In Arizona, 25.5% of residents were obese as of 2009, according to figures from the federal Centers for Disease Control and Prevention, ranking it about in the middle among states. About 46% of Arizona's Medicaid enrollees smoke daily, according to a 2006 survey by the state's Medicaid agency.
My only question, do they think a $50 surcharge is big enough to change behavior?
I think its also an attempt to shore up revenue not just change behavior, and for a Medicaid enrollee 50 bucks is probably a lot of money.
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