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Thursday, January 22, 2009

Increased cigarette tax may help save Virginia hospital and healthcare jobs


Deep cuts to the state’s Medicaid system of healthcare for the poor could lead to layoffs at nursing home and hospital facilities throughout Virginia. Gov. Tim Kaine proposed doubling the cigarette tax to 60 cents per pack, which would raise another $148 million for Medicaid. The hospital association predicts that without the additional money, 11,314 jobs may be lost. Even with the tax increase, job cuts could still occur given the low rate of Medicaid reimbursement.

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