N.S. to receive $809M from settlement with tobacco companies

Nova Scotia to Receive $809 Million from Tobacco Companies for Health Care Costs

The Nova Scotia government is set to receive $809 million from tobacco companies for the impact smoking has had on the health-care system. This comes as part of a mediated settlement approved by the Superior Court of Ontario on Thursday, where Nova Scotia joined the country’s other provinces and territories in suing the companies for health-care costs related to tobacco use.

Health Minister Michelle Thompson addressed the media on Friday, acknowledging the significant financial burden smoking has placed on the health-care system. However, she emphasized that the most significant cost has been to people’s health and lives.

As part of the settlement, Nova Scotia is expected to receive $200 million in the first year, with the remaining funds distributed over the next 15 to 20 years. The total value of the settlement is $32.5 billion, with the provinces collectively receiving $24.7 billion.

While the money will go into general revenues, Thompson stated that it will be earmarked for bolstering the province’s health-care budget. She highlighted that any injection of funds into the health-care system allows for investments in health promotion, prevention, screening, and treatments.

Thompson added, “Certainly that money will go towards all of those things, but to what degree and amount I really can’t tell you today.”