A bill to prohibit the recoupment of Medicaid-related funds recovered from one or more tobacco companies

4 Pages·1999·0.16 MB·English

by  United States. Congress. Senate

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B7aSl0t0imSoerceu.ilMtayrByltvedn.d 21244 II
106TI1CONGRESS 252
1stSession S.
Toproliibittherecoupmentofmedicaid-relatedfundsrecoveredfromone
ormoretobaccocompanies.
IN THE SENATE OF TIIE UNITED STATES
January19,1999
Mr.VOINOVICHintroducedthefollowing:bill;whichwasreadtwiceand
referredtotheCommitteeonFinance
A
BILL
Toprohibittherecoupmentofmedicaid-relatedfunds
recoveredfromoneormoretobaccocompanies. •
1 BeitenactedbytheSenateandHouseofRepresenta-
2 tivesoftheUnitedStatesofAmericainCongressassembled,
3 SECTION1.FINDINGS.
4 Congressmakesthefollowingfindings:
5 (1) A commitment to the responsibility' that
6 GovernorsandotherStateofficialshaveforthewell-
7 being oftheir citizens motivated the decision by 41
8 States, commonwealths and territories to initiate
9 lawsuitsagainstthetobaccoindustr}^thatpredicated
1 the national settlement negotiated by State Attor-
2 neysGeneralinNovemberof1998.
3 (2) Statelitigationagainstthetobaccoindustry
4 is based on the enforcement of State laws and
5 rights, includingconsumerprotectionlaws, antitrust
6 violations, and unjust enrielmient, among others.
7 Lawsuitsaimedatreducingyouthsmoking, securing
8 the public disclosure of tobacco documents, and
9 othergoalsdidnotseekonlytorecoverStatehealth
10 carecosts.
11 (3) Some State claims do not include any
12 health care claims or pro\'isions for the recovery of
13 healthcarecosts.
14 (4) The States' Attorneys General carefully
15 crafted the November, 1998 agreement to reflect
16 onlyStatecosts. Statessoughtinjunctiverelief, civil
17 penalties, disgorgement ofprofits, and other appro-
18 priateremedies.
19 SEC. 2. PROHIBITION ON TREATING ANY FUNDS RECOV-
20 ERED FROM TOBACCO COMPANIES AS AN
21 OVERPAYMENT FOR PURPOSES OF MEDIC-
22 AID.
23 (a) Amendment to Social Security Act.—See-
24 tion 1903(d)(3) of the Social Security Act (42 U.S.C.
25 1396b(d)(3))isamended—
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1 (1)byinserting"(A)"after"(3)"; and
2 (2)byaddingattheendthefollo\\T.ng:
3 "(B) Snbparagi-aph (A) and paragi-aph (2)(B) shall
4 not a})})lyto anyamountrecovered orpaid to a State as
5 part ofthe comprehensive settlementofNovember, 1998
6 between the tobacco industn- and State Attorneys Gen-
7 eral, oraspart ofanyindix^dual settlement orjudgment
8 reached in htigation initiated or pursued by a State
9 against one or more manufacturers oftobacco products,
10 as defined in section 5702(d) of the Internal Revenue
11 Codeof1986.".
—
12 (b) Limitation. ^Amounts recovered or paid to a
13 State aspart ofthecomprehensive settlementofNovem-
14 ber, 1998 betweenthetobacco industr}^and StateAttor-
15 neys General, or as part of any individual settlement or
16 judgment reached in litigation initiated or pursued by a
17 Stateagainstoneormoremanufacturersoftobaccoprod-
18 ucts,asdefinedinsection5702(d)oftheInternalRevenue
19 Code of1986, maynotbeusedbya Statetodrawdown
20 funds under a State medical assistance plan under title
21 XIXofthe Social Security'Act (42 U.S.C. 1396 etseq.).
—
22 (c)Effectr^EDate. Thissectionandtheamend-
23 mentsmadebythissectionshallapplytoamountsrecov-
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1 ered orpaid to a Statepriorto, on, or afterthe date of
2 enactmentoftliisAct.
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