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Court Ruling Could Bring California Millions More In Opioid Settlement Money. Here’s What That Means For LA
Opioid settlement money can be used for opioid addiction prevention and treatments such as Naloxone, which is used to reverse overdoses.
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Scott Olson
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Getty Images
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A $6 billion multi-state settlement agreement with Purdue Pharma moved forward this week following an appeals court ruling that also shields the company’s owners from future civil lawsuits. When approved, the settlement would bring an additional $500 million to California to combat the opioid crisis.
The settlement is one in a series of payouts agreed to by pharmaceutical companies in the aftermath of an epidemic of opioid addiction that has killed more than 560,000 people since 1999, in many cases due to deceptive marketing campaigns to boost sales and failures to prevent rampant addiction.
California is already getting an estimated $2.05 billion through 2038 from agreements with Janssen Pharmaceuticals and the “big three" distributors: McKesson, AmerisourceBergen, and Cardinal Health.
The majority of those funds are earmarked for counties and cities to fund prevention and treatment programs , like the distribution of Naloxone, an overdose-reversing drug, and harm reduction programs. Counties and cities began receiving the first batch of money from those opioid settlements late last year, according to the state Department of Healthcare Services.
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Even as significant funding to deal with substance use is now coming in from drug manufacturers, there’s been a shift in drug use away from prescription opioids. Now, the majority of opioid overdose deaths in California involve fentanyl, a synthetic opioid often found in illicit drugs. Statewide,nearly 6,000 people died in California from a fentanyl overdose in 2021 — more than 1,500 in L.A. County.
How is L.A. County responding?
In L.A. County, fentanyl overdose deaths increased more than tenfold since 2016. In 2021, 1,504 people died of a fentanyl overdose compared with just 109 in 2016. County officials say there’s an urgent need for more harm reduction services.
”“L.A. County is in the worst overdose crisis in our history,” said Dr. Brian Hurley , the county medical director for Substance Abuse Prevention and Control. “It is all too common that people are taking drugs they don't know has fentanyl in it and are overdosing inadvertently.”
About Fentanyl
Fentanyl is an extremely powerful synthetic opioid that can take a liquid or powder form. It’s often mixed in with other drugs in pills and sold illegally.
According to the Center for Disease Control and Prevention, fentanyl is up to 50 times stronger than heroin and 100 times stronger than morphine.
Hurley, speaking to the public affairs show AirTalk on LAist-89.3, said an estimated six out of 10 counterfeit pills sold on local streets have fentanyl in them. L.A. County has already increased its harm reduction budget from $5.4 million to $31.5 million from last year, though the Department of Health Services says none of this is currently funded by opioid settlement funds. The current harm reduction funds are going towards things like:
- Harm reduction syringe services
- Naloxone overdose reversal kits
- A program that distributes pipes to encourage smoking rather than injecting drugs
- Fentanyl testing strips
The county estimates it will receive $250 million from the Janssen and distributor settlements over the next 18 years. While no opioid settlement money is currently included in next fiscal year’s recommended budget , county officials say that could change before the final budget is adopted in October.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
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