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Southwest Virginia legislator targets opioid crisis

As a health care professional, state Del. Todd Pillion of Abingdon has a special perspective on the opioid epidemic that has ravaged the localities he represents in Virginia’s General Assembly.

Pillion, a pediatric dentist, has successfully sponsored key legislation to address the crisis. He represents the 4th House District, which includes Dickenson County and parts of Wise, Russell and Washington counties.

“Virginia has become a leader in passing not only legislation but regulations through the Board of Medicine and Dentistry,” Pillion said. “There’s no magic bullet – this epidemic isn’t going to go away no matter what we do. But we have seen improvements.”

During this year’s regular legislative session, the General Assembly passed three opioid-related bills introduced by Pillion, a Republican who was elected in 2014. Gov. Ralph Northam has signed the measures into law:

·         HB 1556 will add the opiate overdose reversal drug naloxone and other Schedule 5 drugs for which a prescription is required to Virginia’s Prescription Monitoring Program. This will allow the Virginia Department of Health to monitor whether prescribers and dispensers are following state regulations and to deter the illegitimate use of prescription drugs. By adding naloxone to the list, officials can track if it is being co-prescribed with opiates in order to prevent fatal overdoses.

·         HB 1157 will require the Department of Health to develop and implement a plan of action for substance-exposed infants in Virginia. The plan must support a “trauma-informed approach” to identifying and treating substance-exposed infants and their caregivers, explore how to improve screening of substance-using pregnant women, and use multidisciplinary approaches to intervention and service delivery during the prenatal period and following birth.

·         HB 1173. Under current law, physicians who prescribe opioids are not required to request information from Virginia’s Prescription Monitoring Program as long as the prescription does not exceed 14 days and is treatment for a surgical or invasive procedure. HB 1173 eliminates the exception for prescriptions related to surgical and invasive procedures to bypass the PMP.
The three new laws will take effect July 1.

Rural county accuses drug makers of fueling opioid epidemic

 

Tucked between news of budget meetings and beauty pageant winners published in The Dickenson Star’s 2017 “Year in Review” is a grim statistic: Dickenson County was first in the state and sixth in the nation in opioid overdose deaths per capita.

In Dickenson County, in the coalfields of Southwest Virginia bordering Kentucky, residents have been dying of prescription opioid overdoses in recent years at a rate of about 40 per 100,000 people — more than seven times the statewide rate.

The newspaper’s annual review is cited in the introduction of a lawsuit filed by Dickenson against 30 pharmaceutical manufacturers, distributors and providers including Purdue Pharma, Abbott Laboratories and CVS Health Co.

Represented by the Sanford Heisler Sharp law firm and The Cicala Law Firm, Dickenson is suing for $30 million in damages. The suit says the defendants deliberately increased the flow of opioids into the county, state and country.

The case is one of the latest examples of communities across the nation suing pharmaceutical companies and associated businesses and alleging that they had a role in creating the epidemic. In Virginia, the city of Alexandria is suing for $100 million while in neighboring Maryland, Montgomery and Prince George counties have also taken legal action.

Joanne Cicala, founder of the Cicala Law Firm, which has offices in Texas and New York, says those who are responsible for and profited from the epidemic must be held accountable for its costs.

“The opioid epidemic is not accidental. It is not a natural disaster; it is a man-made crisis,” Cicala said. “And worse — the companies that did this were not just seeking to build market share — they knew they were creating addicts.”

In more than 100 pages, the lawsuit tells the story of how Dickenson County — with a population of fewer than 16,000 residents spread out over 334 square miles — was drawn into a prescription opioid overdose epidemic that claimed more than 500 lives across the state in 2017.

Did manufacturers ‘push opioid as safe, effective drugs’?

As with any drug that enters the prescription market, the distribution process begins with manufacturers. In the case of the opioid epidemic, one of the manufacturers is Purdue Pharma, a company known for its best-selling opioid — OxyContin.

In Dickenson, the lawsuit claims, Purdue Pharma and other defendants recognized “the enormous financial possibilities associated with expanding the opioid market.” So they “rolled out a massive and concerted campaign to misrepresent the addictive qualities of their product, and to push opioids as safe, effective drugs for the treatment of chronic pain,” the suit alleges.

According to the lawsuit, the drug manufacturers took part in a “campaign of deception” rooted in a since-disavowed study by Dr. Russell Portenoy published in the Medical Journal, “Pain,” in 1958.

In the study, Portenoy claimed that opioids could be used for long periods of time “without any risk of addiction” to treat chronic pain unrelated to cancer. The study said patients in pain would not become addicted to opioids because their pain drowned out the euphoria associated with the drugs.

Within a decade, Portenoy was financed by at least a dozen pharmaceutical companies, most of which produced prescription opioids.

