Pennsylvania has received a payment of $352,053,249.27 from tobacco manufacturers as part of the 1998 Tobacco Master Settlement Agreement (MSA), according to an announcement by Attorney General Michelle Henry. Since 1999, these annual payments have accumulated to a total of $9.34 billion for the state.
The payments are based on cigarette sales from the previous year and are expected to continue indefinitely as long as cigarettes remain on the market. The funds are allocated by the General Assembly for health-related initiatives such as cessation and prevention services, as well as Medicaid costs.
Attorney General Henry highlighted the impact of these funds: “The funding from this settlement agreement has enabled the education of Pennsylvanians on the many dangers and health risks associated with cigarettes and other tobacco products.” She added that it also supports efforts to keep tobacco products away from young people and provides treatment services for those affected by tobacco use.
The Pennsylvania Office of Attorney General is responsible for enforcing MSA terms, which include restrictions on cigarette advertising and marketing. It also oversees compliance with laws requiring non-MSA companies to maintain escrow accounts for potential lawsuits and mandates certification of cigarette products sold in Pennsylvania.
Additionally, the office enforces the Cigarette Fire Safety and Firefighter Protection Act. This legislation mandates that manufacturers produce self-extinguishing cigarettes to reduce house fires, thereby protecting citizens, firefighters, and property.
Since its inception, the MSA has contributed to a significant reduction in smoking rates across America. Current statistics show that Americans smoke 60 percent fewer cigarettes than they did in 1998.