MORGANTOWN, W.Va. — State Attorney General J.B. McCuskey explained during an appearance on MetroNews “Talkline” Tuesday his recent decision to direct future opioid settlement funds to the state’s general revenue fund rather than the West Virginia First Foundation.
McCuskey, who cancelled the MOU with WVFF, said the types of cases being litigated are much different now.
The first round of lawsuits targeted drug distributors and pharmacy operators; now litigation is focused on Pharmacy Benefit Managers (PBMs). The future cases are expected to be much different, with a smaller percentage of settlements going to legal fees and more money to municipalities, McCuskey said.
“Now, these cases are different, and we now have lawyers on both sides of these two cases that are bringing different causes of action,” McCuskey said Tuesday on MetroNews “Talkline.” “It’s a different day and a different defendant.”
McCuskey said pharmacy benefit managers are the middlemen in the pharmaceutical supply chain that have watched the legal proceedings unfold against the distributors and retailers. The companies associated with PBMs negotiate rebates, provide some incentives, and process claims for health insurers and government programs. McCuskey’s office is overseeing the state case against PBMs.
“They could have put a blanket on the fire, but they poured gasoline on it because they wanted to make money,” McCuskey said. “Now, there are giant multinational corporations that are profiting very distinctly off of over-prescribed opiates.”
Since 2022, 72.5 percent of opioid settlement funds have been directed to WVFF. That no longer applies. McCuskey said the cities and counties are free to pursue their own claims and keep the money they recovery minus attorney fees.
“Which means that every person in West Virginia, at least for this round of funding, will be able to look their delegate or their senator in the eye and tell them they did not spend the money properly.”
The WVFF maintains assets of about $370 million and is set to receive a substantial amount more in the coming years. The foundation has granted nearly $50 million to recovery efforts and organizations in the last two years.
“They will be receiving funding, I believe, through 2031 based on the prior settlement,” McCuskey said. “I think they have somewhere in the neighborhood of $250 to $350 million more that will be coming into the foundation.”
The foundation now has a network of more than 60 expert panelists and representatives from the regions and board who would be available to consult with lawmakers about future spending. The foundation has used the three grant cycles to focus on and learn treatment programs across the state that have made differences in many lives.
“They are able to hone in on who are the people that are doing the best and who deserves it,” McCuskey said. “And what are the smart ways we can utilize this funding moving forward to make $800 million spend like $2.5 billion.”