The lawsuit argues that Portenoy’s study — paired with the practice of spending millions of dollars on promotional activities that understated the risks of opioids — not only legitimized but normalized the prescribing of opioids in Dickenson and across the country.

In the case of OxyContin — Purdue’s time-released version of oxycodone — promotional materials given to physicians included this key sentence: “Delayed absorption as provided by OxyContin tablets is believed to reduce the abuse liability of a drug.”

The drug companies’ sales representatives marketed directly to physicians, ensuring that doctors would be advocates for certain drugs, the lawsuit said. As a result, it contended, the pharmaceutical manufacturers were able to insert their products directly into specific markets.

In 2014 alone, the manufacturing defendants named in the Dickenson lawsuit spent more than $168 million on pursuing branded opioid sales contracts with doctors, the lawsuit said.

Fifty-four years after publishing his study justifying the prescription of opioids, Portenoy acknowledged that he erred in understating the risks of addiction associated with such drugs.

“Did I teach about pain management, specifically about opioid therapy, in a way that reflects misinformation? Well, against the standards of 2012, I guess I did,” Portenoy said in an interview that year with The Wall Street Journal. “We didn’t know then what we know now.”

How pharmacy benefit managers influence drug prices

As explained in the lawsuit, pharmacy benefit managers, or PBMs, are the middleman between the manufacturers and the marketplace; they influence which drugs are used most frequently, set prices for pharmacies and control what drugs are covered by health insurance providers.

PBMs include Caremark, Express Scripts and OptumRX — all named as defendants in the lawsuit. These companies serve as gatekeepers through controlling lists known as “drug formularies” that identify prescription drugs with the greatest overall value.

PBMs and pharmaceutical companies negotiate financial arrangements, including rebates for preferred placement on drug formularies, the lawsuit said. It said manufacturers compete for spots on the list in order to ensure greater utilization of the drugs they make.

Not only do PBMs have the power to make opioids cheaper – they can make less addictive medications harder to acquire, the lawsuit said. For example, it said, United Healthcare places morphine on its lowest-cost coverage tier with no prior permission required; in contrast, Lyrica, a non-opioid drug prescribed for nerve pain, is on the most expensive tier, requiring patients to try other drugs first.

Not just a health crisis but an economic one


The impact of the opioid epidemic in Dickenson is multifaceted. While the county’s overdose rates are the most conspicuous consequence of the epidemic, the increased flow of opioids into the region has had a ripple effect on the county’s economy, health-care system and workforce.

In 2017, the U.S. Centers for Disease Control and Prevention identified Dickenson as one of eight Virginia counties that are vulnerable to the rapid dissemination of HIV and hepatitis C infections among people who inject drugs.

L. Christopher Plein, a professor of public administration at West Virginia University, said the opioid epidemic is a public health crisis, but it also has far-reaching economic consequences.

“Communities become severely stressed by having to respond and deal with this crisis, and they may lack the resources to provide treatment, engage law enforcement and provide recovery services,” Plein said. “These communities may not be as attractive to outside investors and businesses if they develop a reputation of being tied to the opioid epidemic.”

The lawsuit argues that the opioid epidemic has significantly and negatively impacted nearly every aspect of the county’s $26 million budget and the public services it provides, including health care, emergency medical services, social services, law enforcement and drug prevention, education and treatment.

Dickenson has had to buy opioid antagonists such as naloxone – medications that can reverse drug overdoses. Moreover, the county has lost tax revenues because of the opioid crisis, the lawsuit said.

For example, the drug epidemic has affected the job market and workforce in Dickenson. The Virginia Employment Commission reported last week that Dickenson’s unemployment rate in March was 6.6 percent — double the statewide rate. Dickenson had the fifth-highest jobless rate among Virginia’s 133 counties and cities.

Del. Todd Pillion, R-Abingdon, says these consequences can no longer be ignored.

“Dickenson County is on the tipping point of having an unemployable workforce,” Pillion said. “They have difficulty recruiting industry because the only articles in the news are talking about overdoses and opioids.”

Purdue responds: ‘No longer promoting opioids’

In response to the growing number of lawsuits brought against the company, Purdue Pharma announced in February that it would stop marketing opioid drugs to doctors.

“We have restructured and significantly reduced our commercial operation and will no longer be promoting opioids to prescribers,” the company said in a written statement.

Purdue officials said that they cut their sales staff in half in the week following the announcement and that the remaining staff would pivot to focus on other products.

Kevin Sharp, lead counsel for Dickenson County’s lawsuit, called the announcement a step in the right direction. But he said the damage already inflicted demands a more comprehensive response.

