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PA Recoups Tobacco Money in Court Ruling

A Philadelphia court has restored $120 million of Pennsylvania’s share of the annual proceeds from the master settlement that tobacco manufacturers entered into with state governments in 1998.
Last year, an arbitration panel ruled that Pennsylvania had failed to enforce selected tax collection requirements properly and reduced the state’s share of the settlement proceeds by $180 million.  The state appealed the ruling, and last week the court restored $120 million of the $180 million reduction mandated by the arbitration panel.
Pennsylvania uses the proceeds of the tobacco settlement for a number of purposes, including to make Tobacco Uncompensated Care Fund payments to hospitals that serve especially large numbers of uninsured patients and to underwrite clinical, health services, and biomedical research under the state’s Commonwealth Universal Research Enhancement Program (CURE).
Tobacco Uncompensated Care Fund payments are a vital source of support for many Pennsylvania safety-net hospitals.
Learn more about the tobacco funding issue, the court’s ruling, and the implications of that ruling in this Allentown Morning Call article.
 

2014-04-15T06:00:29+00:00April 15th, 2014|Medicaid supplemental payments|Comments Off on PA Recoups Tobacco Money in Court Ruling

State Seeks Restoration of Tobacco Money

Pennsylvania has gone to court to seek the restoration of more than $200 million in tobacco funds that it lost as a result of an arbitration ruling last year.
The money, from the national master tobacco settlement agreement, is used to make Tobacco Uncompensated Care Fund payments that are vital to the state’s safety-net hospitals.  The purpose of the tobacco money is to help underwrite the cost of uncompensated care provided by hospitals that serve especially large numbers of uninsured patients.
Last year an arbitration panel ruled that the state had failed to collect the tobacco taxes owed to it as part of the national tobacco settlement agreement.  In its suit attempting to overturn the arbitration decision, the state maintains that the state has, in fact, collected the taxes in a manner consistent with the settlement agreement and that the tobacco companies have significant overstated how much loose tobacco they sell in Pennsylvania.
Read more about the arbitration ruling that cost Pennsylvania more than $200 million in tobacco funds and the state’s efforts to overturn that ruling in this Philadelphia Inquirer article.

2014-03-10T06:00:24+00:00March 10th, 2014|Uncategorized|Comments Off on State Seeks Restoration of Tobacco Money
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