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OCT-09-98 16:58 FROM: TOBACCO-FREE KIDS
ID:2022965427
PAGE
2/2
The Advisory Committee on Tobacco Policy and Public Health
Co-Chairs: Dr. C. Everett Koop and Dr. David A. Kessler
October 9, 1998
President William Jefferson Clinton
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear Mr. President:
It is our understanding that the Congress is considering legislation to reverse
longstanding Medicaid law on recovery of Federal funds as it applies to tobacco litigation and
settlements. We would ask you to oppose such a proposal.
This surrender of recovered Federal matching payments would be a bad precedent to set
within the Medicaid program. When the Federal government pays 50 to 80 percent of a
program's cost, and the State is subsequently reimbursed for those program costs, the Federal
government should recover its share of those payments to be used for high priority purposes.
That is especially true in this instance. This question is not simply a routine subrogation
claim against a liability insurance policy. However the money is ultimately described, it arises
because of tobacco-related illness and medical expenses. It should be used for anti-tobacco
purposes. Failure to do so will merely perpetuate the cycle of disease and spiraling health care
costs. This, in turn, will leave the Federal government obligated to match ongoing State
payments for such illness while it, unlike the States, receives no recovery. After months and
years of work, to convert these funds now essentially into general revenue sharing for States is
short-sighted financial policy and seriously flawed public health policy.
We would urge you to resist this last-minute request from the Congress.
Sincerely,
Chick
Danil
C. Everett Koop, M.D., Sc.D.
David A. Kessler, M.D.
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"ocrText": "OCT-09-98 16:58 FROM: TOBACCO-FREE KIDS\nID:2022965427\nPAGE\n2/2\nThe Advisory Committee on Tobacco Policy and Public Health\nCo-Chairs: Dr. C. Everett Koop and Dr. David A. Kessler\nOctober 9, 1998\nPresident William Jefferson Clinton\nThe White House\n1600 Pennsylvania Avenue, NW\nWashington, D.C. 20500\nDear Mr. President:\nIt is our understanding that the Congress is considering legislation to reverse\nlongstanding Medicaid law on recovery of Federal funds as it applies to tobacco litigation and\nsettlements. We would ask you to oppose such a proposal.\nThis surrender of recovered Federal matching payments would be a bad precedent to set\nwithin the Medicaid program. When the Federal government pays 50 to 80 percent of a\nprogram's cost, and the State is subsequently reimbursed for those program costs, the Federal\ngovernment should recover its share of those payments to be used for high priority purposes.\nThat is especially true in this instance. This question is not simply a routine subrogation\nclaim against a liability insurance policy. However the money is ultimately described, it arises\nbecause of tobacco-related illness and medical expenses. It should be used for anti-tobacco\npurposes. Failure to do so will merely perpetuate the cycle of disease and spiraling health care\ncosts. This, in turn, will leave the Federal government obligated to match ongoing State\npayments for such illness while it, unlike the States, receives no recovery. After months and\nyears of work, to convert these funds now essentially into general revenue sharing for States is\nshort-sighted financial policy and seriously flawed public health policy.\nWe would urge you to resist this last-minute request from the Congress.\nSincerely,\nChick\nDanil\nC. Everett Koop, M.D., Sc.D.\nDavid A. Kessler, M.D."
}