Del Papa applauds ruling on Medicaid recipients’ suit

Monday, March 5, 2001 | 10:50 a.m.

RENO -- Attorney General Frankie Sue Del Papa is applauding a decision by a federal judge to reject a lawsuit by Medicaid recipients who claim they are entitled to part of the state's $1.2 billion tobacco settlement.

U.S. District Judge Howard McKibben dismissed the suit Thursday, ruling the complaint was barred by sovereign immunity. Lawsuits seeking money damages from states are prohibited unless authorized by Congress or a state agrees to be sued.

McKibben ruled that Nevada collected only its tobacco-related medical expenses and that Medicaid recipients could sue the tobacco companies for any other damages.

Nevada and 45 other states signed a settlement in November 1998 with major tobacco manufacturers that required the companies to pay $206 million over the next 25 years.

"The court decided that the Medicaid law provides health care to low-income individuals and is not the basis for damage lawsuits against the state," Del Papa said.

The states complained that tobacco use increase the costs of the Medicaid program, which is jointly financed by the federal and state governments.