Tobacco cos. make payments under state settlement

Published April 15, 2014 7:28pm ET



RICHMOND, Va. (AP) — The nation’s top cigarette makers said Tuesday they have made about $6 billion in annual payments as part of a longstanding settlement in which some companies are paying states for smoking-related health care costs.

Under the 1998 Master Settlement Agreement, participating tobacco companies agreed to make billions in payments to 46 states, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam, the U.S. commonwealth of the Northern Mariana Islands and the District of Columbia over more than two decades. States first received full payments under the settlement in 1999. It was estimated that the companies would pay up to $246 billion over 25 years. Future annual payments also will continue in perpetuity.

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