Ellison: Minnesota expects $568 million in opioid settlement money, but a drug company's possible bankruptcy could disrupt one settlement

INTERVIEWER: NPR is reporting that a drug maker may fail to pay $200 million as expected this week as part of a large opioid settlement. If the company, Mallinckrodt, files for a second bankruptcy, it could jeopardize the payments to individuals, as well as state and local governments. Minnesota is part of that settlement, which was reached in 2020.

As this news comes out just days after Attorney General Keith Ellison announced finalized settlements with four companies, drugmakers Allergan and Teva, and pharmacies Walgreens and CVS. The latest deal brings the state's total opioid settlement money to more than $560 million. Some of this money has already reached county and city governments. The hope, of course, is that it will help people get them the help they need as overdose deaths continue to rise.

There's a lot to talk about. And on the line is Minnesota Attorney General Keith Ellison. Thanks so much for coming on the show.

KEITH ELLISON: Oh yeah. Thank you for having me. Really important topic.

INTERVIEWER: Absolutely. So first, I want to talk about these settlements and then we'll get to where that money is going to help Minnesotans. So let's start with that Mallinckrodt news. Is Minnesota at the risk of losing any of that settlement money?

KEITH ELLISON: Well, whenever somebody who signed a settlement agreement and has agreed to make a payment then signals that they might have trouble doing that, it is a legitimate reason for concern. But, look, they do owe the money. We're going to insist upon it.

And we're going to do all we can to make sure that we collect. But when they settle the case, they agree to make their obligations. And we expect to make it. Is there a risk that they won't make it? Yeah, that's what we're reading right now.

But look, I don't want anybody to get the impression that it's guaranteed they won't make full payment. And it may be that they will make a partial one. All these things are being worked out right now. And so at this point, all I can tell you is that we're working very vigorously to make sure that Minnesota gets the compensation that they're due.

INTERVIEWER: Sure. So now let's turn to that $208 million you announced that are coming to Minnesota from Allergan, Teva, CVS, and Walgreens. When the state joined this round of settlements back in December, the estimated payment was $235 million. What's the reason for this difference?

KEITH ELLISON: Well, settlement amounts vary as negotiations go on. Even after we come to an agreement that the amount is going to be paid in principle, sometimes that varies depending upon the settlement formula for each different state when it comes down to actual final settlement. So part of the negotiation is so this is a multistate settlement, and it's all based on a formula.

And so they're estimates in the beginning. And then when we finally come to a final conclusion, we have a little bit more certainty. But the good news is that this brings Minnesota's total recovery to about $568 million. The payments will be coming in over the next 10 to 18 years.

INTERVIEWER: OK.

KEITH ELLISON: And so this is money that can help abate the nuisance, abate the harm, and help compensate people for the harm, including state and local governments, for the scourge of opioid addiction.

INTERVIEWER: Yeah. OK, well, let's dive into that. So 3/4 of the money is being distributed to counties and cities based on a formula. What requirements are attached to make sure this money reaches people who need help?

KEITH ELLISON: Well, look, we want the money to go where the pain is. And where is the pain? Local communities, cities. And we want to make sure the money goes to those local governments who are most expert at determining where that money must be directed to help the maximum number of people.

There are restrictions on what the money can be used for, but it's for education, drug cessation, mitigation, treatment, things like that. That's what the money is going to go for. And there is accountability to make sure that they use it for the proper thing.

Of course, 25% will go to the state. And that is for the opioid-- ORAC is a committee set up by a statute that is made up of a diverse number of interests that will make decisions about where the money goes. And they can distribute some to other units of government or nonprofit groups that do treatment and recovery. And of course, there'll be recommendations from the Department of Human Services.

INTERVIEWER: What opportunities are there for public comment on how that money is spent?

KEITH ELLISON: Well, ORAC is a public institution. And all the local governments that get the money are also public institutions, subject to meeting rules. People should [INAUDIBLE]. People should call their local leaders. People can attend ORAC meetings, which are announced on their website.

And people need to weigh in, because there are a lot of factors here. You want to make sure that the money is going where it's needed most, where the pain is. You want to make sure there's equity, and that tribal communities, communities of color, low income people in rural areas, you want to make sure the money is going where it's supposed to go-- and doesn't just get held up in the large Metropolitan areas, but really goes to those local communities, some of which have received a lot of pain as a result of the opioid addiction.

