Crowdsourced Database Created Around Opioid Settlement Spending

On July 11, KFF Health News’ Aneri Pattani reported that people fear state legislators will use opioid settlements as a grab bag to fill budget shortfalls. Especially considering the Trump administration slashing federal funding for addiction and Congress approving massive reductions to Medicaid, the largest payer for addiction care nationwide.

“State attorneys general won billions of dollars in opioid settlements from drug companies accused of fueling the addiction crisis,” Pattani wrote. Many families affected by the overdose crisis, recovery and harm reduction advocates, policy experts, and researchers believe that attorneys general aren’t doing enough to ensure the settlement cash is being used for the intended purpose. People affected by the crisis are increasingly worried that no one seems to be guarding the opioid settlement cash while elected officials eye it hungrily, Pattani noted.

In light of these concerns, Pattani reported, “The Opioid Policy Institute and Popular Democracy launched a website that allows members of the public to submit alleged cases of waste, fraud, abuse, and mismanagement of opioid settlement funds.” “Submissions are reviewed by Jonathan Stoltman, director of the Opioid Policy Institute, and then posted with details such as how much money was spent, what was purchased, who made the decision, and links to relevant news articles or budget documents.”

“The database…includes about 150 examples to start, including $2,362 awarded by a Missouri county to its roads and bridge department and $375,600 spent on a body scanner for a Michigan county jail,” Pattani gave as an example.

“About a dozen companies are expected to pay state and local governments more than $50 billion in opioid settlements over nearly two decades,” Pattani remarked. “Purdue Pharma’s case, the most well-known, is still winding its way through court. But other companies, including Johnson & Johnson, CVS Health, and Walgreens, have begun paying.”

“Although the specifics of each settlement deal vary, most require states to use at least 85% of the money on efforts related to the opioid crisis. But enforcement is left to the companies that paid out the money,” Pattani underscored. “Legal experts are skeptical that the companies are monitoring state spending.”