Prohibition on Treating Any Funds Recovered From Tobacco Companies as an Overpayment for Purposes Of Medicaid.

Sec. 3031. Prohibition on Treating Any Funds Recovered From Tobacco Companies as an Overpayment for Purposes Of Medicaid.(a) Amendment to Social Security ActSection 1903(d)(3) of the Social Security Act (42 U.S.C. 1396b(d)(3)) is amended— (1) by inserting “(A)” after “(3)”; and (2) by adding at the end the following: “(B) (i) Subparagraph (A) and paragraph (2)(B) shall not apply to any amount recovered or paid to a State as part of the comprehensive settlement of November 1998 between manufacturers of tobacco products, as defined in section 5702(d) 113 STAT. 104 of the Internal Revenue Code of 1986, and State Attorneys General, or as part of any individual State settlement or judgment reached in litigation initiated or pursued by a State against one or more such manufacturers. “(ii) Except as provided in subsection (i)(19), a State may use amounts recovered or paid to the State as part of a comprehensive or individual settlement, or a judgment, described in clause (i) for any expenditures determined appropriate by the State.”. (b) Prohibition Payment for Administrative Expenses Incurred in Pursuing Tobacco Litigation.—Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended— (1) in paragraph (18), by striking the period and inserting “; or”; and (2) by inserting after paragraph (18) the following new paragraph: “(19) with respect to any amount expended on administrative costs to initiate or pursue litigation described in subsection (d)(3)(B).”. (c) Effective Date.— This section and the amendments made by this section shall apply to amounts paid to a State prior to, on, or after the date of the enactment of this Act.