Governor Announces Action Against Opioid Manufacturers

Governor Cuomo, joined by the Commissioner of the Department of Health (DOH) and the Superintendent of the Department of Financial Services (DFS), held a press conference to announce their intention to investigate and seek restitution of up to $2 billion from opioid drug manufacturers and distributors. The administration contends that New York consumers have overpaid an estimated $2 billion in insurance premiums over the past 10 years. This over-payment is due to the costs associated with opioid manufacturers misrepresenting the safety and efficacy of opioids – which in turn has resulted in the over-prescription of opioids, additional addiction treatment and treatment of other adverse health effects associated with opioid addiction. DFS will seek fines and restitution from the opioid industry as a result. DFS has issued subpoenas and other document requests to opioid manufacturers and distributors, New York State-licensed insurers, and pharmacy benefit managers. The department plans to hold public hearings across the state.

Governor Cuomo said:

“The opioid scandal, the opioid scheme, is as diabolical, as brazen, as obnoxious and as offensive as anything I have seen. They knew what they were doing. This was not accidental. It was purposeful and it was an industry wide conspiracy. The more evidence comes out, the clearer that is. It was the manufacturers of the product who knew exactly how addictive it was. It was the distributors. It was the retailers. In some cases literally primary care physicians were also involved.”