An Act making a special appropriation for the medical assistance for needy persons program and for certain programs relating to tobacco smoking and use

Updated: March 22, 1999

Alaska will receive $669 million over the next 25 years as a result of the tobacco settlement (See Tobacco Litigation Links for additional information.). In 1999, Alaskan smokers will be paying over $65 million in taxes and increased cigarette prices directly related to the settlement. Currently, only $200,000 is budgeted for tobacco control programs. This legislation is simply about fairness for all smokers in Alaska who not only inspired the lawsuit that led to the tobacco settlement, but who are also paying for the settlement out of their own pockets.

CSHB21 is an appropriation bill that would allocate 50 percent of the funds received before July 1, 2000 to the medical assistance program and 50 percent to a comprehensive tobacco smoking cessation and tobacco use prevention and control program.

Appropriating a portion of the settlement to the medical assistance program will help offset Alaska's Medicaid expenses attributed to smoking-related illnesses. Increased Medicaid expenses were among the damages claimed by the State in its lawsuit against the tobacco companies, and the State has an obligation to use a portion of the damages it collected for Medicaid.

There are 110,000 smokers in Alaska, and 80% of these people wish to quit. The designation of the remaining portion of the settlement for a comprehensive tobacco smoking cessation and tobacco use prevention and control program aids Alaskans who currently smoke and helps discourage others-our youth, in particular-from starting. As a smoker myself, I am personally aware of the hazards of smoking, the difficulties involved in quitting, and the importance of having access to the proper resources in order to avoid serious medical consequences. I believe that smokers are the tobacco companies' biggest victims, and consequently have a right to benefit from a portion of the settlement.

Although individuals may still file lawsuits against tobacco companies, it would be difficult for them to win; their resources are limited compared to those of the industry. Practically speaking, the settlement reached between the tobacco companies and the states is the only recourse smokers will have in recovering damages inflicted by the tobacco industry. Thus a portion of the settlement should be allocated to help those who physically suffered at the hands of the tobacco companies.

It is the sponsor's intention that upon passage of this bill, contracts would be awarded to several non-profit organizations under the umbrella of the Department of Health and Social Services (See CSHB37) to carry out the comprehensive tobacco control program. The Department would be responsible for oversight of these programs only, so as to avoid more bureaucracy in government.

The State has the responsibility to disburse the funds in a way that will benefit those for whom the settlement was intended-smokers and those who suffer from the effects of smoking. Smokers are not only paying for the settlement with their pocketbooks; they are paying with their lives. Using their settlement money for other purposes would be unjust. In the long run, all Alaskans-smokers or not-will profit from the appropriations in CSHB21.

I urge you to support this legislation.