Our Pennsylvania opioid insurance company litigation lawyers offer representation to insurance companies suffering third-party payor economic damages as a result of the opioid crisis. The opioid epidemic sweeping the nation was caused by the illegal and aggressive marketing of prescription opioids and has significantly increased insurance companies’ annual costs.
A report by the Centers for Disease Control and Prevention (CDC) revealed that health insurance costs accounted for over 33% ($26.1 billion) of the $78.5 billion in costs incurred by the United States as a result of opioid abuse in 2013. Additional costs were due to:
- productivity reductions ($42 billion)
- greater criminal justice costs ($7.6 billion), and
- increased costs for treatment of substance abuse ($2.8 billion)
Pennsylvania insurance companies may be entitled to compensatory and other damages from prescription opioid manufacturers for increased costs resulting from the opioid crisis.
According to studies reported in a 2010 issue of the Journal of Pain & Palliative Care Pharmacotherapy:
- insurance company costs for insureds suffering from opioid abuse are significantly greater than those incurred for non-abusing insureds
- opioid abusers insured by Medicaid incurred over $6,600 more in annual medical costs than non-abusers insured by Medicaid
- opioid abusers insured by private insurance companies incurred over $14,000 more in annual medical costs than non-abusers insured by private insurance companies
Studies also show that prescription opioid abusers are more likely than non-abusers to avail themselves of:
- hospital emergency department services
- physician clinic and other outpatient services
- outpatient mental health services
- inpatient hospital and mental health services
A study published in the February 16, 2010, issue of the Journal of Managed Care Pharmacy (JMCP) found that healthcare costs of opioid abusers are 8.7 times higher than those of non-abusers.
Causes of Opioid Related Insurance Company Costs
Illegal and aggressive marketing by prescription opioid manufacturers resulted in:
- a rapidly growing national opioid crisis created by easily accessible prescription opioids that quickly result in users’ abuse and addiction
- sharply increased costs for insurance companies whose insureds are affected by opioid abuse and addiction
Legal actions brought by Pennsylvania opioid insurance company litigation lawyers may allege that prescription opioid manufacturers:
- illegally and aggressively marketed prescription opioids
- deliberately understated the risk of addiction associated with prolonged use of prescription opioids
- deliberately understated the difficulties of opioid use withdrawal
- deliberately understated the difficulties of opioid addiction prevention and management
- deliberately understated the increased risk of opioid addiction resulting from increased opioid dosages
- deliberately exaggerated the benefits and safety of prescription opioids
- deliberately understated the benefits and effectiveness of safer methods of pain management
- otherwise understated the serious risks associated with prescription opioid use
- continued these illegal and aggressive marketing tactics in the face of a widely recognized developing opioid crisis
Recoverable Costs in Opioid Insurance Company Litigation
Damages that may be recoverable by insurance companies in opioid insurance company litigation may include, but are not limited to, costs related to:
- hospitalization coverage for opioid-related illnesses and injuries
- clinic visit coverage for opioid-related illnesses and injuries
- prescription coverage for unnecessarily prescribed opioids
- prescription coverage for opioids obtained through false pretenses
- prescription coverage for pharmaceuticals prescribed to treat and manage opioid addiction
- coverage for emergency and other services related to opioid overdoses and opioid-related illnesses and injuries
- property claims related to opioid abuse and addiction (including theft and property damage)
- liability claims related to opioid abuse and addiction (including accident liability claims)
- coverage for surgeries related to opioid abuse and addiction
- coverage for hospice care related to opioid abuse and addiction
- increased workers’ compensation costs due to opioid abuse and addiction
- coverage for inpatient and outpatient mental health services related to opioid abuse
- coverage for treatment of opioid addiction
Opioid Multidistrict Litigation (MDL)
The Judicial Panel on Multidistrict Litigation (JPML) formed an Opioid MDL in the Northern District of Ohio on December 5, 2017. The MDL will manage discovery and pre-trial phases of federal opioid government, insurance company, and other non-individual opioid litigation. Federal insurance company cases filed before the establishment of the MDL will be transferred to the MDL court for this phase of the litigation. Federal cases commenced after the establishment of the MDL will be filed directly with the MDL court.
Contact our Pennsylvania Opioid Insurance Company Litigation Lawyers
Insurance companies may be entitled to recover compensation from prescription opioid manufacturers for excess costs incurred as a result of the opioid crisis. Feldman & Pinto, P.C., is a Philadelphia based personal injury firm concentrating their practice in pharmaceutical litigation and medical malpractice. We are part of a team of lawyers engaged in a fight to compensate insurance companies for damages caused by the opioid epidemic.
Please contact our Pennsylvania opioid insurance company litigation lawyers to discuss instituting opioid insurance company litigation.