Pennsylvania Receives $352 Million Payment from Tobacco Manufacturers for Treatment Services, Education Initiatives

May 10, 2024 | Topic: Consumers

HARRISBURG – Attorney General Michelle Henry announced that Pennsylvania received its annual payment — totaling $352,053,249.27 — from the tobacco manufacturers who signed the 1998 Tobacco Master Settlement Agreement (MSA) with Attorneys General.

Since 1999, Pennsylvania has received annual MSA payments — which now total $9.34 billion. MSA payments are made in mid-April, based on the amount of cigarettes sold in the previous year, and will continue in perpetuity for as long as cigarettes continue to be sold.

MSA payments are directed by the General Assembly to be used by the Commonwealth for various health-related purposes, including cessation and prevention services and Medicaid costs.

“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,” Attorney General Henry said. “The funding also assists my office’s initiatives to keep harmful tobacco products away from young people, as well as treatment services for Pennsylvanians who have been impacted by tobacco products.”

The Pennsylvania Office of Attorney General enforces the terms of the MSA, including prohibitions on advertising and marketing of cigarettes, and enforcement of a law that requires non-MSA companies to deposit money into escrow accounts for the benefit of Pennsylvania in the event of lawsuits, and another law that requires cigarette manufacturers to certify their products, published on OAG’s website, which gives the Commonwealth the authority to seize any cigarettes not certified for sale in Pennsylvania as contraband.

The Attorney General also enforces the Cigarette Fire Safety and Firefighter Protection Act, which requires manufacturers to produce cigarettes designed to self-extinguish, preventing house-fires and protecting citizens, firefighters, and property.

The MSA has also helped Americans to stop smoking, as Americans today smoke 60 percent less cigarettes than they did in 1998.

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