00 SENATE JOINT RESOLUTION NO. 7                                                                                         
01 Relating to prohibiting federal claims against funds obtained by settlement of                                          
02 tobacco litigation.                                                                                                     
03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                              
04  WHEREAS, in November 1998, 46 states agreed to a historic settlement with the                                        
05 tobacco industry ending a four-year battle with the industry over treatment costs states have                           
06 incurred for smoking-related illnesses; and                                                                             
07  WHEREAS the 46 states could receive up to $196,000,000,000 over a 25-year period;                                    
08 and                                                                                                                     
09  WHEREAS, because the Master Settlement Agreement does not restrict or earmark                                        
10 use of the money that will be received under the settlement, the general belief is that the funds                       
11 may be appropriated according to state law; and                                                                         
12  WHEREAS the decision for states now is how to best use the money; and                                                
13  WHEREAS the federal Department of Health and Human Services contends that                                            
14 existing Medicaid law (Sec. 1903(d), Social Security Act) compels it to recover its share of                            
01 third-party payments collected by states on behalf of Medicaid clients and argues that state                            
02 tobacco settlement funds are third-party recoveries under the provisions of the Medicaid                                
03 statute;                                                                                                                
04  BE IT RESOLVED that the Alaska State Legislature respectfully requests the                                           
05 Congress of the United States and the Clinton Administration to recognize state interests and                           
06 enact legislation that would prohibit the federal Department of Health and Human Services                               
07 from recouping the tobacco settlement funds as third-party recoveries under Medicaid law.                               
08  COPIES of this resolution shall be sent to the Honorable Ted Stevens and the                                         
09 Honorable Frank Murkowski, U.S. Senators, and the Honorable Don Young, U.S.                                             
10 Representative, members of the Alaska delegation in Congress.