Indiana business, health leaders call for state cigarette tax increase

The Alliance for a Healthier Indiana, a group of Indiana’s leading business and health organizations, is calling for a $2 per pack increase in cigarette taxes during the 2021 legislative session with the aim to protect Hoosiers’ health and improve Indiana’s workforce.

“Indiana has the fourth-highest rate of smoking in the U.S.,” said Beth Keyser, president of Anthem Blue Cross and Blue Shield in Indiana. “During this ongoing health crisis, we’ve learned that individuals with smoking-related chronic illnesses face greater risk of serious complications from COVID-19. That’s why it’s important to be a part of this effort to invest in public health, discourage unhealthy behaviors, and make Indiana a healthier place for families and businesses to prosper.”

Indiana’s health metrics are some of the worst in the nation. Indiana’s smoking rate of 19 percent ranks as the 41st worst out of 50 states and costs the state $7.7 billion annually.

“Our cigarette tax is the lowest among our neighbors and ranks 37th among all states,” said Kevin Brinegar, President and CEO of the Indiana Chamber of Commerce. “Raising Indiana’s cigarette tax would reduce smoking and save lives, cut employer health care costs, and replace needed state funds lost due to the pandemic.”

The state’s low health care rankings, including in addiction and chronic disease, stand in stark contrast to its top-rated economic and regulatory environment. Workforce health metrics are a key factor in business relocation decisions, and Indiana’s low ranking hurts economic development efforts.

“Raising the cigarette tax would protect the state’s most vulnerable residents and ensure essential funding for state investments – it’s a win-win that makes our people healthier and our economy stronger,” said Bryan Mills, Chairman of the Alliance for a Healthier Indiana and President and CEO of Community Health Network.

About the Alliance for a Healthier Indiana

The Alliance for a Healthier Indiana is a group of health care professionals, advocates, and community and business leaders from across Indiana who are committed to improving the health of our state. Its founding members include Indiana Hospital Association, Indiana Chamber of Commerce, Indiana State Medical Association, Anthem Blue Cross and Blue Shield in Indiana, and the Indiana University Richard M. Fairbanks School of Public Health. For more information, visit the Alliance for a Healthier Indiana’s website at healthierindiana.org.