D.C. is preparing to change how it finances part of its Medicaid program.
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Rather than relying exclusively on the city’s general fund, officials next year will reportedly begin using opioid settlement proceeds to help pay for recurring costs tied to providing health coverage to low-income residents.
According to budget documents reviewed by KFF Health News, D.C. plans to use roughly $7.8 million in opioid settlement money for Medicaid and addiction treatment programs already funded through its general budget. Critics argue the move would maintain existing spending levels rather than expand treatment and recovery services.
A coalition of more than 80 individuals and 30 organizations objected in a letter, saying the District plans to use opioid settlement funds to fill existing budget gaps.
The letter was addressed to Department of Behavioral Health Director Barbara Bazron, D.C. Council Health Committee Chair Christina Henderson and D.C. Attorney General Brian Schwalb.
The payments are part of a multibillion-dollar legal settlement with pharmaceutical companies and distributors and other companies accused of fueling the nation’s opioid crisis.
Over the next two decades, the agreements are expected to send more than $50 billion to governments nationwide. The District is projected to collect more than $100 million. The money is intended to help communities respond to the addiction epidemic and expand prevention, treatment and recovery services.
“We want to make sure that DBH is held to account,” said Queen Adesuyi, a partner at Reframe Health and Justice who advocates for community-based addiction services.
“And that they’re not allowed to misuse millions of dollars that are technically meant to be used to support overdose prevention,” she added.
According to KFF Health News, the Department of Behavioral Health said it will comply with all requirements governing the use of opioid settlement funds.
“We want to make sure that they don’t get away with supplanting funds, which is what we are concerned is happening,” Adesuyi said.
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