On Monday Gov. Andrew Cuomo announced the New York Sate Department of Financial Services is taking action against opioid manufacturers, distributors and pharmacy benefit managers to secure $2 billion for New York consumers who have shouldered the cost of the ongoing opioid epidemic in the form of higher insurance premiums.
The governor said the drug companies knew what they were doing, calling it an industry-wide conspiracy that is as diabolical, as brazen, as obnoxious and as offensive as anything he’s ever seen.
DFS has determined that New York consumers have overpaid an estimated $2 billion in insurance premiums over the past 10 years.
It says the 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 and will also be holding hearings across the state to expose the problem to consumers and generate transparency with respect to the impact on the health insurance system.