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<br />Minnesota Opioid Settlement Executive Summary <br /> <br />Minnesota has joined a broad multistate coalition in reaching nationwide settlements with the three <br />largest opioid distributors – AmerisourceBergen, Cardinal Health, and McKesson – and opioid <br />manufacturer Johnson & Johnson. The settlements resolve investigations and lawsuits against <br />these companies for their role in the opioid crisis. If the settlements are fully adopted nationally, <br />the distributors will pay $21 billion over 18 years and Johnson & Johnson will pay $5 billion over <br />10 years. Most states have already joined the settlements, but for the agreements to become <br />effective, a critical mass of cities and counties must sign onto the settlements by January 2, 2022. <br /> <br />Settlement Structure <br /> <br />If a critical mass of subdivisions sign on and the settlements become effective: <br /> <br /> Minnesota will be eligible to receive more than $296 million over 18 years. Up to $222 <br />million of that will be paid directly to Minnesota cities and counties. The total amount of <br />payments to Minnesota will be determined by the overall degree of participation by cities <br />and counties. The more cities and counties that join, the more money everyone in <br />Minnesota will receive. Distribution within Minnesota will be determined by the state- <br />subdivision agreement (see below). <br /> <br />o Each state’s share of the funding was determined by agreement among the states <br />using a formula that takes into account the impact of the crisis on the state—the <br />number of overdose deaths, the number of residents with substance use disorder, <br />and the number of opioids prescribed—and the population of the state. <br /> <br /> Payments will begin to flow to the state and cities and counties as soon as April 2022. The <br />Johnson & Johnson settlement provides for payments to be accelerated if cities and <br />counties sign on early. <br /> <br /> The vast majority of the settlement funds must be used to support any of a wide variety of <br />strategies to fight the opioid crisis. The Attorney General’s Office convened an expert <br />panel of local, state, and community providers with experience and expertise in public <br />health and delivery of health care services to determine the best and most effective use of <br />the settlement funds. The panel selected a comprehensive list of future opioid abatement <br />and remediation programs that will benefit all regions of the state. <br /> <br /> In addition to the financial components, the settlements also require the companies to make <br />changes in how opioids are distributed and sold. The companies will be subject to far more <br />oversight and accountability throughout that process to prevent deliveries of opioids to <br />pharmacies where diversion and misuse occur. The distributors will be required to <br />establish and fund a centralized, independent clearinghouse using detailed data analytics <br />to keep close track of opioid distribution throughout the country and raise red flags for