — commissioned a poll to gauge support for a cigarette tax hike. The poll found almost 76 percent of S.C. voters favored a higher cigarette tax if the funds would benefit Medicaid.

“Of course people want to deter smoking, especially in kids, but there’s even more support for dedicating the money to help Medicaid,” said Judy Cotchett Smith, Palmetto Health spokeswoman.

Matching federal funds would multiply the benefits for needy S.C. residents, Smith added.

Berkowitz said the state’s uninsured include 102,000 children. “Seventy thousand of them could be insured if we just had $19 million to $25 million” to expand eligibility for Medicaid, she said.

There’s a logical link between making cigarettes more expensive and making health care more available, Berkowitz said.

“Smoking increases health care costs for all, including costs for the Medicaid program,” she said.

Looking on the bright side was Patti Smoake, spokeswoman for the S.C. Hospital Association.

Her group supports a cigarette tax increase and believes “any money raised from that should go for health care needs in South Carolina, because there are so many,” Smoake said.

However, she expressed hope there still could be discussion with Sanford about using the money for health programs.

“We’re certainly glad to see that a cigarette tax is on his radar screen. We would like the opportunity to talk with him and the Legislature about how best to use that money.”

Reach Lamb at (803) 771-8454.

CIGARETTE TAXES

South Carolina could more than double its 7-cents per pack tax on cigarettes and still have the lowest rate in the nation. The national average is $1.

Here is a look at how other states’ taxes stack up.

In the Southeast:

Lowest of 50 states and District of Columbia:

Virginia 30cents Kentucky 30cents

Tennessee 20cents Mississippi 18cents Missouri 17cents S. Carolina 7cents The highest:

New Jersey $2.575 Rhode Island $2.46 Washington $2.025 Maine $2.00 Michigan $2.00

SOURCE: Campaign for Tobacco-Free kids