Broselow v. Fisher

No. 01-3933 (3d Cir. Feb. 11, 2003) ; Clearinghouse Number: 55138

Description

Medicaid Recipients Not Entitled to Tobacco Settlement Funds Because Funds Were Not Collected Under Assignment from Recipients, Third Circuit Holds

Abstract

The Third Circuit affirmed the district court’s dismissal of this action brought by Medicaid recipients seeking monies from the 1998 tobacco settlement that concluded the Commonwealth of Pennsylvania’s lawsuit against major tobacco companies. The companies agreed to pay Pennsylvania more than $11 billion. Plaintiffs, a class of Medicaid recipients with various smoking-related illnesses, sought to have Pennsylvania comply with 42 U.S.C. § 1396k(b), which plaintiffs argued required the commonwealth to pay them whatever portion of the tobacco settlement was not used to reimburse the commonwealth for its Medicaid expenses. The district court granted Pennsylvania’s motion to dismiss for failure to state a claim on the grounds that the Eleventh Amendment barred the suit. Plaintiffs appealed. The Third Circuit held that Section 1396k(b) did not authorize the relief that plaintiffs sought because the funds from the tobacco settlement were not collected under an assignment from plaintiffs. Moreover, the court found that, even if collected on assignment, a 1999 amendment to the Medicaid Act, 42 U.S.C. § 1396b(d)(3)(B)(ii), barred plaintiffs’ claims to any portion of the tobacco settlement. That amendment allowed the states to use the funds from the tobacco settlement for any purpose that the states found appropriate.

Additional Information

Attorney Information
Docket Date
2003-02-11 00:00:00+00:00

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