U.S. SHOULD SHARE IN TOBACCO PAYMENTS TO STATES, STUDY SAYS

WASHINGTONA Medicaid advocacy group released a study Friday arguing that
the federal government is entitled to a shareperhaps worth billions of
dollarsof tobacco settlement money being paid to states.

The analysis by the nonprofit, nonpartisan Center on Budget and Policy
Priorities argues that since Medicaid is a shared federalstate program and
that by law the federal government is entitled to its share of Medicaid
money recovered from a third party, states cannot claim the entire tobacco
settlement.

On Monday, the governors or Florida and Mississippi wil argue their
objections to giving the federal government a share of the settlement
before a House Commerce subcommittee headed by Rep. Michael Bilirakis,
RFla., who has introduced a bill that would exempt states from any
requirement that they share tobacco settlement money.

Thus far, Florida and Mississippi are the only states that have settled
individual suits against the tobacco industry.

Florida is scheduled to receive $11 billion; Mississippi is to get $3.4
billion.