Governor Kathy Hochul announced that New York has made available approximately $192.8 million provided in the first year of the opioid settlement agreements to support a variety of prevention, treatment, harm reduction, and recovery initiatives to help New Yorkers affected by the opioid and overdose crisis.
New York State is receiving more than $2 billion through various settlement agreements with opioid manufacturers and pharmaceutical companies. A portion of the funding from these settlements will go directly to municipalities, with the remainder deposited into a dedicated fund to support prevention, treatment, harm reduction and recovery efforts to address the ongoing opioid epidemic.
The $192.8 million was deposited into the settlement fund account for the first fiscal year, and is being awarded in accordance with the priorities of the New York State Opioid Settlement Fund Advisory Board. This report detailed the expansion of harm reduction services and treatment as the top priorities.
The funding made available includes support for a scholarship program to support more than 300 individuals looking to enter or advance in the addiction services workforce; transitional safety units, which provide funding for providers operating supportive housing programs; recovery centers and outpatient treatment programs ad other treatment, prevention, youth education and transportation services..
“New York is not only leading the way in the efforts to hold opioid manufacturers and distributors accountable, we are taking swift action to put settlement dollars to work to reverse the harm they have caused,” Hochul said. “These efforts are making a difference in communities across the state, and we are continuing to work to deliver further support and assistance so that all New Yorkers can access the services they need through a series of initiatives to address all types of behavioral health needs.”
New York is involved in various opioid settlements. They include one with Johnson & Johnson, which began in 2002 paying up to $230 million to New York. Another is with McKesson Corp., Cardinal Health Inc., and Amerisource Bergen Drug Corp. — three of the nation’s largest drug distributors — that is worth up to $1.1 billion to New York, with more than $1 billion going towards abatement. Payments started in fall 2021 and continue over 17 years.
Allergan Finance began paying up to $200 million to New York in 2022. Endo paid $22.3 million to New York and McKinsey & Corp will pay $32 million to New York as part of a $573 million settlement nationwide
Attorney General Letitia James has also led multistate coalitions in reaching settlements for billions of dollars with CVS, Walgreens, and Walmart. James and other attorneys general have negotiated nationwide settlements with Johnson & Johnson and the three major drug distributers, totaling up to $26 billion nationwide. If the Purdue Pharma bankruptcy plan is approved, the Sackler family and entities they control would pay more than $4.5 billion for opioid abatement nationwide; New York would receive more than $200 million.
Preliminary data show there have been more than 6,300 overdose deaths in New York State in 2022, with opioids involved in more than three-quarters of those deaths.
The state has also launched a multi-year $1 billion mental health care plan recognizes the links between opioid use disorder and other forms of addiction, chronic homelessness, and severe mental health challenges.
Topics New York
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