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New Hanover County set to receive 'Wave Two' of Opioid Settlement funds

At Monday’s regular New Hanover County Commissioners meeting, members voted to accept between $14 and $18 million in second wave of additional Opioid Settlement funds as part of the consent agenda.

These are in addition to the “Wave One” settlements, which came from the initial $26 billion settlement Attorney General Josh Stein negotiated alongside other attorneys general in July 2021. According to More Powerful NC. The agreement holds three of the largest drug distributors (McKesson, Cardinal Health, and AmerisourceBergen) and manufacturer Johnson & Johnson responsible for their roles in fueling the opioid epidemic.

The settlements require that the distributors and J&J pay $26 billion over 18 years, with New Hanover County receiving $18 million.

The State of North Carolina, all 100 counties, and 47 municipalities have formally joined the settlements. This 100% participation by counties and larger municipalities in the Wave One Settlements enabled the state and local governments to receive 100% of the collective share of the national settlement funds.

The first payments from these settlements were received by North Carolina’s state and local governments starting on May 31, 2022.

RELATED: Joint city-county commission opioid committee unanimously approved suggested settlement use

Certain rules, known as the Memorandum of Understanding (NC MOA), govern what the settlements can be spent on. The NC MOA dedicates settlement and bankruptcy funds to addressing the opioid epidemic, with 15 percent of funds going to the state and 85 percent to local governments.

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The NC MOA offers local governments two options:

  • Under Option A, a local government may fund one or more strategies from a shorter list of high-impact strategies to address the epidemic.
  • Under Option B, a local government first undertakes a collaborative strategic planning process and then chooses a strategy from the shorter list of Option A strategies or a longer list of strategies included in the national settlements.

The MOA also requires state governments to be transparent about how they spend their funds, with a public dashboard and annual financial reports.

Monday, commissioners talked about Wave Two Settlements. Stein also helped lead negotiations for $21 billion in national settlements released in November and December 2022 with CVS, Walgreens, Walmart, Allergan, and Teva. North Carolina’s state and local governments could receive more than $600 million over 15 years from the Wave Two Settlements. New Hanover County is slated to receive between $14 million and $18 million from the new settlement.

If North Carolina achieves the same 100% participation by counties and larger municipalities, funds from the Wave Two Settlement should start arriving in North Carolina during the second half of 2023. More Powerful NC clearly states the Supplemental Agreement for Additional Funds from Additional Settlements of Opioid Litigation (“SAAF”) provides the bulk of the money from the Wave Two Settlements.

The SAAF extends to the Wave Two Settlements the basic terms of the MOA that governs the Wave One settlements.

April 18, 2023, is the deadline to sign onto the Wave Two Settlements and SAAF.

Wave Two Settlement FAQ.

Camille hails from Long Island, NY and graduated from Boston University with a BS in Journalism and double minors in Classical Civilizations and Philosophy. Her story focus revolves her deep care for children, young adults and mental health. You can reach her at cmojica@whqr.org.