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What Were The Terms Of The Master Settlement Agreement Quizlet

By Zach Arnold | October 15, 2021

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This legal situation changed dramatically in the 1990s, mainly through a loosely coordinated alliance of litigators and attorneys general. To avoid obstacles to successful litigation on behalf of aggrieved persons, they put forward a new legal argument on behalf of the States where smokers lived. Given the rapidly growing cost of smoking-related illnesses, many affected individuals have received Medicaid-funded health care. State taxpayers had not opted for smoking, but were forced to bear these enormous costs. As a result, states would sue the tobacco industry for Medicaid cost recovery due to smoke-related illnesses. Overall, observers of the implementation of the MSA indicated that States have at best a “mixed record” with regard to the use of funds for their original purposes. There is a growing consensus among health decision-makers that “the public missed a golden opportunity to improve their health” when the MSA was enacted.52 An unintended positive consequence has been that, since tobacco companies passed on the costs of the MSA to their customers in the form of higher prices per package, adolescent smoking has declined somewhat.53 The MSA involves a massive financial transfer from cigarette manufacturers to states for the cost of treating smoking-related diseases. and for the funding of educational programmes aimed at reducing smoking among minors (see Table 1 for highlights of the agreement). In addition to MSA funding, four states that agreed with the tobacco industry before the MSA would receive $40 billion over the same 25-year period.4 The MSA also established a national non-profit foundation (the American Legacy Foundation) to support research on effective tobacco programs ($250 million over 10 years) and fund an anti-smoking advertising campaign totaling $1.45 billion on 5 years.11 Finally, A The National Tobacco Grower Settlement Trust would provide $5.15 billion over one year to compensate tobacco quota holders and farmers for expected financial losses caused by an expected decline in cigarette consumption due to the MSA. The Campaign for Tobacco-Free Children found that only five states have spent MSA funds on anti-smoking programs for youth at the 20% to 25% level recommended by the Centers for Disease Control and Prevention (CDC). Three states (Michigan, North Carolina, and Tennessee) have not spent MSA money on tobacco control measures.37 Several states (including New York, California, and Connecticut) have securitized all or part of their MSA revenues and sold their annual MSA payments using government-backed bonds.38 They could then use subsequent bond revenues to reduce current government deficits and/or increase funding in certain areas.35 The practice of securitization was strongly rejected by the tobacco control organization. 39.40 As of fiscal year 2008, only three states (Maine, Delaware, and Colorado) funded tobacco prevention programs at the minimum level recommended by the CDC.41 The tobacco industry`s responsibility for public health problems and compensation for their treatment has increased since the 1960s.

In 1999, attorneys general jointly launched the largest class action lawsuit in U.S. history, suing the tobacco industry to cover the cost of caring for smokers. .

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