Tobacco Control Issues

Master Settlement Agreement

The Master Settlement Agreement (MSA) of 1998 is the settlement between the tobacco industry and 46 U.S. states, including Pennsylvania.  Through the MSA, Pennsylvania will receive about $11 billion between 2000 to 2025.  Nationwide, states will receive a total of approximately $206 billion.

Pennsylvania’s General Assembly signed a law in 2001 to allocate the MSA funds as follows:

  • Insurance for uninsured adults = 30 percent
  • Health-related research = 19 percent
  • Home and community-based care for seniors = 13 percent
  • Tobacco prevention and cessation = 12 percent
  • Hospital charity care = 10 percent
  • Prescription drug assistance for seniors (PACENET) = 8 percent
  • Endowment for future health care programming = 8 percent

Over the past several years, however, legislators have shifted much of this money away from tobacco prevention and cessation to fund other projects.

Tobacco Settlement Fund Overview 2016

In June 2011, the Pennsylvania State Legislature and Governor Tom Corbett passed the Fiscal Year 2011/2012 budget.  Monies for the Tobacco Prevention and Cessation programs remain in the Tobacco Settlement Fund.  Significant cuts were made to the program as in past years.  The Tobacco Prevention and Cessation program is currently funded at $13.945 Million.
More about comprehensive tobacco prevention & cessation programs…