The Pennsylvania Opioid Misuse and Addiction Abatement Trust (the “Trust”) was established by Order (“Order”) of the Honorable Lori Dumas of the Commonwealth Court of Pennsylvania on July 12, 2022. The Trust is governed by a Board of Trustees consisting of thirteen members. The Trust receives funds from settlements entered into by the Pennsylvania Office of Attorney General and opioid manufacturers, distributors, and pharmacy chains. The Trust distributes those settlement funds to the Commonwealth of Pennsylvania, counties, and subdivisions for use by those entities exclusively to abate the opioid crisis in Pennsylvania.
The Trust is responsible for receiving and investing settlement money, disbursing annual settlement shares to the state, counties, and litigating subdivisions, reviewing county and subdivision certifications and annual reports on spending, and preparing an annual report and accounting for the authorizing court. The Order creating the Trust is available here.
Wave 1: In 2021, nationwide settlements were reached against McKesson, Cardinal Health, and AmerisourceBergen (“Distributors”) and against manufacturer Janssen Pharmaceuticals, Inc. and parent company Johnson & Johnson (collectively, “J&J”). These settlements have been finalized, and payments have begun. In all, the Distributors will pay up to $21 billion over 18 years, and J&J will pay up to $5 billion over no more than nine years. Pennsylvania expects to receive up to $1.07 billion over up to 18 years from these settlements. More information about these national settlements is available here.
Wave 2: In 2022, nationwide agreements were announced between pharmacy chains CVS, Walgreens, and Walmart, and manufacturers Allergan and Teva. These settlements are currently pending. Pennsylvania expects to receive payments for up to 15 years from these settlements. More information about the Teva and Allergan settlements is available here. Information about the CVS, Walgreens, and Walmart settlements is available here.
Mallinckrodt: In 2022, Mallinckrodt Pharmaceuticals emerged from bankruptcy protection and agreed to a $1.7 billion national settlement. In early 2023, Pennsylvania received an initial payment of $7 million. More information about this settlement is available here.
Distribution of settlement funds by the Pennsylvania Opioid Misuse and Addiction Abatement Trust is governed by the terms set forth in the Order. The Order allocates 15% of funds to the Commonwealth of Pennsylvania, 70% to counties, and 15% to litigating subdivisions. In 2022, disbursements were made to the Commonwealth, counties, and subdivisions in August and in December, as settlement funds were received.
Beginning in 2023, disbursements will be made annually per the terms set forth in the Order:
- By September 1: Notification of payments from the Trust to counties and subdivisions.
- By November 15: Counties and subdivisions submit an annual certification to the Trust.
- On or about December 15: The Trust distributes funds to counties and subdivisions.
- On or about June 15: The Trust distributes funds to the Commonwealth.
Information regarding 2023 Estimated Disbursements was sent to counties and subdivisions on August 30, 2023. Payments received and disbursements allocated to the Commonwealth, counties, and subdivisions in 2022, and estimates for 2023, can be found here.
Spending and Reporting
Settlement funds must be spent according to the uses authorized in the settlement agreements and in accordance with Exhibit E. All funds must be spent within 18 months of receipt by the recipient unless a county or subdivision elects to use such funds for a multi-year capital project in accordance with Exhibit E.
Counties and subdivisions wishing to request a 6-month extension, beyond 18 months of receipt of funds, will have the option to request an extension when completing their annual report to the Trust. Due by March 15 each year, this report must include the actual expenditures of such funds and the amount of funds received but not spent by the close of the previous calendar year. At a special meeting on March 1, 2023, the Trust waived the reporting requirements for 2023. Reports on expenditures for the period from September 1, 2022 through December 31, 2023 must be submitted by March 15, 2024.
- A county or subdivision received their first payment on August 31, 2022. This county or subdivision may request an extension when completing their first report (due by March 15, 2024) to use these funds by August 31, 2024.
- A county or subdivision received their second payment on December 30, 2022. This county or subdivision may request an extension when completing their first report (due by March 15, 2024) to use these funds by December 30, 2024.
While these first two extensions must be requested, they will automatically be granted. No further extensions will automatically be granted. If a county or subdivision has not expended the funds or requested an extension when completing their report, further funds will be withheld until the payee is found to be within compliance; after 6 months forfeiture of funds may occur. Note: for funds to be considered expended, they must be spent or committed with a signed contract or memorandum of understanding.
A reporting tool is currently being developed. Additional information and a link to preview the report will be provided on this site soon.
In addition to the annual report to the Trust, non-opioid related expenditures must be reported to the National Administrators every six months. The reporting periods are January 1 through June 30 and July 1 through December 31. Any Participating Subdivision that spent settlement funds for non-opioid remediation purposes, must notify the Trust of the amount and purpose of the expenditure(s) within 90 days of the applicable reporting period.
Requests for Technical Assistance and Trust Inquiries
The Board of Trustees (“Board”) of the Pennsylvania Opioid Misuse and Addiction Abatement Trust (“Trust”) is not specifically authorized to provide advance input to recipients of distributions of Trust funds (or others) with respect to a proposed use of such funds other than to advise that only uses listed on Exhibit E to the Settlement Agreements are authorized by the Settlement Agreements and the Commonwealth Court Order (“Order”) establishing the Trust. Recognizing that recipients may need some level of guidance on such authorized uses, and in an effort to maximize appropriate uses of such funds in compliance with the Settlement Agreements and Order, a technical advisory group meets to consider various submitted questions raised by recipients of Trust funds (or others). Such responses should be considered informational in nature and should not be considered to be deliberations, the results of deliberations or official action of the Board of Trustees or the technical advisory group.
Requests for technical assistance and inquiries should be submitted via the Contact Us form. Prior to submitting a request, please review the FAQs. Requests for additional information or guidance not previously answered will be considered by the technical advisory group and the full Board of Trustees prior to receiving a response.