South Carolina has joined 37 other states and territories in asking an Illinois judge to lower the bond tobacco company Philip Morris must post to contest a civil verdict there.

If Philip Morris has to post the $12 billion bond, it could jeopardize S.C. House leaders' plans to fund Medicaid through South Carolina's share of the tobacco settlement fund.

Attorney General Henry McMaster joined the other states in filing a brief with the Illinois court. The states want Judge Nicholas Byron to lower the bond he has required before the company can appeal a $10 billion verdict against it in the state.

The company has said if it is forced to post the bond it would be unable to make a $2.5 billion payment to 46 states -- due April 15 -- as part of the 1998 agreement to settle lawsuits against five tobacco companies.

South Carolina's share of that payment is more than $30 million.

The five companies agreed to pay the states $246 billion over 25 years. South Carolina's total share amounts to more than $2.4 billion. The state sold $800 million in bonds in 2001 to be paid back with part of its share.

The company has asked Byron to lower the bond to no more than $1.5 billion. The brief McMaster joined does not specify a bond amount. It only asks the judge to lower it. The National Council of State Legislatures also has signed on.

The Medicaid funding plan -- promoted by House Speaker David Wilkins, R-Greenville, and other prominent House leaders -- would allow the state to refinance the bonds sold in 2001 to take advantage of lower interest rates.

Doing so could generate up to $43 million to help fund Medicaid, they say.

Their plan would avoid raising the cigarette tax by as much as 53 cents a pack, which other state leaders support as a way of paying for Medicaid. Supporters of that plan, including Gov. Mark Sanford and Senate Finance chairman Hugh Leatherman, R-Florence, say increasing the cigarette tax would bring in more than $100 million a year.