Tobacco Documents Online

SENT BY; 1-12-99 ; 3:53PM ; ARNOLD & PORTER #7- +2023472685;# 2/ 7 DEPARTMSNT OF BEA.L'i'!3 & HUMAN SERYICCES flnArb Cum Kmnong AdnXiCISLabon 750 5cmvk7 Bo.devm.rd 8.kimoft, MD zxzt4-1g5o W11 3 l9sl Aea.r Stam iufo&cxid D'a+eceor. A nsembec of Stues htve settied svas agaiast one or moK tobecoo eoeapaniea to rec.oup costs incatrtud in tttamca tobsoootdaacd Mk.cascs. T}at lrstcr destx4bes tbc prupcr aocotmtiag aad .tepots£ng tbr Fedasl MieScaid putposeiaf anwuats troccrved 6rota auh settlaneccs that aro wbjea to Saction 1903 (d) af thc Soc4a! Soauity Act. Ao deacnbed in tlx sta4tte, StaLataust aDocate $wa tfte smoac¢ of soy I&e&caid-reLated cq~oa~ae t¢vray'SeLc pewm~metn.~6idxtt~e Unaad Stsfts (Pedexal go~rots+~) is oqoitably mtitlod_" As with ssp teoovrirtd.t6ed taaD4effi=d aN?cadtr¢t; pa.yz~cnts tsaived shottld Lc cefloctcd on the QuwUahrStaooaa¢ ofExqpaStrnos fac tbc Mcd'xaidAssie P:ogcam (SCFA 44) for t!x quacaer in.r6i6 6ay m reocireb SpacHicallY. tlwse moeptr. sSwo(d bc a:poitod on tLc Porm EiCF1~ 64 Sismanay5lnocL I1uc 9E, This fura is 1ucc. ad for spaial mIIeetio~zs, TheFadaal sbm sboofd Se calailsLod usng tbemareoi Fodaal Medeead /lsashnoePaomtag~ Plaseaocett~scafmin¢papmqalsrtprescstacaoditapp5nbletothe ivtadcmd pcvgnuu w3x~het ornotibe mocnrs uc.eeeired diaer~y 6y the State Med•Scaid agancy- Slat- t5at have previou* stpexted=opppts fsnm tobacco r4gstioa walctnents awst eoatiauc to xejOCt %;atl®ac paymrrns as dxq ate tooeivod. State sdmiaisaatip+c eosts mumrod iapiast5t o(Mafinid enst reoovrries 1Yam mbauo fatmc qoaTffp forthe ao=a] S0 paocat Fedaa fmaoaal pottioipstioa (EFP). Ihcy shoold be t+cposted ou thcForm $CFA-64.1U, Linc I4 (OtLQ F~nml Pucc~uica)_ t?nly Modioidtdatcd axpca&wc tcowraia uc sLiiod to tbc, Fodaal sharc taquuao~ To the adent dnt same aoa 1~(ad'ic+id eapwdiRmues.nd/ocrmowecia v.cc also induded in t!w emdadying Iawsitz. KGFA will accept ajusGfitble.Uoeatioa [e8octitV the.Nkdieiid por4on of the reaovery, as tong ss the Stnte ptoMdet neoesstty doanaayatioo to suppott a ptoposrd allocation. Unda cvrruwt law, tobacco satlmta¢ .ooavcia crmnt loc troatad LScn euy othcc Modiaid reoo.raia we roeogaizothat Coagress anll emnsida the trcatmaa of tohaeco sctdCments in the eontaa of any cornprdsauive tobamo Icgislaaioq nau Ycar: Crtvca thc StaW rolc ia iaiSatiag tobacco lawsuits and in Seanang Modioid progazVs, States ..r'.llL of coorsc, havc an impoctant voice in the devflopmesnt otsueh fegislatioa, inahiding the allocation of any rrsulting fevcmuo. 'Il+e Admiai.ttration will work dosdy with Smtes durisg this Eegsintive process as these issurs aro dccided. EXHIBIT 2

SENT BY: 1-12-99 ; 3:53PM ; ARNOLD & PORTER #7- Pagc x- Sfatc Modicrid Iht+xYOT +2023472685;# 3/ 7 If you woald G1x to diaeuss i6e eppropri.Oc rrporauz of ceeovccics widt HCxA, please caU David Md1aSy ofsay ataff'at (410) 786."l29Z fn amnge foe a mroeCng or oomeamtiaa Wc look forwud s4 Provid~ say assis4u+oc aoodcd ~ atatiag : Statc•s Ma~ioid ohTig~rioa 7 sauyK xek6ram., Dircaa centcr ro<Maalmk and scatc opu-4oru AII H(FA Regiomd A4miainrato=z AM Ei(FA Assoc7atc Regioad AAmimiarstca [br Madtculd sad Stsec Oprntions LxPactt{dga Ame[iaaaPublie WdGcc Asmdeuon Jay FFilsa. I'Istioosl Caarerettoc of State Leeulatiuc Iaei&sSaroenddl Nationa! Gavernots' Assoqa[ian N O V N