State, counties to share Hawaii’s $78 million opioid settlement

Hawaii’s share of a $26 billion national opioid litigation settlement has gone up a little, and a special committee is to influence how most of the money gets spent combating harmful use of drugs.

Gov. David Ige announced Tuesday that an advisory committee will be formed to assess needs and help guide spending $78 million that’s coming to the state as part of a national settlement with opioid maker Johnson &Johnson and distributors AmerisourceBergen, Cardinal Health and McKesson.

The money is to be received over 18 years, starting at $5.2 million a year for the first nine years and then $3.5 million annually after that.

Settlement proceeds for Hawaii were estimated in February to be a little less — $73 million — with an initial distribution available by the end of June.

Ige said Tuesday that a timetable for initial spending isn’t immediately clear, but will be influenced by an advisory committee to be formed with equal state and county representation.

“Our nation is facing a serious opioid crisis that is claiming the lives of thousands of people, plunging families into tragedy and taking a devastating toll on society,” Ige said. “This opioid crisis has affected many families in our community, and we are thankful that we are able to have these settlements, which will allow us to move forward … with a focus on prevention and treatment, which we believe is most needed in our community, and we anticipate that the assessment will help us identify any gaps and focus the funds in the appropriate places.”

Hawaii’s share of settlement proceeds was determined by a per capita formula that includes drug overdose deaths, substance use disorders and opioid supply.

Ige said Hawaii ranks 37th in the nation for drug overdose deaths, yet more people in the state have died from drug poisoning than auto accidents this year, and that drug overdose deaths accounted for 24% of all fatal injuries in the state.

“These numbers represent real people,” he said. “Too many of us know children, spouses and colleagues who are suffering every day from the impacts of drug addiction and misuse.”

Of the $78 million, 85%, or $66 million, will go toward treatment and prevention, including education, of opioid abuse, while the balance is to be used in the same areas for other drugs.

At least 15% of the $78 million will be spent at the local government level, and each county will determine how its respective share is spent.

The advisory committee will be involved in determining how 85% of the total is spent under an agreement between the state and counties.

Honolulu Mayor Rick Blangiardi, who joined Ige in announcing the spending arrangements Tuesday from Ige’s office at the state Capitol, assured Oahu residents that those involved will do everything they can with the available money to help fight the opioid crisis.

”I know firsthand how real this is, how many people have been really hurt by this, how many families have been destroyed,” he said.

Maui Mayor Mike Victorino participated in the announcement via videoconference and said he welcomes the opportunity to work with the state and other counties to make the best use of settlement proceeds.

“We stand together united to fight opioid addiction and ensure that our families, children, spouses, neighbors, co-workers don’t become victims of drug addiction and misuse,” Victorino said.

In a statement, Kauai Mayor Derek Kawakami and Hawaii County Mayor Mitch Roth expressed thanks for the work up to now by state and county officials to hold pharmaceutical companies accountable for the opioid crisis in Hawaii.

Kawakami said the spending plan announced Tuesday gives families hope that more help is coming.

Roth said, “Many of our first responders and local non-profit organizations have been working in the trenches to keep our families safe and free from the adverse effects of opioids and other illicit substances, and now we can look to amplify their efforts through this settlement.”

The national settlement resolved more than 4,000 claims by state and local governments, and represents the second largest multistate agreement in U.S. history after a tobacco industry settlement, according to the state Department of the Attorney General.

Ige said claims are pending with other opioid makers and distributors that could result in additional money for Hawaii later.