CVS Health strikes $484 million opioid settlement with Florida

Photo: Jeff Lagasse/Healthcare Finance News

CVS Health has entered into an agreement with the State of Florida to pay the state $484 million to resolve claims dating back more than a decade related to prescriptions for opioid medications that were filled at Florida CVS Pharmacy locations.

Under the agreement, the $484 million will be paid over the course of 18 years, according to a statement. As a result, CVS Pharmacy will no longer be a defendant in Florida's opioid lawsuit, scheduled for trial in April. The trial will look at the roles various companies may have had in fueling a nationwide opioid epidemic.

Florida has also reached a $194.8 million settlement with Teva Pharmaceutical Industries, a $134.2 million settlement with Abbvie's Allergan, and a $65 million settlement with Endo International, according to Reuters.

Most of the money will be spent on opioid abatement efforts, and Teva will provide $84 million' worth of its generic Narcan nasal spray, which can temporarily reverse the effects of opioid overdoses.

The settlement is not an admission of wrongdoing, CVS Health said.

"As a result of the unique facts and circumstances of the Florida claims, the settlement value should not be extrapolated to any other opioid-related litigation in which CVS Health is involved," the company said. "CVS Health will continue to vigorously defend against other lawsuits relating to opioids."

WHAT'S THE IMPACT?

CVS Health promised to continue a number of efforts aimed at fighting opioid abuse, including investments in technologies meant to aid pharmacists in their jobs, as well as policies relating to the dispensing of controlled substances, though the organization stopped short of providing additional details about these technologies and procedures.

The company also highlighted educational programs, including a Pharmacists Teach program focused on prescription-drug misuse. To date, that program has reached about 600,000 teens and parents, CVS said.

The organization also highlighted the rollout of more than 4,000 medication disposal units in stores and local police departments across the country, which to date have collected four million pounds of unused medication; and the installation of time delay safes in nearly 6,800 pharmacies across 23 states and Washington, D.C., to help deter opioid robberies.

Though CVS Health is now out of the mix, the State of Florida is proceeding to trial against pharmacy chain Walgreens, with jury selection slated to begin April 5.

According to Reuters, Walgreens has claimed its opioid-related settlement with Florida in 2012 covered the state's latest claims, and said it would defend itself against "unjustified attacks" on its pharmacists.

THE LARGER TREND

Florida announced the terms of the settlements just days after Rhode Island struck similar agreements with Allergan and Teva worth an estimated $107 million.

Meanwhile, Johnson and Johnson, as well as three major drug distributors – AmerisourceBergen, Cardinal Health and McKesson – have finalized a proposed $26 billion settlement resolving claims by states and local governments that they helped fuel the opioid epidemic.

State, local and Native American tribal governments have filed more than 3,300 lawsuits accusing drugmakers of fueling opioid abuse, by means such as downplaying the risks of addiction.

According to the U.S. Centers for Disease Control and Prevention, more than 500,000 people have died from opioid overdoses over the past 20 years, including almost 76,000 in the year ending April 2021.

In December, the Department of Health and Human Services announced a harm reduction grant program to support community harm reduction services that curb and treat addiction. Grants made available through the Substance Abuse and Mental Health Services Administration (SAMHSA) Harm Reduction grant program are intended to increase access to harm reduction services and support harm reduction service providers.

HHS Secretary Xavier Becerra said funding for the grant program will come from the American Rescue Plan to the tune of about $30 million.

The Biden Administration revealed the four-pillar opioid-mitigation strategy in October 2021. That same month, as part of a $1.5 billion investment through HHS' Health Resources and Services Administration, a number of health workforce loan repayment and scholarship programs were announced, with funding set aside for the opioid epidemic.

Through dedicated funding for substance use disorder professionals, HRSA is now supporting more than 4,500 providers treating opioid and other SUD issues in hard-hit communities. The Substance Use Disorder Treatment and Recovery Loan Repayment Program was launched in FY 2021 to create loan repayment opportunities for several new disciplines that support HHS' response to the opioid crisis, including clinical support staff and allied health professionals.
 

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com