Jefferson County Receives First Opioid Settlement Payment

By Gordon HopkinsJefferson County has received a check for $2,682.87, the first of a series of annual payments for settlements resulting from lawsuits against manufacturers and distributors of opioids.On July 24, 2021, Nebraska Attorney General Doug Peterson announced a $26 billion multi-state agreement that is intended to bring much needed relief to people across the country who are struggling with opioid addiction. The agreement includes the nation’s three major pharmaceutical distributors, Cardinal, McKesson, and AmerisourceBergen, as well as and Johnson & Johnson which manufactured and marketed opioids.The distributors collectively will pay up to $21 billion over 18 years. Johnson & Johnson will pay up to $5 billion over nine years with, up to $3.7 billion paid during the first three years.The settlement agreements are the result of several years of negotiation that included both the state attorneys general and many private plaintiff attorneys representing cities and counties from around the country.In a statement issued after the settlement was announced, Peterson said, “I have greatly appreciated the significant efforts given in the last five years by the members of the Nebraska Coalition to End Opioid Misuse. As a result of those efforts, we have been able to reduce the impact of opioid misuse in our state. However, with the anticipated settlement funds, we should be able to make a significant impact in treating every Nebraskan who suffers from an opioid addiction. We will need to continue to be vigilant on this issue.”Other SettlementsSince that time, additional settlements have been reached. At a meeting of the Jefferson County Commissioners on Tuesday, November 22, commissioner Gale Pohlmann noted, “I see now where Walmart and CVS and Walgreens have settled also. So I don’t know if that’ll throw some additional payments now on top of that.”On November 14, the Attorney General’s Office announced a settlement with Walmart, “The settlement will provide more than $3 billion nationally with more than $11 million to Nebraska’s Opioid Recovery Fund and participating cities and counties throughout Nebraska.”Negotiations with CVS Health and Walgreens are ongoing but earlier this month both companies announced agreements in principle to pay approximately $5 billion each to settle lawsuits.On July 26, 2022, the Attorney General’s office announced a settlement had been reached with Teva Pharmaceuticals, which agreed to pay a maximum of $4.25 billion in cash over 13 years. The agreement also includes up to $1.2 billion in generic naloxone over a 10-year period, or $240 million of cash in lieu of product. Naloxone is used to counteract overdoses.Opioid Recovery Fund“Addressing opioid misuse and abuse and preventing drug overdoses in our state continues to be a priority. Being proactive in addressing prevention, treatment, recovery at the city, county, community and state level will help improve health outcomes and save lives,” said Sheri Dawson, Director of Behavioral Health in Nebraska Department of Health & Human Services.Settlement agreements involve distributions of money on an annual basis to both a state fund and to allow direct distributions of money on an annual basis to certain “political subdivisions.” Each Nebraska county is listed as a “participating subdivision” under both settlement agreements.In his 2021 letter, Peterson noted, “It is important to note that participating subdivisions must sign on to these settlement agreements in order to receive their direct share as well as to be eligible to receive any additional distribution or grant from the state’s share. Participating subdivisions that do not sign on to these agreements will not only not receive their direct share but will also not be eligible to receive any additional distribution or grant from Nebraska’s Opioid Recovery Fund.”The exact amount that Jefferson County will receive is not yet known and payment amounts may vary from year-to-year. The political subdivision share is 15 percent of the total annual disbursement from the national administrator for each state. The state is also to receive 15 percent. The remaining 70 percent is allocated to a designated fund for the “abatement” of opioid addiction or opioid misuse and other co-occurring mental health or substance abuse issues.In Nebraska, the state’s 15 percent share will automatically be added to Nebraska’s dedicated abatement fund, known as the “Opioid Recovery Fund,” as per the Opioid Prevention and Treatment Act passed in 2020.

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