Settlement FAQs

how to claim tobacco settlement payments

by Thelma Ward Published 3 years ago Updated 2 years ago
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How are tobacco companies obligated to pay the settling states?

Under the MSA, tobacco manufacturers are obligated to make annual payments to the Settling States in perpetuity, so long as cigarettes are sold in the United States by companies that have settled with the States. The NAAG Center for Tobacco and Public Health makes certain such payments are made.

What is the tobacco settlement permanent trust account (TSPA)?

The 76th Texas Legislature created the Tobacco Settlement Permanent Trust Account as a cooperative project between the Texas Department of Health (now DSHS) and the State Comptroller of Public Accounts in order to provide local health departments and hospital districts a portion of the payments from the state's tobacco settlement.

What are Big Tobacco’s “Master Settlement payments?

You could begin collecting $2,300 a month thanks to “Master Settlement Payments,” courtesy of Big Tobacco. This twist has enormous implications for retirees, future retirees, and anyone searching for more income. Because of the Master Settlement Agreement, Big Tobacco must distribute cash to 46 states and five U.S. territories forever.

Does big tobacco have to pay to settle a deceptive advertising case?

Unfortunately, there’s no merit to claims that big tobacco must pay individuals thousands of dollars per month to settle a deceptive advertising case from the 1990s — no payments are made directly to individuals under the settlement. The rumor started with a solicitation appearing at the investment website MoneyMorning.com.

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Where did the tobacco settlement money go?

This year (fiscal year 2020), the states will collect $27.2 billion from the 1998 tobacco settlement and tobacco taxes. But they will spend less than 3% – just $739.7 million – on programs to prevent kids from using tobacco and help smokers quit - less than a quarter (22.4%) of the total funding recommended by the CDC.

What are tobacco settlement payments?

Under the Master Settlement Agreement, seven tobacco companies agreed to change the way they market tobacco products and to pay the states an estimated $206 billion.

What was the result of the 1998 tobacco settlement?

In the largest civil litigation settlement in U.S. history, the states and territories scored a victory that resulted in the tobacco companies paying the states and territories billions of dollars in yearly installments.

What did the master settlement agreement that cigarette companies agreed to in 1998 do?

In 1998, 52 state and territory attorneys general signed the Master Settlement Agreement (MSA) with the four largest tobacco companies in the U.S. to settle dozens of state lawsuits brought to recover billions of dollars in health care costs associated with treating smoking-related illnesses.

Can I sue tobacco companies for COPD?

Yes, you can still sue tobacco companies in certain cases. You may be able to bring an action as an individual or, in some cases, as a representative of a class in a class action.

How long did tobacco litigation last?

In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country.

What year was tobacco settlement?

1998The tobacco Master Settlement Agreement (MSA) is an accord reached in November 1998 between the state Attorneys General of 46 states, five U.S. territories, the District of Columbia and the four largest cigarette manufacturers in the United States.

When did the Big Tobacco lawsuit start?

The first big win for plaintiffs in a tobacco lawsuit occurred in February 2000, when a California jury ordered Philip Morris to pay $51.5 million to a California smoker with inoperable lung cancer. Around this time, more than 40 states sued the tobacco companies under state consumer protection and antitrust laws.

What was the Big Tobacco lawsuit?

In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.

What price did the tobacco companies have to pay for hiding the truth from consumers?

So far tobacco companies have paid more than $100 billion to state governments as part of the 25-year, $246 billion settlement. Among many state governments receiving money, Orange County, Calif., is an outlier.

What is MSA reporting for tobacco?

MSA Multicat Mandatory Data Multicat reports are weekly reports filed electronically by tobacco, candy, drinks, and grocery distributors to report sales and inventory floor counts to brand manufacturers as part of participating in their trade programs.

What is Macookies settlement?

The $18.4 million settlement will cover attorneys' fees and other expenses, and class members are eligible to receive a payment of up to $100, based on the number of claims filed. Author: Steve Alder has many years of experience as a journalist, and comes from a background in market research.

What was the Big Tobacco lawsuit?

In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.

What is MSA reporting for tobacco?

MSA Multicat Mandatory Data Multicat reports are weekly reports filed electronically by tobacco, candy, drinks, and grocery distributors to report sales and inventory floor counts to brand manufacturers as part of participating in their trade programs.

What is a non-hospital district hospital?

For non-hospital district public hospitals owned, sold, or leased by a political subdivision, they are defined as “the total unreimbursed amount of political subdivision funds paid to such public hospital by any political subdivision during that year.”.

What expenses are included in a deputy sheriff's salary?

Expenditures for services such as transportation of inmates to doctor appointments can be included. The relevant portion of the salary and benefits of a deputy sheriff who transports inmates to doctor appointments can also be included. Also any medications, dental appointments, nursing time, etc., are eligible.

