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ACT NO. 142

(H.749)

Tobacco Manufacturers Liability For Medicaid

This act creates a direct cause of action for the State to use against tobacco manufacturers for the recovery of medical assistance benefits paid by the State for tobacco-related health conditions. The State may recover if it proves that the tobacco manufacturers were either negligent or produced a defective product and that the tobacco product caused the healthcondition. The State may bring a single action; may use a market share theory for allocation of damages; and may use statistical analysis. Affirmative defenses relating to subrogated causes of action do not apply. This new cause of action only applies to Medicaid benefits for tobacco-related health conditions paid by the state after the effective date of this act.

Effective Date: On passage, April 23, 1998