Opioid Settlement Resource Center
Overview
Review the National Opioid Settlements
Distributors and J&J Settlements
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 (50%) 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. Allocation percentages can be found on exhibit A.
Payments from the two settlements (Distributor Settlement and Janssen Settlement) will be received separately. There will also be separate notices for the two settlements and their applicable payments. BrownGreer is the national settlement distributor and is responsible for notifying local governments of their payments.
Exhibit E of the settlement provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation.
- Allocation Notices
The Special Circumstance Fund provides additional opioid abatement funding to address a special circumstance of the opioid epidemic that was not addressed by the original calculations for local government’s allocation percentage. Counties were eligible to apply to the Special Circumstance Fund by Oct. 28. In addition to applying to the Special Circumstance Fund, counties have the right to dispute the calculation of the payment they will receive within 21 calendar days of receiving their settlement payment notice.
Pharmacy and Manufacturer Settlements
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 currently underway in Michigan. These four settlements are expected to bring in around $450 million to Michigan. Additional information about these settlements will be shared as available. View key dates regarding pharmacy and manufacturer settlements.
Additional Settlements
Michigan can also expect additional funds received through companies Purdue Pharma, Mallinckrodt PLC and Endo, which are pursuing bankruptcy plans that include funding opioid abatement trusts. Nationally, settlements with Purdue Pharma, Mallinckrodt PLC and Endo are expected to total $6 billion, $1.7 billion and $19.56 million respectively.
The state of Michigan has already received some of $19.56 million in settlement funds from McKinsey and Co., a settlement from which all funds will be paid to the state.
Tribal Settlements
Federally recognized tribes have filed lawsuits to seek compensation as sovereign governments, separate from lawsuits filed by states, counties and cities. Settlements with the Distributors and J&J will result in approximately $503 million across the country to tribes and Alaska native health organizations. Nationally, tribes can also expect $20 million to $30 million from the Mallinckrodt settlement, to be paid over eight years and an estimated $150 million, paid over nine years from Purdue. Tribal settlements with Allergan, Teva, Walmart, CVS and Walgreens are also underway. Additional information can be found here.
How Should Counties Spend their Settlement Funds?
Michigan Opioid Settlement Funds Toolkit
Templates
- Spending Plan Template (PDF) (Excel)
- PowerPoint Presentation Template (PDF) (PowerPoint)
- Annual Report Template (PDF) (Word)
- Request for Proposals and Associated Budget Template (PDF) (Word) (Excel)
- Vendor/Contractor Agreement (PDF) (Word)
- Pass-through Entity Agreement (PDF) (Word)
- Public-facing Planning Process Document (PDF) (Word)
State of Michigan Resources
View the Opioid Settlement Resource Library
Explore principles and tracking, evidence-based and promising practices, local government tools, legal resources, equity resources, other toolkits and reports and additional opportunities for funding.
Highlighted Resources
- Michigan Opioid Advisory Commission 2023 Annual Report: A Planning Guide for State Policy Makers
- National Association of Counties – Opioid Solutions Center
- Opioid Settlement Tracker
- Opioids | CDC
- Substance Abuse and Mental Health Services Administration
- Michigan State University – Michigan Center for Rural Health – SUD Resources
- University of Michigan – Opioid Solutions
- Michigan Health and Hospital Association – Opioid Epidemic
- Reporting on Addiction
Webinars and Presentations
- MAC webinar on Opioids
- Presentation on Opioid Settlement (2022 Legislative Conference)
Technical Assistance
No-cost external technical assistance providers are listed in the technical assistance section within the Opioid Settlement Resource Library.
Share Your Story
Share how your county is responding to the opioid epidemic and utilizing national opioid settlement fund dollars. Send information to Amy Dolinky at dolinky@micounties.org.
