Opioid Settlement Accountability Act: Addressing Oversight Challenges and Ensuring Effective Fund Utilization

In response to the growing concern over the use of opioid settlement funds, some members of Congress are calling for federal oversight to ensure the billions distributed to state and local governments are used effectively to combat the opioid addiction crisis rather than for unrelated budget needs, according to an article published by NPR.

Representatives Marcy Kaptur (D-Ohio) and Ashley Hinson (R-Iowa) introduced a bill dictating approved uses for these funds, aiming to direct them toward those most affected by the opioid crisis. This move comes as over 100,000 Americans die annually from overdoses and as reports surface of questionable spending of the settlement money by some states.

In response to the number of Americans who die annually from overdose, Kaptur said, "Any effort we can make to try to turn the needle toward treatment, prevention, education, and enforcement is critical. This bill aims to ensure that these funds are used for those purposes and not as a piggy bank for other projects."

Over the next 18 years, settlement funds will pay out opioid settlements worth more than $50 billion. These settlements originate from legal agreements with drugmakers, distributors, and pharmacies, including CVS and Johnson & Johnson. At least 85% of the funds will address the crisis, creating over 100 investment possibilities.

Despite these guidelines, transparency and enforcement issues have made it challenging to track whether states adhere to the 85% rule. Some counties have reportedly used the funds for unrelated expenses, such as paying off debt or purchasing equipment unrelated to direct addiction treatment.

The proposed legislation, the Opioid Settlement Accountability Act, has 2 main objectives. Firstly, it seeks to prevent the federal government from claiming a portion of the settlement funds through Medicaid starting in 2026. Secondly, it requires states to adhere to specific uses of the funds, focusing on treatment, prevention, and support for those in recovery.

However, the bill has been criticized for not specifying consequences for noncompliance or establishing a monitoring entity, leading some to label it as potentially "performative." Moreover, questions remain on how Congress would track the states' use of the money, given the lack of national reporting requirements.

This debate occurs amid a broader discussion about accountability and the federal government's role in overseeing the proper use of settlement funds. While the Biden Administration has not taken a strong stance on the issue, Congress's attention could pressure state and local officials to use the funds as intended. Skepticism remains, but the push for oversight continues, with the hope that it will bring about a more focused and effective response to the opioid crisis.

Reference

Pattani A. Proposed federal law would put limits on use of $50 billion in opioid settlements. NPR. Published January 22, 2024. Accessed January 29, 2024. https://www.npr.org/sections/health-shots/2024/01/22/1225764203/opioid-settlements-law-addiction-crisis