THE Commonwealth Healthcare Corp. is requesting the Senate to amend House Bill 23-41 so it can provide CHCC with “greater flexibility” in spending its share of the funds from the proposed imported betel nut and lime excise tax.
In her written comment to Senate President Edith Deleon Guerrero, CHCC Chief Executive Officer Esther L. Muna, PhD, MHA, FACHE, said the intent of H.B. 23-41 is commendable.
It is also crucial, she said, that the revenue generated from betel nut importation is used effectively to combat the health challenges posed by betel nut consumption in the Commonwealth.
Authored by Rep. Marissa Flores, H.B. 23-41, which passed the House earlier this month, is now with the Senate Fiscal Affairs Committee. The bill proposes to impose a $5 excise tax on each pound of imported betel nut, and a 10-cent excise tax on every ounce of imported lime mix.
The bill would appropriate 50% of the tax collections to the Health Network Program or medical referrals, specifically for oral cancer patients’ stipends; and 10% to the Customs and Biosecurity Division for its operations.
In her comment, Muna said “it is fitting” that a portion of the tax revenue will be allocated to CHCC for treatment of oral cancer patients. However, she said, “it is essential to grant CHCC greater flexibility in how these funds are utilized.”
She said oral cancer treatment, which can be a considerable financial burden, should be a priority.
She said given the “extreme funding shortfall” for medical referrals, CHCC needs to be allowed to use imported betel nut tax revenue to fund essential treatment when other funding may not be available, rather than allowing CHCC to exclusively use the funds for stipends alone.
Muna said based on the analysis included in a House committee report, 50% of imported betelnut excise tax for oral cancer patient stipends would generate more than $500,000 each year.
This figure “may well exceed that amount needed for oral cancer patients’ stipends in a given year, leaving sorely needed funds bound up by legislative restrictions, and risking lack of funding for essentials such as transport and treatment,” she added.
Muna said by allowing CHCC to distribute the funds where they are most needed, be it for oral cancer treatment, patient transportation or stipends, “we can ensure a more strategic approach to tackling the [Health Network Program’s] financing issues.”
Esther Muna
