Obama signs law expanding children’s health insurance program

Wed, February 04, 2009 - 5:26 PM

Feb. 4, 2009 -- President Barack Obama just signed legislation to more than double the federal cigarette tax to fund an expansion of health insurance for poor children.

Tobacco companies hurt by declining smoking rates expect the 62-cent increase -- to $1.01 per pack -- to further reduce sales after it takes effect April 1.

The major tax increase on cigarettes, smokeless tobacco, cigars and other tobacco products will fund a $32.8 billion expansion of the State Children's Health Insurance Program, providing coverage to an additional 4 million children under the program.

"In a decent society, there are certain obligations that are not subject to tradeoffs or negotiation. Health care for our children is one of those obligations," Obama said at the signing ceremony at the White House.
--Sean Mussenden