Opioids are a class of drugs that include both prescription medications, such as oxycodone and hydrocodone, and illegal substances like heroin and synthetic opioids such as fentanyl. These drugs work by binding to opioid receptors in the brain and body, reducing pain and producing feelings of euphoria. However, opioids are highly addictive and can lead to severe complications, including fatal overdoses.
In the 1990s, pharmaceutical companies aggressively marketed opioids to healthcare providers, claiming they were not addictive, which led to widespread prescription use. However, this was a false representation, and the addictive nature of opioids quickly became evident. As patients developed dependencies, many turned to illegal sources when prescriptions were no longer available. This resulted in a surge of opioid misuse and overdoses. From the 1990s to 2021, nearly 645,000 Americans died from opioid overdoses, marking a devastating public health crisis.
Payers were forced to pay billions of dollars for lipids and the resulting medical treatment their overuse required, including emergency room visits and care for opioid use disorder.
Health plan of New York City’s largest union.
Various members of the medical profession, including distributors, pharmacies, and doctors, were held accountable for the large-scale distribution of opioids, which contributed to the epidemic. Thousands of lawsuits were filed, accusing them of prioritizing profits over patient safety. These lawsuits have resulted in settlements amounting to almost $50 billion, aimed at addressing the damage caused by the opioid crisis.
Some of the major benefit plans that initiated these lawsuits include those from Ohio, Oklahoma, Michigan, and New York, as well as the health plan of New York City's largest union. These plaintiffs argued that opioid distributors' actions forced people to pay for costly emergency room visits and medical treatments related to opioid overuse. The distributors were accused of failing to adequately monitor and control the distribution of these highly addictive drugs.
Health plans filed these cases between 2017 and 2019, and the lawsuits were centralized in the Ohio Northern District Court, which has overseen most opioid-related litigation. The settlement process officially began in 2022, marking a significant step toward accountability.
The $21 billion settlement is expected to be divided among more than 40,000 plans, including privately managed federal health employee benefits plans under Medicaid, Medicare Advantage, and Part D. However, government plans that were previously settled, such as those managed by insurers like UnitedHealth, Aetna, Elevance, Cigna, and Humana, will be excluded. Companies like McKesson, Cardinal Health, and Cencora have agreed to pay this sum to state and local governments. This settlement is the largest to date in response to the opioid epidemic.
Reference :
1. Pifer, R. (2024, September 4). Drug distributors agree to $300M settlement for role in opioid epidemic. Healthcare Dive. https://www.healthcaredive.com/news/drug-distributors-300M-settlement-opioid-health-plans/725873/
(Input from various sources)
(Rehash/Yash Kamble/MSM)
