Damages to Medicaid from Smoking

Abstract

The recent wave of litigation against tobacco companies has generated a massive compensation for excess expenditures under Medicaid. The calculation of economic damages to Medicaid formed an integral component of the litigation as well as the settlement. How were these damages calculated? What were the main issues arising in the litigation concerning the validity of these damages estimates? These questions are answered using the actual damage calculations prepared for the case brought by the State of Hawaii. Comparable methods are being used in ongoing litigation against tobacco companies.