Settlement FAQs

how to get money from tobacco settlement

by Zachary Reilly IV Published 2 years ago Updated 2 years ago
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It is not a fund that an individual can just file a claim to collect money from. If you have smoking related health issues documented in your medical records as being caused by tobacco, then you need to contact a local tobacco product liability attorney and file suit against the company yourself to get a judgment for your healthcare issues.

Full Answer

How much money do States receive from tobacco settlement payments?

However, this is less than 2 cents of every dollar or close to $26 billion total that states receive from tobacco settlement payments and tobacco taxes each and every year.

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 happened to the tobacco Master Settlement Agreement money?

Up In Smoke: What Happened to the Tobacco Master Settlement Agreement Money? In November 1998, forty-six US states, along with the District of Columbia and five US territories, and the major tobacco companies entered into a contract of an extraordinary nature.

How much do States spend on tobacco cessation programs?

In total, states are spending close to $470 million on tobacco prevention and cessation programs in the 2015-2016 fiscal year. However, this is less than 2 cents of every dollar or close to $26 billion total that states receive from tobacco settlement payments and tobacco taxes each and every year.

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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.

Who won the 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.

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.

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.

When was the tobacco lawsuit settled?

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.

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.

Did tobacco companies lie?

In 2006, the US District Court for the District of Columbia ruled that tobacco companies were guilty of breaking civil racketeering laws, marketing to children and minority populations, and lying to the public about the dangers of smoking.

What do you put in a snuff box?

Snuffboxes were used for containing snuff, a mixture of ground tobacco and scented oils, and were very popular in the 18th century when snuff-taking was fashionable. Highly decorated and valuable objects, they became collectors' items in the 19th century. Read more about this object in our search the collection pages.

What did tobacco companies get sued for?

The United States Justice Department has filed a massive civil lawsuit against the country's major tobacco companies, seeking to recover billions of dollars in long term costs related to treating ill smokers covered by the government health programmes.

What effect did the MSA settlement have on tobacco sold in the US?

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.

What did the master settlement agreement do?

It requires the tobacco industry to pay the settling states billions of dollars annually forever, forbids participating cigarette manufacturers from targeting youth, imposes restrictions on advertising and promotional activities, and bans or restricts transit advertising, outdoor advertising, product placement in media ...

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 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.

Do counties have to include the trust fund?

Counties may only include the expenditures made out of the trust fund. It should not include amounts set aside in the trust fund, but may include expenditures made out of the trust fund if they are used for health care services and the county does not receive reimbursement for those services.

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.

Can a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses?

May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses?#N#Yes, the use of the money is unrestricted. The settlement agreement does not require that it be spent for a particular purpose.

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.

How much did tobacco companies pay in compensation?

In 1998, an historic landmark legal settlement between 46 states and the major tobacco companies, – along with individual settlements with four other states – required the companies to pay more than $246 billion over time as compensation for tobacco-related health care costs.

How much does tobacco spend on marketing?

According to the most recent data from the Federal Trade Commission (for 2017), the major cigarette and smokeless tobacco companies spend $9.4 billion a year – over $1 million each hour – on marketing.

How much money will the CDC spend on tobacco in 2020?

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 is the importance of e-cigarettes?

“The e-cigarette epidemic is disrupting the lives of kids and families in every community, so it is critical that every state step up and do its part to end this crisis. That includes properly funding proven tobacco prevention programs, as well as prohibiting the flavored products that have fueled this epidemic,” said Matthew L. Myers, President of the Campaign for Tobacco-Free Kids. “We need a comprehensive, all-hands-on-deck strategy to prevent e-cigarettes from addicting a generation of children.”

How many high schoolers use e-cigarettes?

The number of kids who use e-cigarettes has skyrocketed to over 5.3 million, including more than one in four (27.5%) high school students, and recent trends indicate that nearly 5,000 more kids start using e-cigarettes each day.

Which states have banned flavored e-cigarettes?

Massachusetts has prohibited the sale of all flavored tobacco products, including flavored e-cigarettes and menthol cigarettes, while Michigan has banned flavored e-cigarettes.

When is the deadline for cigarette warnings?

meet a court-ordered deadline of March 15, 2020, for issuing a final rule requiring graphic cigarette warnings.

Why do states need to use tobacco settlement dollars?

The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause of death in this country, tobacco use. Clearly, we have a tall mountain to climb though.

What was the largest settlement in the history of tobacco?

In 1998, almost every state in the U.S. came together to approve the largest civil settlement in U.S. history, the Tobacco Master Settlement Agreement (MSA). This court settlement between 46 states and the District of Columbia and the major tobacco companies forced them to end some of their more egregious marketing practices and provided for annual payments to the states for some of the medical costs of caring for the 16 million Americans who have smoking-caused illnesses. The settlement was huge: $206 billion over the first 25 years and the payments continue indefinitely into the future.*

How many states have failed the Tobacco Control 2016 test?