What are the services that are not counted in the septic system?

Health care education, outreach, screening, laboratory services, counseling, and case management may be counted. However, environmental services such as mosquito control, water testing, and septic tank inspection may not be counted.

What is a hospital district in Texas?

These include “a hospital district, another local political subdivision owning or maintaining a public hospital, or a county of the State of Texas responsible for providing indigent care to the general public.”.

Is tobacco settlement based on pro rata?

Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health care expenditures, as defined in the settlement agreement and health care expenditures made with tobacco settlement proceeds are treated as unreimbursed. See #12.

Is jail health care claimable?

Only jail health care expenditures out of the county’s budget are claimable. A county not wholly located within a hospital district may report the county’s unreimbursed expenditures for jail health care services on the county expenditure statement. Last updated October 4, 2018.

Can a foundation give money to a county?

However, if the foundation gave the money to the county as a general donation, giving the county clear authority to use the money at the county’s discretion, and the county used the money on health care, then the county could count the use of such funds as an unreimbursed health care expenditure.

How long does it take to file a claim against a tobacco company?

You file a claim against the tobacco Co. If they don't answer or respond within 30 days, it becomes law.

Why do people quit smoking?

And they’ve done it without “hitting bottom” through jail, horrible accidents, killing people in fights, overdosing, extreme medical consequences, or waking up in the gutter — usually quitting just because of social pressure, relatively mild financial expenditure (at least when compared to most illegal drugs), or concerns about far future possibilities of health consequences.

Where does MSA money go?

In most States (49 of them in fact) the MSA funds go directly to the State, and are used for whatever purpose they wish. In theory the money is for treating ill smokers and funding local tobacco control - but as often as not it goes into whatever they have a current financial problem with, such as funding the State employee pensions. Indeed, the impression is that less than 2% of the MSA funds, overall, are assigned to their original purpose.

Where do the tobacco protection funds go?

The payments go directly from smokers’ pockets to the State treasuries after being “laundered” through the tobacco companies that were basically forced to pay “protection money” to the Mob or face the consequences. I’m pretty sure there are no provisions for individual citizens to touch the funds in any State, though I’d be interested in knowing about it if I’m wrong.

When did Michigan sign the MSA?

Michigan signed the MSA in 1998 so I don’t see any way in which a resident can claim.

Is Michigan a signatory to the tobacco master settlement?

It is impossible for individuals to obtain any of the funds paid by the tobacco companies. In addition, Michigan was a signatory to the MSA in 1998. As a result, it provides a huge barrier agains suit by individuals against Big Tobacco. Florida was not a signatory and as a result most cases against Big Tobacco wer...

Can smokers sue a cigarette manufacturer?

In States that did not sign up to the Master Settlement Agreement, individual smokers (or their surviving families or estates) have successfully sued a cigarette manufacturer, sometimes as individuals and sometimes in a class action. Recent cases include Florida’s Robinson/RJR case, which resolved to a $17m award. Florida has several cases outstanding, more on that here: Tobacco giants settle smoking lawsuits for $100M. Some of these cases can be found by searching ‘tallahassee tobacco suit’ and similar.

What is a prohibition on advertising?

Prohibits the participating manufacturers from engaging in advertising, marketing, and promotional activities that target minors.

How many sponsorships can you have in a year?

Limits manufacturers to only one brand-name sponsorship of an event per year, and prohibits brand name sponsorship of major team sports (baseball, basketball, football, hockey, and soccer), concerts, events with a significant youth audience, and events where any of the paid participants or contestants are underage.

What is a ban on apparel?

Bans the distribution and sale of apparel and merchandise with brand-name logos ( caps, T-shirts, etc.).

When did the Master Settlement Agreement come into effect?

In November 1998, the attorneys general of 51 U.S. states and territories entered into a landmark settlement as a result of this litigation. Among many other things, and subject to certain exceptions, the Master Settlement Agreement:

Who enforces the Master Settlement Agreement?

The Attorney General’s Office and the attorneys general of other states are taking steps to enforce the terms of the Master Settlement Agreement and to encourage other tobacco companies to join in the settlement.

What is the Master Settlement Agreement?

The Master Settlement Agreement (MSA) is an accord reached in November 1998 between the state Attorneys General of 46 states, five U.S. territories, the District of Columbia and the five largest tobacco companies in America concerning the advertising, marketing and promotion of tobacco products. In addition to requiring the tobacco industry to pay the settling states approximately $10 billion annually for the indefinite future, the MSA also set standards for, and imposed restrictions on, the sale and marketing of cigarettes by participating cigarette manufacturers.

How much money could you collect from Big Tobacco?

Could You Collect Tax-Free Cash Thanks to Big Tobacco? You could begin collecting $2,300 a month thanks to “Master Settlement Payments,” courtesy of Big Tobacco.

Does MSA require settlement payments?

