State Employees to Pay More for Smoking

South Carolina state employees who admit to using tobacco will pay a $40 monthly health insurance surcharge beginning in 2011, after the Budget and Control Board voted 3-2 Thursday to adopt a recommendation from the state insurance division.

The board previously approved a $25 monthly surcharge that will take effect in 2010. The amended policy will raise that fee to $40 for single smokers and $60 for family coverage beginning in 2011. State officials claim the fee will prevent the state from raising rates on all employees to cover the cost of tobacco-related illnesses.

State employees are required to certify whether they have been tobacco-free during the previous six months, and anyone who admits to usage is charged the additional fee. State Treasurer Converse Chellis argued the state should modify its tobacco usage definition to exempt infrequent users such as those who smoke a cigar on special occasions. Other board members objected on the grounds this would blur the definition of the policy and make enforcement difficult. State employees who fail to disclose tobacco usage can be penalized under the current policy.

State Employee Health Insurance Tobacco Surcharge

• South Carolina: $25 per month, increasing to $40 for individuals and $60 for families in 2011
• Georgia: $40 per month
• Alabama: $25 per month
• Tennessee: $50 per month beginning in 2011

Governor Mark Sanford, Comptroller General Richard Eckstrom and Chellis voted in favor of adopting the fee. Senate Finance Committee Chairman Hugh Leatherman and House Ways and Means Committee Chairman Dan Cooper voted against.

The board delayed making a decision on imposing a likely 4 percent across-the-board cut to state agencies until next month. A Board of Economic Advisors forecast shows state revenue projections declined an additional $200 million since the board's previous meeting, which under state law requires the board to reduce spending.

In a 3-2 vote, the board voted to wait until new figures are released next month to see if revenue projections improve and then meet again to take action on spending reductions.

Nothing in the foregoing should be construed as an attempt to aid or hinder passage of any legislation. Copyright 2009. South Carolina Policy Council Education Foundation, 1323 Pendleton Street, Columbia, South Carolina 29201. Visit the Policy Council Facebook page at www.facebook.com/scpolicycouncil or Twitter at www.twitter.com/scpolicycouncil.