Oklahoma lawmakers move forward on cigarette tax increase

OKLAHOMA CITY (AP) — The Oklahoma Legislature will consider a proposal to increase cigarette taxes by $1.50 per pack in an effort to stave off some of the deepest proposed cuts to Medicare reimbursement rates.

The proposal cleared committees Tuesday in the state House and Senate, paving the way for its consideration on the floor of each chamber. The proposal is estimated to increase revenues by $158 million next year as lawmakers move to close a $1.3 billion shortfall in next year's budget.

The revenue from new cigarette taxes would help lessen cuts to Medicaid reimbursement rates.

Lawmakers who support the bill have warned that falling reimbursement rates could result in the closing of some Oklahoma health-care facilities, including nursing homes. Those who oppose it have said the tax disproportionately affects poor Oklahomans.