Tobacco MSA (Hawaii)

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The Tobacco MSA with Hawaii is the particular version of the Tobacco MSA that was signed by Hawaii, was enabled by means of legislation of Hawaii, and has been interpreted since then in Hawaii state courts.

On January 31, 1997, Hawaii sued the major domestic tobacco companies, seeking damages for costs related to tobacco-related injuries suffered by its MEDICAID recipients. Hawaii's lawsuit was based upon a variety of theories including false advertising, fraudulent and negligent misrepresentation, civil conspiracy, negligence, products liability, and restitution for health care costs for recipients of public assistance.

On November 23, 1998, Hawaii, along with 45 other states that had filed similar actions against the tobacco companies, entered into a "global" settlement. Under the Master settlement agreement ("MSA"), which memorialized the "global" settlement, the tobacco companies agreed to take steps aimed at reducing or eliminating tobacco use by minors and educating the public at large about the dangers of tobacco use. MSA, at 18-47, available at http://www.library.ucsf.edu/tobacco/litigation (Nov. 1998). The tobacco companies also agreed to pay various sums to the settling states over 25 years, in amounts to be calculated based upon a complex formula. Id. at 112-114. It is estimated that at the end of the 25-year payout, the State of Hawaii will have received as much as $ 1.38 billion.

Hawaii has established the Hawaii Tobacco Settlement Special Fund, into which its share of the tobacco settlement proceeds will be deposited. Under related state legislation, effective July 1, 2002, the settlement funds received by Hawaii will be allocated as follows: (1) twenty-four and one-half percent to the emergency and budget reserve fund; (2) thirty-five percent to the Department of Health for funding the children's health insurance program and the department's health promotion and disease prevention programs; (3) twelve and one-half percent to the Hawaii Tobacco Prevention and Control Trust Fund; and (4) twenty-eight percent to the university revenue-undertakings fund for the payment, as may be necessary, of principal and interest on revenue bonds issued to finance construction of a health and wellness center, including a new medical school facility, at the University of Hawaii on the Island of Oahu. Haw. Rev. Stat. ยง 328L-2 (2001).

Failures to regulate contracts with the Tobacco Quit Now program

The Quit Now Program in Hawaii is not being regulated by any oversight. There was at least one complaint sent to the Hawaii Department of Health and Human Services, where a caller complained that she was "hung up on" by one of the representatives. She initially spoke to the program administrator who never returned her call after she experienced anything but professional service, after being hung up on while explaining her PTSD and the aggravated contributing circumstances of being specifically targeted, which caused her to smoke more than normal, to which she made the effort to contact the same Hawaii Quit Now quit line for the second time within a year, and was again turned away. The client subsequently filed a complaint with Hawaii Health Department and Department of Health Human Services branch of the CDC. The letter was responded to by Health and Human Services division of the CDC. Are these people receiving funding and not addressing the oversight failures and false statements made in their advertising?

Letter from CDC: "Thank you for your email regarding Hawaii Quit Now. Telephone counseling is a proven effective method for assisting smokers who want to quit. (As the patient was attempting to do, until she was hung up on by the representative, and the administrator never called back after leaving the complaint...the administrator tried to ASSURE the client would be helped, but this was NOT the case. A subsequent letter was written to CDC programs for awareness purposes that some of the callers are being rejected, especially where there is a disability involved.) Letter continues: The Center for Disease Control and Prevention (CDC) supports the state of Hawaii through the National Tobacco Control Program. The four goals of the program are to: eliminate exposure to second hand smoke; promote quitting among adults and youth; prevent initiation among youth; and identify and eliminate disparities among population groups. To date, CDC funding has not supported direct services provided by Hawaii's Quit Now program. Rather, these services are supported through the Tobacco Master Settlement Agreement with Hawaii. (Signed by) Ursula Bauer, Ph.D. M.P.H. Director, Center for Chronic Disease Prevention and Health Promotion." Upon these facts, the method claimed is proof that there are some who are circumvented and neglected their professional responsibility through a biased application of statewide programs, especially towards those who truly need help and become more disabled as a result of uninvestigated fraud and program failure, absent of effective government oversight.

References

  • Cardenas v. Anzai, 311 F.3d 929 (9th Cir., 2002) (quoted verbatim from public-domain source)
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