The Kentucky Attorney General’s Office announced the state received over $100 million in this year’s Tobacco Master Settlement Agreement (MSA).
The $100,378,901 received this year brings to $2.8 billion the state has received since 1998 from the nationwide agreement with cigarette manufacturers.
“In 1998, Kentucky and 51 states and territories reached the MSA with major cigarette manufacturers,” the attorney general’s office said. “The historic agreement resolved state lawsuits against the tobacco companies for Medicaid and other health costs related to smoking. In addition to the annual compensation, the MSA seeks to reduce underage smoking and decrease new smokers. Each state determines how the settlement funds are used.”
In Kentucky, half of the funds are allocated for agricultural diversification through grants distributed by the Kentucky Department of Agriculture. The remaining funds are split evenly between the Early Childhood Development Fund and the Kentucky Health Care Improvement Fund.
Under the settlement terms, participating cigarette manufacturers must make a yearly payment to the states based on an annually adjusted rate per number of cigarettes sold each year. Kentucky will continue to receive payments from participating manufacturers each year they sell cigarettes in the U.S.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
