ASSEMBLY, No. 213

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman WEINBERG

An Act providing for Medicaid cost recoveries from cigarette manufacturers and supplementing P.L.1968, c.413 (C.30:4D-1 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. a. The Attorney General is authorized to bring an action on behalf of the Division of Medical Assistance and Health Services in the Department of Human Services against a liable third party which is a manufacturer of cigarettes to recover the full amount of medical assistance provided pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) which the division has paid or become obligated to pay for health care services related to an illness or injury which can be caused by the smoking of that manufacturer's cigarettes, as well as all reasonable expenses incurred in connection with bringing the action.

    b. In pursuing an action under this act, the division is automatically subrogated to any rights that a Medicaid recipient or his legal representative has to a third party benefit for the full amount of medical assistance provided by the division.

    c. The division has a cause of action against a liable third party manufacturer of cigarettes to recover the full amount of medical assistance provided by the division, which cause of action is independent of any of the Medicaid recipient's rights or causes of action.

    d. In an action brought pursuant to this section, the New Jersey Rules of Evidence adopted pursuant to "The Evidence Act, 1960," P.L.1960, c.52 (C.2A:84A-1 et seq.) shall be liberally construed regarding the issues of causation and aggregate damages. The issue of causation and damages in this action may be proven by use of statistical analysis.

    2. This act shall take effect immediately.

STATEMENT

    This bill authorizes the Attorney General to bring an action against cigarette manufacturers on behalf of the State Medicaid program to recover costs incurred by that program for treating tobacco-related diseases in Medicaid patients.

Authorizes Attorney General to sue cigarette manufacturers to recover costs incurred by Medicaid program.