That's over 80 percent of states that failed the test!

When was the Master Settlement Agreement reached?

ALERT: The Master Settlement Agreement involves a 1998 settlement reached between the nation's four largest tobacco companies and attorneys general from 46 states and territories. Despite recent reports on the internet, there is no provision for payments to individuals.

Does tobacco cause lung cancer?

And their profits come at our expense: Tobacco use causes or makes worse a whole host of diseases and conditions, including lung cancer and chronic obstructive pulmonary disease (COPD). Tobacco also eventually kills over a third of people who use it. In the 1990s, policymakers finally stood up to the industry and acted.

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.

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.

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.

Can smokers sue a CI?

In States that did not sign up to the Master Settlement Agreement, individual smokers (or their surviving families or estates) have successfully sued a ci

Can you settle a tobacco dispute?

You can’t. The Master Settlement Agreement was a deal between the tobacco companies and the states, settling litigation by the states.

How much money did tobacco companies pay to the states?

Nearly twenty years later, the tobacco companies have paid a staggering $119.5 billion to the states and territories participating in the MSA and another $25.4 billion to the four states with their own agreements. What have the states done with this huge amount of money?

What is the Tobacco Master Settlement Agreement?

The Tobacco Master Settlement Agreement simultaneously represents one of the most egregious examples of a government shakedown of private industry and offers a case study of the problems that stem from big government and big business scratching each other’s backs. It has turned the largest tobacco companies into an indispensable cash cow for politicians and bureaucrats, enabled irresponsible state spending, and, amazingly, has resulted in less money for public health and tobacco control while propping up a declining industry. As is the case with discriminatory tobacco taxes, the incentives of the MSA are perverse: the more people smoke, the more money the government gets to spend on whatever it wants. The biggest losers are those with tobacco-related diseases and smokers trying to quit.

What was the master settlement agreement between the tobacco companies and the states?

In November 1998, forty-six US states, along with the District of Columbia and five US territories, and the major tobacco companies entered into a contract of an extraordinary nature. (The other four states, Florida, Minnesota, Mississippi, and Texas, had entered similar agreements on their own beginning the year before.) The agreement, known as the Master Settlement Agreement (MSA), represented the culmination of a decades-long argument between the tobacco companies and state governments. After the dangers of smoking became known, the tobacco industry had engaged in extensive efforts to somehow stay in business, deflect and defeat lawsuits, and minimize negative attention. Public healthcare systems—and most of the healthcare in this country is taxpayer-funded or subsidized—had seen an influx of patients with smoking-related diseases, and state governments began filing lawsuits against the tobacco companies, claiming they wanted money to help cover smoking-related healthcare costs. The tobacco companies had lots of money but were nervous about the states’ potential to sue them out of business. So, they decided to talk. The result was the MSA.

How does the amount paid by tobacco companies affect the number of cigarettes sold?

The amount paid by the tobacco companies would directly correlate to the number of cigarettes sold—the more cigarettes sold, the more money the states would get. In exchange for their money, the tobacco companies would not be sued by state and local governments seeking recovery of costs associated with tobacco use.

What is tobacco bonds?

The state issues bonds backed up by the promise of future payments. The term “tobacco bonds” is a reference to this irresponsible practice. The buyers of bonds (the most prominent of which are powerful financial institutions) make a handsome long-term profit. State governments and their taxpayers get a raw deal.

How do politicians take advantage of the tobacco industry?

Besides politicians’ quintessential habit of spending money on things it was not meant for, there is a more insidious way that they have taken advantage of the never-ending stream of money from the tobacco companies. This is called securitization, and it occurs when a cash-strapped state borrows against promised future MSA payments so that it can get the money immediately. The state issues bonds backed up by the promise of future payments. The term “tobacco bonds” is a reference to this irresponsible practice. The buyers of bonds (the most prominent of which are powerful financial institutions) make a handsome long-term profit. State governments and their taxpayers get a raw deal. As the Campaign for Tobacco-Free Kids warned as early as 2002, states that securitize their tobacco funds get much smaller total payments, “usually for about 40 cents on the dollar or less,” than they would if they let the future revenue come in as planned. Borrowing against future payments in exchange for less money today leads to fewer resources for public health and more money for Wall Street. Yet politicians openly turn to the MSA revenue to cover for their irresponsible spending. For example, in November 2017, as Pennsylvania tried to balance its budget shortfall that had been caused by a refusal to eliminate wasteful spending, securitizing tobacco settlement revenue was the preferred course of all parties. Unfortunately, even some otherwise fiscally responsible politicians like to securitize tobacco revenue, as they consider it a better option than raising taxes.

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.

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.

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.

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General Information

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 settleme…
See more on dshs.texas.gov

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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