Tobacco companies to pay Indiana $217M over two years - 13 WTHR Indianapolis

Tobacco companies to pay Indiana $217M over two years

Updated:

Major tobacco companies will pay the State of Indiana $217 million over two years as part of a settlement reached this week, the Indiana attorney general announced.

Greg Zoeller's office says it's the result of a battle with Big Tobacco over what they must pay Indiana to reimburse the state for health costs of smoking-related diseases.

Indiana lost funds due to a ruling last year, but today's settlement means the state can recoup that funding and restore funding that might have been cut from tobacco-cessation programs. In addition to the $217 million over two years, Indiana will also receive between $110 million and $115 million each year from 2019 through 2024, although that could fluctuate based on factors such as cigarette sales volume.

The agreement will fund programs determined by Indiana lawmakers that are dependent on tobacco sales.

Funding:

Indiana will receive a net total of approximately $217 million this year and next year, in three disbursements:

· $68 million already paid in April 2014

· plus another $24.8 million adjustment to cover the 2003 loss payable counted toward 2014 that will be paid this year

· $124 million for 2015 itself.

Annual tobacco settlement payments to Indiana under the original 1998 MSA and new agreement:

2000 $166,937,748

2001 $127,758,967

2002 $149,249,534

2003 $147,987,933

2004 $128,086,210

2005 $125,486,772

2006 $117,880,683

2007 $122,854,298

2008 $147,442,295

2009 $160,954,284

2010 $134,718,806

2011 $127,037,342

2012 $129,531,423

2013 $129,383,734

2014** $ 68,000,000 (to date)

2014* $ 93,000,000 (total payment for 2014 once settlement adjustments are made)

2015* $124 million

2016* $133 million

2017* $132 million

**Amount for 2014 changed due to new settlement; revised in separate line.

*Estimated payments projected based on new settlement formula.

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