SALT LAKE CITY — Utah was one of 46 states that entered into the 1998 tobacco settlement agreement that brought in $800 million to cover health care costs caused by cigarette smoking, and the money will continue to flow into the state because of a settlement extension.
Attorney General Sean Reyes announced on Tuesday that Utah will receive an additional $30 million and $27 million for 2023 and 2024 respectively.
Utah's participation in the original agreement was orchestrated by former Attorney General Jan Graham to partially compensate for the billions of dollars associated with treating tobacco-related diseases through their Medicaid programs.
To be eligible to receive additional payments, states that are part of the agreement must “diligently enforce” tobacco statutes.
Attorney General Reyes settled diligent enforcement disputes on behalf of Utah in 2018 for the years 2004-2022, and now has secured the extension through 2024.
"Thanks to diligent work by lawyers in the AG Office and other state agencies, we have been able to hold tobacco companies to their MSA obligations even when they have made claims of Utah not enforcing tobacco statutes,” said Attorney General Reyes.
"We will continue to do what is necessary to protect Utahns and safeguard our children from the dangers of tobacco use in all forms.”
Payments from the settlement are deposited into the State Endowment Fund to support of health-related programs such as cancer research, Medicaid, Children’s Health Insurance Program, and alcohol, tobacco, and drug prevention.
