A bill to prohibit the recoupment of medicaid-related funds recovered from one or more tobacco companies.

Amends title XIX (Medicaid) of the Social Security Act to prohibit as the treatment of an overpayment for Medicaid-related purposes any amount recovered or paid to a State as part of the comprehensive settlement of November, 1998, between the tobacco industry and State Attorneys General, or as part of any individual settlement or judgment reached in litigation initiated or pursued by a State against one or more manufacturers of tobacco products.

Prohibits such amounts from being used by a State to draw down funds under a State Medicaid plan.