Opioid Settlement Funds
Background
In 2021, a $26 billion nationwide settlement was reached to resolve all opioids litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors: McKesson, Cardinal Health and AmerisourceBergen (“Distributors”), and manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, “J&J”).
The state of Michigan is slated to receive nearly $800 million over 18 years. Fifty percent of the settlement amount will be sent directly to county and local governments. The national agreement also requires significant industry changes that will help prevent this type of crisis from ever happening again.
Saginaw County receives $11,361,000 over 18 years. County Commissioners vote on spending totals for each fiscal year, with FY2025 to be approved in September. In preparation, the Opioid Funding Advisory Committee has opened up the process to receive and review proposals.
A state-subdivision agreement between the state of Michigan and local government directs how opioid settlement funds are distributed. All 83 counties in Michigan signed on to this agreement.
In 2022, additional settlements with pharmacies and manufacturers were announced, including CVS, Walgreens, Walmart, Allergan and Teva. Sign-on for settlements with CVS, Walmart, Allergan and Teva are completed in Michigan, but payments have not yet begun. These four settlements are expected to bring in around $450 million to Michigan. The Walgreens national settlement will bring about $175 million into the state to be divided equally between state and local governments, payments have not started. The associated state-subdivision agreement outlines how funds are to be distributed. The state will also receive an additional $138 million from an additional settlement with Walgreens over 18 years.
Impact of Opioid Crisis in Saginaw County
Since 2021…
- Saginaw County has had 201 overdose deaths (2021 – 72, 2022- 62, 2023- 67), 73% were opioid related.
- Among 24-34 year olds, there were 43 overdose deaths with 93% of them being opioid related.
- 2021- 93%
- 2022 – 100%
- 2023 – 80%
- Among 15-24 year olds, there were 7 overdose deaths with 71% being opioid related
- 2021 – 0%
- 2022 – 75%
- 2023 – 100%
- Among 35-45 year olds, there were 62 overdose deaths with 85% being opioid related
- 2021 – 81%
- 2022 – 80%
- 2023 – 83%
- 35% of female and 65% of male overdoses were opioid related
Core Strategies
The committee placed priority on the following items as it relates to spending opioid settlement funds:
- Naloxone or other FDA-approved drug to reverse opioid overdoses
- Medication-assisted Treatment (MAT) distribution and other opioid-related treatment
- Address needs of pregnant and postpartum women
- Expanding treatment for Neonatal
- Abstinence Syndrome (NAS)
- Expansion of warm hand-off programs and recovery services
- Treatment for incarcerated population
- Prevention programs
- Expanding syringe service programs
- Evidence-based data collection and research analyzing the effectiveness of the abatement strategies within the state
5 Guiding Principles
- Principle 1: Spend The Money to Save Lives
- Principle 2: Evidence Based Spending
- Principle 3: Invest in Youth
- Principle 4: Focus on Inequality
- Principle 5: Transparency
Resource Documents
Opioid Funding Advisory Committee
- Aaron Smith – Medical Director Emergency Care Center, Covenant Healthcare
- Dr. Russel Bush – Saginaw County Medical Examiner
- Dr. William Morrone – Medical Director, Recovery Pathways
- Dr. Peter B. Rose-Barry – Professor of Ethics, Saginaw Valley State University
- Elaine Dougherty – Controlled Substances and Trace Unit Supervisor, Michigan State Police Forensic Science Division
- Judge Elian Fichtner – Saginaw County District Court
- Christina Harrington – Health Officer, Saginaw County Health Department
- Jennifer Kreiner – Chief of Health Services, Saginaw County Community Mental Health Authority
- Lisa Coney – Saginaw County Commissioner, District 10
- Tracy Metcalfe – Community Health Improvement Coordinator, Saginaw County Health Department
County of Saginaw
111 S. Michigan Ave
Saginaw, MI 48602