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. 

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 Substance Abuse in Cass County

  • Opioid-related deaths in Michigan increased by more than 300% starting in 2013.
  • Opioid-related deaths accounted for over 80% of all drug related deaths in the state in 2017, and prescription opioids were involved in over 70% of those deaths. 
  • Approximately 17% of Cass County residents smoke or use tobacco, which is slightly less than state average (18%). 
  • Alcohol and marijuana use/abuse continue to have the highest negative impacts on Cass County residents, but heroin and other drug use were 6-12% of hospital admissions in 2020 and disproportionately high in the court system.

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

Cass County has considerable discretion in spending these funds to address the prevention and remediation of the opioid crisis in Cass County.

Cass County Opioid Settlement Advisory Committee

The Cass County Board of Commissioners appointed the following members to determine a plan for Opioid Settlement Funds for the County.

  • Chair, Carol Montavon Bealor — Chief Judge, Cass County Courts
  • Vice Chair, Bob Weber — Substance Use Disorder Director, Woodlands Behavioral Healthcare Network
  • Roseann Marchetti — Cass County Commissioner
  • RJ Lee — Cass County Commissioner
  • Clint Roach — Cass County Sheriff
  • Jennifer Rentfrow — Finance Director/Interim Administrator
  • Danielle Persky — Director, Cass/Van Buren Health Department
  • Mary Middleton — Former CEO, Cassopolis Family Clinic Network
  • Dr. James Wierman
  • Victor Fitz — Cass County Prosecutor