Ohio Pushes for a Statewide Opioid Settlement, but Where Will That Money Go?

Local governments now have more time to opt into the “One Ohio” plan to pursue a $1 Billion settlement with pharmaceutical companies and distributors allegedly responsible for opioid-related fatalities.

Attorney General Dave Yost said earlier this week that he was skeptical of the deadline. “I’m really optimistic we’re going to get there, but I need to talk with the governor about the realism of March 6th as deadline,” Yost said, “We probably need to let that sag a little bit.”

Yost said more time is needed in order to bring affected communities and allegedly culpable companies to the negotiating table.

“Critical mass is going determined by the defendants. Do they want to come to the table to talk to Ohio?” Yost said, “I would say today we don’t have enough to get them to the table for an Ohio discussion.”

Although only a few cities and counties have filed lawsuits against drug companies, settlement funds negotiated through the One Ohio plan will be available to every city, village, township and county in the state.

Cuyahoga and Summit counties reached a $260 Million settlement in late January 2020 with AmerisourceBergen, Cardinal Health, McKesson Corp and Teva Pharmaceuticals. That settlement includes both cash and addiction treatment medication, and is split with 62% of funds going to Cuyahoga County and 38% to Summit County, which has earmarked its share of settlement funds for programs fighting and treating opioid addiction.

Settlement funds are managed by the Opioid Abatement Advisory Council. The council identified treatment, harm reduction, system coordination and evidence-based education and prevention as the priority areas most in need of financial assistance.

Children’s Advantage is the largest children’s behavioral health service agency in Portage County. A recent expansion allowed Children’s Advantage to develop a family center to treat both children and parents.

“Our idea is that children and their families will come to one location in the community to receive integrated services,” Regal said. “That families will not have to run all over the county to get their treatment needs met.” 

Regal said drug courts have brought hope to communities, but she thinks treatment and prevention services are in more urgent need of financial assistance.

In a press release on March 4, Yost said the door will remain open to communities that need more time to take formal action to opt into the One Ohio plan, but warned companies could settle with other states ahead of Ohio.

A landmark trial between New York State and a group of major pharmaceutical companies including Johnson & Johnson is scheduled for March 20th. Yost said the closer we get to that trial, the harder it will be for Ohio to reach a settlement.

Yost joined Attorneys General from 20 states, Puerto Rico and the District of Columbia in rejecting an $18 Billion settlement with AmerisourceBergen Drug Corp., McKesson and Cardinal Health. The proposed settlement would have resolved all litigation – present and future – related to the companies’ alleged culpability.

The rate of opioid deaths per capita would determine how much settlement funding would be earmarked for each state. Each year 15% of settlement funding would go to the Attorney General’s office, 30% would go to local governments and all funding must be used on opioid-related issues like treating addiction.

The 55% leftover would help establish a non-profit foundation which would provide treatment through grants to regional councils to fight opioid abuse in their communities.