ASSEMBLY RESOLUTION No. 86

 

STATE OF NEW JERSEY

 

INTRODUCED MAY 2, 1996

 

 

By Assemblymen ROMA and BAGGER

 

 

An Assembly Resolution urging the Attorney General to join with other states in bringing an action against tobacco companies to recover State Medicaid costs incurred as a result of smoking-related illnesses.

 

Whereas, It is estimated that over 10,000 State residents die each year from diseases related to smoking tobacco products; and

Whereas, The Medicaid program in New Jersey spends over $4 billion a year providing health care services to indigent residents in the State, many of whom suffer from tobacco related diseases; and

Whereas, The attorneys general in six states have filed an action against the nation's largest tobacco companies to recover costs to their state Medicaid programs related to diseases caused by the smoking of tobacco products; and

Whereas, The Liggett Group, which is the nation's fifth largest tobacco company, recently announced a settlement of a class action suit which reportedly requires the Liggett Group to provide 2% of its pretax earnings over the next 24 years to Florida, Massachusetts, Mississippi, Louisiana and West Virginia; and

Whereas, The settlement also provides that an additional 5% of the company's earnings may be dedicated to other states that join the legal action, based on the number of Medicaid recipients in each state; and

Whereas, With the settlement by the Liggett Group, it appears more likely that states will prevail in their actions against the tobacco industry and, given the size of New Jersey's Medicaid program, this State should be among the group of states that are seeking to recover their Medicaid costs incurred in the treatment of tobacco related diseases; now, therefore,

 

    Be It Resolved by the General Assembly of the State of New Jersey:

 

    1. The Attorney General is respectfully requested to promptly join in legal action with other states against the tobacco industry to seek recovery of costs incurred by the State Medicaid program for the treatment of tobacco-related diseases.

    2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk of the General Assembly, shall be forwarded to the Governor and the Attorney General.

 

 

STATEMENT

 

    This Assembly resolution requests the Attorney General to promptly join in legal action with other states against the tobacco industry to seek recovery of costs incurred by the State Medicaid program for the treatment of tobacco-related diseases.

 

 

                             

 

Urges Attorney General to join action against tobacco companies to recover Medicaid costs.