“There’s a lot more that has to be done to solve this problem,” Sharp said. “They have to remedy past harm. And the parties are going to have to work together to find out the best way to minimize – and end if possible – the harm that is being caused.”

Purdue Pharma has yet to file a response to the Dickenson County lawsuit but provided the following statement:

“We are deeply troubled by the prescription and illicit opioid abuse crisis, and we are dedicated to being part of the solution. As a company grounded in science, we must balance patient access to FDA-approved medicines with collaborative efforts to solve this public health challenge.

“Although our products account for less than 2 percent of the total opioid prescriptions, as a company, we’ve distributed the CDC Guideline for Prescribing Opioids for Chronic Pain, developed three of the first four FDA-approved opioid medications with abuse-deterrent properties and partner with law enforcement to ensure access to naloxone.”

Expanding treatment for opioid addiction

In April 2017, the Virginia Department of Medical Assistance Services launched the Addiction Recovery and Treatment Services program to help increase access to treatment for Virginians battling opioid addiction.

The ARTS program was established primarily to help ease the burden on hospital emergency departments in treating patients with opioid-related issues, particularly in rural areas like Dickenson County.

The program expands treatment to Medicaid recipients by combining traditional medicine with counseling and other support systems. It also offers training and financial incentives to providers to encourage participation among outpatient treatment centers, doctors and hospitals.

“Providers are responding to the critical need for addiction treatment,” said Dr. Katherine Neuhausen, chief medical officer for DMAS. “Today, more than 350 new organizations are providing these life-saving services to Virginia Medicaid members. The number of outpatient opioid treatment services has increased from six to 108, including 79 office-based opioid treatment programs combining medication with counseling and other essential supports.”

According to an evaluation by Virginia Commonwealth University’s Department of Health Behavior and Policy, the program has increased the number of Medicaid recipients receiving treatment for opioid addiction by more than 50 percent, and the number of opioid-related emergency hospital visits by Medicaid recipients declined by nearly one third.

 

Virginia may create ombudsman to help with student loans

Virginia legislators are seeking to mitigate the personal and economic consequences of their constituents’ student loan debt by creating a state-level ombudsman to troubleshoot problems and educate borrowers regarding college loans.

In 2017, more than 1 million Virginians owed more than $30 billion in student loan debt, state officials say. Nationally, student loan debt is more than $1.3 trillion and climbing.

“Virginians owe more on student loans than we do on credit cards or car loans, but only student loans lack consumer protections,” said Anna Scholl, executive director of Progress Virginia, a liberal advocacy group.

This week, the Senate and House each passed bills to create the Office of the Qualified Education Loan Ombudsman and establish a Borrower’s Bill of Rights. SB 394 passed the Senate unanimously on Monday; HB 1138 cleared the House, 94-5, on Tuesday.

Supporters say the ombudsman’s office would help college students secure loans and understand how to pay them off. They said the office also would establish a culture of transparency, fairness and open communication between loan providers and borrowers.

Besides reviewing and resolving borrower complaints, the ombudsman would educate loan borrowers about their rights and responsibilities and about potential problems such as late payments.

By December 2019, the ombudsman would develop a course for borrowers, half of whom are under 25.

“Too many student borrowers sign their names on the dotted line at only 18 or 19 years old without fully comprehending their rights and responsibilities associated with that debt, but also knowing that without those loans they would not be able to earn their degrees,” said Del. Maria “Cia” Price, D-Newport News, who sponsored HB 1138.

In addition, the Senate unanimously approved SB 362, which would require companies that handle the billing and other services on student loans to obtain a license from the State Corporation Commission.

Virginia is not the first jurisdiction to experiment with measures to protect student loan borrowers. Washington, D.C., established a student loan ombudsman and Borrower’s Bill of Rights a year ago.

The bipartisan approval of the legislation marks a win for Gov. Ralph Northam, who included the creation of a student loan ombudsman among his top priorities for the 2018 session.

Price also sponsored a bill that aimed to create a state agency to help Virginians refinance their student loan debt. HB 615 was killed on a 5-3 party-line vote in a House Appropriations subcommittee.

Nonpartisan initiative targets ‘legalized corruption’ In Virginia politics

Efforts to fight what some call “legalized corruption” in the Virginia General Assembly were announced Thursday by the Clean Virginia Project, a new nonpartisan initiative seeking to curb Dominion Energy’s financial influence on Virginia lawmakers.

The group called on lawmakers to refuse donations from Dominion Energy, the state’s largest electric utility, and offered to make political contributions to those who pledge to do so. The project’s organizers said they hope to curb the energy giant’s political influence and hold lawmakers accountable for “representing their constituents – not corporate interests.”

Delegates who sign the pledge would receive an annual political donation of $2,500 while senators would receive $5,000 — a fraction of what they might otherwise receive from Dominion.

