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PAG LIN
1 1 SENATE CONCURRENT RESOLUTION NO. _____
1 2 BY IVERSON, GRONSTAL, and KRAMER
1 3 A Concurrent Resolution requesting the United
1 4 States Congress to prevent the federal govern-
1 5 ment from attempting to recoup Medicaid payments
1 6 from the state tobacco litigation settlement
1 7 agreement moneys, and to allow the states to
1 8 keep all settlement moneys, without offset.
1 9 WHEREAS, more than 40 states, including Iowa,
1 10 commenced litigation against tobacco manufacturers
1 11 asserting various claims for monetary, equitable, and
1 12 injunctive relief; and
1 13 WHEREAS, on November 23, 1998, 46 states, Puerto
1 14 Rico, the United States Virgin Islands, Guam, the
1 15 Northern Mariana Islands, and the District of Columbia
1 16 signed a settlement agreement relating to both pending
1 17 and potential litigation by the states against five
1 18 major tobacco manufacturers; and
1 19 WHEREAS, the state of Iowa was one of the states
1 20 that signed the settlement agreement; and
1 21 WHEREAS, the United States Department of Health and
1 22 Human Services has stated an opinion in testimony
1 23 before the United States Congress that the Health Care
1 24 Financing Administration is entitled to recoup funds
1 25 paid to the states as a result of the settlement
1 26 agreement, on the theory, in part, that the settlement
1 27 constitutes reimbursement for Medicaid payments made
1 28 due to tobacco-related illnesses, and that the federal
1 29 government has contributed money toward these Medicaid
1 30 expenditures; and
2 1 WHEREAS, the states that commenced litigation
2 2 sought to obtain relief based on differing theories in
2 3 each state, including claims based in equity, and
2 4 claims seeking damages under state laws, including
2 5 consumer protection and antitrust laws, in order to
2 6 further state policies regarding public health,
2 7 including policies adopted to achieve a significant
2 8 reduction in smoking by youth; and
2 9 WHEREAS, recovery of prior Medicaid expenditures
2 10 was therefore only one theory among many advanced by
2 11 certain states seeking recovery from tobacco
2 12 companies; and
2 13 WHEREAS, in the Iowa lawsuit, the common law claims
2 14 for relief seeking recovery of state Medicaid
2 15 expenditures arising from tobacco-related illnesses
2 16 had previously been dismissed from the state's
2 17 lawsuit; and
2 18 WHEREAS, the settlement contained no admission of
2 19 liability or allocation of settlement of proceeds
2 20 based on any particular theory used by any state, nor
2 21 any mention of Medicaid or federal recoupment of any
2 22 settlement moneys; and
2 23 WHEREAS, these state lawsuits commenced, proceeded,
2 24 and concluded without the assistance, participation,
2 25 or intervention of any branch, department, agency, or
2 26 division of the federal government; and
2 27 WHEREAS, the states assumed all risks and costs
2 28 associated with litigation of these suits; and
2 29 WHEREAS, the President and the United States
2 30 Department of Justice have recently announced that the
3 1 federal government would be filing their own lawsuit
3 2 against the tobacco industry to recover money spent by
3 3 the government on tobacco-related illnesses; NOW
3 4 THEREFORE,
3 5 BE IT RESOLVED BY THE SENATE, WITH THE HOUSE OF
3 6 REPRESENTATIVES CONCURRING, That the United States
3 7 Congress take all necessary actions in order to
3 8 prevent and resist any branch, department, agency, or
3 9 division of the federal government from seeking to
3 10 recoup any Medicaid funds related to the state tobacco
3 11 litigation settlement, or otherwise to claim any right
3 12 to any portion of the funds paid to any state as a
3 13 result of the state tobacco litigation settlement
3 14 agreement; and
3 15 BE IT FURTHER RESOLVED, That the United States
3 16 Congress take all measures necessary to allow the
3 17 states to keep all moneys paid to the states, without
3 18 offset, under the provisions of the state tobacco
3 19 litigation settlement agreement; and
3 20 BE IT FURTHER RESOLVED, That the United States
3 21 Congress should support HR 351 and S 346, which would
3 22 prohibit federal recoupment efforts; and
3 23 BE IT FURTHER RESOLVED, That a copy of this
3 24 resolution be sent by the Secretary of the Senate to
3 25 the President of the United States; the Secretary of
3 26 Health and Human Services, United States Department of
3 27 Health and Human Services; the Administrator of the
3 28 Health Care Financing Administration within the
3 29 Department of Health and Human Services; the President
3 30 of the Senate of the United States; the Speaker of the
4 1 House of Representatives of the United States; members
4 2 of Iowa's congressional delegation; the Governor of
4 3 Iowa; and the Attorney General of Iowa; and
4 4 BE IT FURTHER RESOLVED, That a copy of this
4 5 resolution be delivered to the National Conference of
4 6 State Legislatures for distribution to its members.
4 7 LSB 2149XS 78
4 8 jj/cf/24.1
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