Michigan Prepares To Receive $776M Opioid Settlement

Michigan Prepares To Receive $776M Opioid Settlement

Introduction

Michigan is all set to receive $776 million from a $26 billion nationwide opioid settlement involving the three largest drug distributors of America, along with drugmaker Johnson & Johnson (J&J), for the companies' role in fueling the opioid epidemic.

The settlement amount would be distributed equally among the local and the state governments of Michigan. House Judiciary Committee has signed three bills regarding the distribution of the money. The funds would be used to address and deal with the impact of the opioid crisis in the state.

The payouts would be executed over the period of 18 years where pharmaceutical distributors Cardinal, McKesson and AmerisourceBergen, as well as opioid manufacturer Johnson & Johnson, would release the funds.

Opioid Healing and Recovery Fund would be created by House Bills to accommodate the money, and an advisory commission would be set up to determine how to spend the money and prevent further civil lawsuits related to opioids.

The bills are yet to be passed through the full House, Senate and be signed by the governor. The advisory committee would consist of 14 members appointed by various legislative leaders. The members need to be experienced in substance abuse prevention, health care, mental health, law enforcement, local government, first responder work or similar fields.

Earlier, the funds received in tobacco settlements were not used for the correct purpose, and creating the opioid fund would ensure that the same mistake would not happen this time. The opioid fund would ensure that the money is not used for unnecessary purposes other than the opioid crisis. The settlement would even help the state to get better resources that were not previously available to address the opioid crisis and support abatement efforts.

The agreement is one of the largest ones in U.S. history after the tobacco settlement of 1998. As per preliminary data from the Centers for Disease Control and Prevention, Michigan reported 3,000 drug overdose deaths in 2021.