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91_SR0048
SRS91SR0004GHge
1 SENATE RESOLUTION
2 WHEREAS, in November 1998, 46 states agreed to a historic
3 settlement with the tobacco industry, which ended a four-year
4 battle with the industry over treatment costs states have
5 incurred for smoking-related illnesses; and
6 WHEREAS, the 46 states could receive up to $196 billion
7 over a 25-year period, including disbursements totaling over
8 $9 billion to the state of Illinois; and
9 WHEREAS, the Master Settlement Agreement does not
10 restrict or earmark the settlement, therefore the general
11 belief is that the funds may be appropriated according to
12 state law; and
13 WHEREAS, the decision for states now is how to best use
14 the money; and
15 WHEREAS, the federal Department of Health and Human
16 Services contends that existing Medicaid law (Section 1903(d)
17 of the Social Security Act) compels it to recover its share
18 of third-party payments, collected by states on behalf of
19 Medicaid clients, and argues further that state tobacco
20 settlement funds are third-party recoveries under the
21 provisions of the Medicaid statute; therefore, be it
22 RESOLVED, BY THE SENATE OF THE NINETY-FIRST GENERAL
23 ASSEMBLY OF THE STATE OF ILLINOIS, That we urge the Congress
24 of the United States and the Clinton Administration to
25 recognize state interests and enact legislation that would
26 prohibit the federal Department of Health and Human Services
27 from recouping the tobacco settlement funds as third-party
28 recoveries under Medicaid law; and be it further
29 RESOLVED, that copies of this resolution be forwarded to
30 each member of the Illinois Congressional Delegation.