COLUMBIA - A Senate panel heard support Tuesday for a plan to increase cigarette taxes to cover the state's Medicaid budget problems but no support for a plan that uses a different approach.

A Senate Finance subcommittee began weighing the financial aspects of a bill the House approved two weeks ago that restructures health care agencies.

That bill also calls for dealing with Medicaid budget troubles by redeeming part of the state's tobacco lawsuit settlement bonds, which supporters say would yield more money for health programs.

While in consideration in the House, the bond plan was criticized by state Treasurer Grady Patterson as too risky. That continued Tuesday. "It's a lot of work, but you wouldn't get anything out of it," Patterson said.

Senate Finance Chairman Hugh Leatherman, R-Florence, says he won't support the bond restructuring plan.

The Senate subcommittee heard support for Gov. Mark Sanford's plan, which would raise the cigarette tax but lower income taxes. That plan would generate $150 million for Medicaid through a 53-cent-a-pack increase. The state's current 7-cent-a-pack cigarette tax is the third-lowest in the nation, said Revenue Department Director Burnie Maybank.

The subcommittee took no action on the bill, but Leatherman wants to finish Medicaid restructuring and funding work within a week.