But our smaller remote communities, they deserve and need the money as much as anyone. So we need active citizen involvement here. And people can trust that we will be looking to make sure that the money goes where it's supposed to go.

INTERVIEWER: And so for those programs around the state that support people with opioid addiction, when will they see that funding start to come in?

KEITH ELLISON: Well, some of it's already begun to flow. And it'll be coming in between now and over the next 10 and 18 years. Different settlements have different schedules, right? So some of them are as long as 18, some are short as 10. But that money is out there and being used now, being distributed now.

INTERVIEWER: And, say, what else are the companies required to do under this deal, in addition to pay money?

KEITH ELLISON: Well, they have to provide information to a national depository for the documents that they relied on. This kind of transparency is very important. It's not just a matter of paying money.

They have to stop doing the wrong that they were doing, but they also have to give documents that describe how they did what they did to a national depository so that the world can know what they did to try to addict people, to try to lie about the addictive nature of their product, how they went after people who were addicted in order to improve sales. This public disclosure is a very important part of what they have to do.

INTERVIEWER: Well, here is hoping all of that makes a big difference in people's lives. Hey, while I have you, I want to ask you, if you don't mind, about the proposed merger between Sanford Health and Fairview Health Services-- switching topics. When do you think you will complete your investigation?

KEITH ELLISON: Well, we're a little more than halfway through it. We have a duty and obligation to do due diligence. We have to make sure that-- we have to look at the antitrust implications of it.

These are nonprofit entities and have obligations under Minnesota charities law. And then, of course, there was a new state law passed that has to do with the attorney general weighing in certain additional factors before mergers go forward, which involve evaluation of the public interest.

So we're a little bit more than halfway done. But we've been gathering documents, gathering public comment, and we've also have been doing depositions. Some of the information we're gathering is public, some of it is not. And just as the people's lawyer for the state of Minnesota, the attorneys general have certain documents that are not subject to the Data Practices Act.

And that's because that just allows us to do what we do better. There's nothing unusual about it. It's normal legal practice.

And so I can tell that if you still want to weigh in, we definitely want to hear your views. If you have a specific information about how this merger is going to affect you, we'd like to know that. And so we're just continuing to dig in.

INTERVIEWER: OK. In some other health news on Friday, Allina Health announced they would pause a controversial policy that allegedly kept people with medical debt from making appointments. Do we know if those practices break Minnesota law?

KEITH ELLISON: Well, I can assure you that we are investigating this matter. We're very concerned about it. You can only imagine somebody saying, well, I'd like to make my next doctor's appointment, but I can't because I owe money, right?

That's not just jeopardizing your health, it's actually injecting anxiety, and fear, and concern. And so these allegations, we are very, very worried about. We are taking them seriously. And I don't mind sharing with the public that, yeah, we're investigating the matter.

And that means we're using the tools provided under the Minnesota law to get to the bottom of what's going on. And people can rest assured we're going to take decisive action if we find these allegations are true.

INTERVIEWER: And last question-- do you plan to investigate if other health care systems have similar practices?

KEITH ELLISON: Absolutely. First of all, we need to confirm these practices. I have reason to believe that they are true because I've heard from credible sources. But we are asking the right questions. But we don't think that they're limited to just one entity.

We don't think Allina is the only one doing this kind of stuff. So there's a number of things that could be done. But first of all, we're in the investigative stage. But I just want folks to know that these allegations are serious. Please contact us at 651-- oh my goodness, I'm forgetting my own telephone number.

INTERVIEWER: Oh, I know. Put you on the spot-- it's the hardest thing to remember, right?

KEITH ELLISON: Yeah, but certainly our website would provide. And you can just go to the Minnesota Attorney General website to complain online and send us information. And then also, again, folks, our number's online as well. You can file a complaint online.

INTERVIEWER: You know what? I have it right here.

KEITH ELLISON: By the way-- and the number is.

INTERVIEWER: 651-296-3353.

KEITH ELLISON: 651-296-3353.

INTERVIEWER: Attorney General, Thank you so much for coming on the show today.

KEITH ELLISON: Thank you, and have a good day.

INTERVIEWER: You too. Take care. Keith Ellison is Attorney General of Minnesota.