The MSA imposes no requirements on how states spend their MSA payments; states are free to use the funds for any purpose. As a result, the receipt of millions of MSA dollars has presented states with a unique opportunity to finance programs in a variety of policy areas. Although the MSA does not require states to spend settlement payments on tobacco control programs, many antismoking and health care observers are concerned that states are not using enough of the MSA payments to enhance their tobacco prevention and control efforts.

What is the NAAG Center for Tobacco and Public Health?

The NAAG Center for Tobacco and Public Health works with the Settling States of the MSA to preserve and enforce the MSA’s monetary and public-health mandates, including: Representing, advising, and supporting the Settling States in MSA-related legal matters , including litigation and arbitrations.

How does MSA work?

The MSA’s purpose is to reduce smoking in the U.S., especially in youth, which is achieved through: 1 Raising the cost of cigarettes by imposing payment obligations on the tobacco companies party to the MSA. 2 Restricting tobacco advertising, marketing, and promotions, including:#N#Prohibiting tobacco companies from taking any action to target youth in the advertising, promotion or marketing of tobacco products.#N#Banning the use of cartoons in advertising, promotions, packaging, or labeling of tobacco products.#N#Prohibiting tobacco companies from distributing merchandise bearing the brand name of tobacco products.#N#Banning payments to promote tobacco products in media, such as movies, televisions shows, theater, music, and video games.#N#Prohibiting tobacco brand name sponsorship of events with a significant youth audience or team sports. 3 Eliminating tobacco company practices that obscure tobacco’s health risks. 4 Providing money for the Settling States that states may choose to use to fund smoking prevention programs. 5 Establishing and funding the Truth Initiative, an organization “dedicated to achieving a culture where all youth and young adults reject tobacco.”

What law gave the FDA the power to regulate tobacco products?

In 2009, the Family Smoking Prevention and Tobacco Control Act gave the FDA the power to regulate tobacco products. State attorneys general have been active participants in helping the FDA shape its regulatory authority.

How does the MSA affect smoking?

The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019 , U.S. cigarette consumption dropped by more than 50%. During that same time period, regular smoking by high schoolers dropped from its near peak of 36.4% in 1997 to a low 6.0% in 2019. As advocates for the public interest, state attorneys general are actively and successfully continuing to enforce the provisions of the MSA to reduce tobacco use and protect consumers.

What is the prohibition on tobacco companies?

Prohibiting tobacco companies from taking any action to target youth in the advertising, promotion or marketing of tobacco products.

What is the purpose of the MSA?

The MSA’s purpose is to reduce smoking in the U.S., especially in youth , which is achieved through: Raising the cost of cigarettes by imposing payment obligations on the tobacco companies party to the MSA.

How many tobacco companies have settled under the MSA?

Eventually, more than 45 tobacco companies settled with the Settling States under the MSA. Although Florida, Minnesota, Mississippi, and Texas are not signatories to the MSA, they have their own individual tobacco settlements, which occurred prior to the MSA.

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General Information

  1. Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
  2. How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pert…
  1. Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
  2. How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pertaining to the C...
  3. How can I get a copy of the settlement agreement? A text copy of the settlement agreement is available online or may be requested via e-mail at [email protected] telephone at 512.776.2591.
  4. What was the total settlement amount, initially, for political subdivisions? The settlement agr…

Distribution Calculation

  • Once the DSHS receives the expenditure statements, how will it apportion the available dollars among the political subdivisions? The DSHS combines eligible expenditures from all statements received...
See more on dshs.texas.gov

Use of Tobacco Settlement Proceeds

  1. May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
  2. What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
  1. May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
  2. What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
  3. Is there any incentive for political subdivisions to spend their tobacco settlement proceeds on health care? Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health ca...

General Information Regarding Counties

  1. Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
  2. More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. T…
  1. Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
  2. More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. They will ty...
  3. May a county include expendable medical supplies such as bandages, medications, and syringes? Yes, medical supplies may be included, but administrative supplies, such as copy paper, can be counted...
  4. Are expenditures related to medical waste disposal, including the destruction of drugs and n…

County Jail, Sheriff, & Prisoner Information

  1. May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
  2. If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
  1. May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
  2. If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
  3. May a county include drug testing for the sheriff’s department personnel? No, the expense must be related to health care for the general public or the inmates of the county jail.
  4. Can the expense of mental competency hearings or mental health commitments in the court system be included as a possible expense? No, court costs and deputy sheriff’s time spent transporting a pris...

Hospital District & County Information

  1. If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
  2. If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hos…
  1. If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
  2. If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hospital dist...
  3. What expenditures may be claimed by a political subdivision that has sold its public hospital to a private company? Note the following provision in 25 Tex. Admin. Code § 102.3(e)for the distributio...
  4. Who submits an expenditure statement when a new hospital district comes into existence in …

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