HomeMy Public PortalAbout4.13.2023 Statewide Opioid Settlement AGOStatewide Opioid Settlement Update
Massachusetts Attorney General’s Office
April 13, 2023
Agenda
•Background
•Finalized Statewide Settlements
•New Statewide Settlements
•Municipal Sign-On Process
•Abatement Funds
The Attorney General’s Investigations
Key Findings:
Opioid Manufacturers used unfair and deceptive sales tactics to aggressively promote prescription opioids, including through
tens of thousands of in-person sales calls to Massachusetts prescribers, resulting in a flood of inappropriate prescriptions.
Opioid Distributors failed to implement adequate suspicious order monitoring systems, ignored red flags, and shipped
thousands of suspicious orders to pharmacies across the state.
Pharmacies across the state dispensed opioid prescriptions without sufficient regard for their legitimacy, in violation of their
corresponding responsibility.
The Resulting Tragedy:
This misconduct enabled and perpetuated vast increases in opioid over-dispensing and diversion, and multiplied the toll of
substance use disorder, overdose, and death that the Commonwealth and its residents continue to suffer.
From 2009 through September 2021, state records show that 18,061 Massachusetts residents died of opioid-related overdoses.
More than 68% of those people –12,372 Massachusetts residents –filled prescriptions for Schedule II opioids written by
Massachusetts prescribers.
MA Opioid Settlement Overview
Over $900 million in settlement funds for prevention, harm
reduction, treatment, and recovery services.
Entity Structure Payment
Start Date
Total Payment
Amount
McKinsey ORRF 2021 $13 million
Johnson & Johnson and
Distributors
ORRF and
Municipalities
2022 $525 million
Teva, Allergen, CVS,
Walgreens, and Walmart
ORRF and
Municipalities
2023
[projected]
$421 million
Finalized Statewide Opioid Settlements
Finalized AGO settlements under which Massachusetts municipalities are
eligible to receive direct payments in exchange for signing releases include:
•McKesson, Cardinal, and AmerisourceBergen (the “Distributors”)
•Johnson & Johnson (“J&J”)
Nearly all Massachusetts cities and towns are participating in, and currently
receiving funds under, these settlements.
As of March 31, 2023, over $42 million has been paid to Massachusetts cities and
towns from the Distributors and J&J settlements, and over $86 million has gone to
the state’s Opioid Recovery and Remediation Fund (the “ORRF”).
New Statewide Opioid Settlements
The AGO has reached settlements in principle with the following entities:
•Pharmacies:
•CVS
•Walgreens
•Walmart
•Manufacturers:
•Allergan
•Teva
In order to receive payment under these settlements, Massachusetts cities and
towns, as well as eligible special districts, must sign on to the settlements by
April 18, 2023.
Municipal Sign-On Process
1.Municipalities were sent participation forms and instructions for
completing those forms by Rubris, the settlement administrator, on
February 9, 2023.
2.Municipalities that would like to participate in the settlement
agreements and receive payments must sign and return the forms to
Rubris by April 18, 2023.
3.Please check with your municipalities to confirm that they have
signed on to the settlements. If they have not done so, have them
contact the AGO ASAP.
Municipal Sign-On Process
•Municipalities must sign and return a participation form for each settlement in which
they would like to participate.
•Note:
•The Allergan and Teva settlements have a shared participation form. (“Will your
subdivision or special district be signing the settlement participation forms for the
Allergan and Teva Settlements at this time? Yes/No”)
•Each of the other three settlements (CVS, Walgreens, and Walmart) have separate
participation forms.
•Forms submitted for prior settlements, such as the settlement with J&J, are not
applicable to the five new settlements.
•Prompt sign-on will ensure that Massachusetts and its municipalities receive the
maximum amount of abatement funds from the settlements.
Abatement Funds
•Under the State-Subdivision Agreement, funds from statewide opioid settlements are allocated as
follows:
•40% to the state’s municipalities to expend on approved programs and strategies
•60% to the state’s Opioid Recovery and Remediation Fund
•Requires all funds to be used to supplement and strengthen resources for prevention, harm reduction,
treatment, and recovery.
•Requires annual reporting to EOHHS by municipalities that receive annual payments of $35,000. For
municipalities falling below this threshold, a report is encouraged.
•Draft annual municipal reporting form is submitted through a web-based reporting platform.
•Municipalities are encouraged to pool resources and collaborate, including by leveraging existing
shared services infrastructure: https://www.mass.gov/service-details/public-health-shared-services.
Abatement Funds
On the AGO’s website, you can find:
1.Answers to frequently asked questions.
•https://www.mass.gov/info-details/frequently-asked-questions-
about-the-ags-statewide-opioid-settlements
2.The maximum estimated annual distributions to municipalities if they choose to
participate in the five new settlements.
•https://www.mass.gov/lists/municipal-abatement-payments
3.The maximum estimated annual distributions to municipalities participating in
the settlements with the Distributors and J&J.
•https://www.mass.gov/lists/municipal-abatement-payments
Questions
If you have questions about the final statewide opioid settlements,
the new statewide opioid settlements, the municipal sign-on
process, or abatement funds, please contact the AGO at:
MAOpioidSettlements@mass.gov