Donating more than $11 million over the past decade to Democratic and Republican candidates alike, Dominion’s influence on the Virginia’s General Assembly is unparalleled by any other corporations. For comparison, Altria — one of the world’s largest producers and marketers of tobacco and headquartered in Henrico — donated less than $7 million over the same period of time.

Legislators from both parties, including Democratic Gov. Ralph Northam and House Speaker M. Kirkland Cox, R-Colonial Heights, received donations from Dominion throughout the 2017 election season. While Northam accepted more than $100,000 in campaign and inaugural donations from the company in 2017 alone, Cox has accepted donations totaling more than $220,000 between 1998 and 2017.

Dominion’s funding efforts are primarily derived from the corporation’s political action committee but often come together with donations by corporate executives like Tom Farrell, the company’s chairman, president and CEO, and Thomas Wohlfarth, the senior vice president of regulatory affairs.

Michael Bills, a Charlottesville-based investor and prominent Democratic donor, is the key funder behind the nonpartisan group, which is housed within former Democratic gubernatorial candidate Tom Perriello’s new political action committee, New Virginia Way.

The Clean Virginia Project is only one instance of a statewide attitude change toward the relationship between major corporations and lawmakers. It coincides with national efforts to encourage politicians to reject financial support from the energy industry.

This pushback has caused tension between Dominion officials and the group, with officials arguing that their company is being unfairly targeted for making campaign donations that are legal.

“Isn’t democracy great?” Dominion spokesman David Botkins said in an email to the Richmond Times-Dispatch. “People can do whatever they want to with their money — as long as it’s transparently disclosed on Virginia’s Public Access Project website, which we helped start in 1997 and have supported ever since.”

But Bills calls the initiative “common sense” that will level the playing field in politics.

“Virginians should no longer have to pick up the tab for backroom deals like the one Dominion and its allies are trying to ram through our legislature,” Bills said.

The announcement comes in the wake of Senate Bill 966, a bill that would repeal a 2015 rate freeze and provide Virginia customers with a refund on what Northam has called an “overcharging” for power rates.

In addition, SB 966 would require Dominion to reduce power rates by an additional $125 million as well as invest more than $1.1 billion in energy-efficiency projects and energy assistance to low-income communities throughout the next 10 years.

The text of the Clean Virginia Pledge reads:

“I will take no money or gifts from Dominion Energy or its Political Action Committees (PAC), lobbyists or executives; and will divest from any personal stocks or investments in Dominion Energy.”

As of Tuesday, Activate Virginia reported that 21 Democrats running for Congress this year have signed the pledge.

“Everyone will tell you that Dominion’s money doesn’t impact their vote, but given the fact that almost nobody says no to Dominion, I think that’s pretty obvious it has a large aggregate effect,” said freshman Del. Lee Carter, D-Manassas.

House committee unanimously kills ‘Netflix Tax’

A bill nicknamed the “Netflix tax” was unanimously defeated Monday in the House Finance Committee, ending the possibility of taxing streaming services in Virginia in 2019.

Introduced by Del. Vivian Watts, D-Fairfax, HB 1051 would have applied the state’s 5 percent communications sales and use tax not just to Netflix but to all online streaming services – among them Hulu, Spotify and HBO Go – that have skyrocketed in popularity, especially among millennials.

While the current communications tax applies to cable TV, satellite radio, landlines, cell phones and even pagers, streaming services are not included.

Watts said her bill was needed to modernize the state’s communications tax. “Obviously, the way we have continued to communicate has changed,” she said.

Watts told the committee that her bill would apply equal taxes to all forms of communication. “The best we can hope for is a fair tax structure,” she said.

According to the bill’s impact statement, the tax would generate nearly $8 million in revenue for the state – potentially allowing Virginia to become less dependent on other forms of taxes, like those collected through income and real estate levies.

The bill is not the first of its kind: Pennsylvania and Florida have passed laws that tax internet transactions and digital streaming services. But the tax has faced opposition from taxpayers, streaming services and industry trade groups.

The Finance Committee voted 22-0 against the bill. Watts voted against her own legislation, acknowledging that while the measure was not ready to be passed, she wanted to spur a larger conversation about Virginia’s tax structure.

Republicans said they were opposed taxing the heavily used services.

“Let’s be real clear in what we’re talking about here,” said Del. Tim Hugo, R-Fairfax, chairman of the House Republican Caucus. “This is a Netflix tax. This is a Hulu tax. If you’re under 30, this is a tax on how you get your information, how you watch your TV, how you consume everything every day.”

Representatives from T-Mobile, Verizon and Sling TV attended the meeting and spoke against the bill, while the Virginia Municipal League and the Virginia Association of Counties were in favor.

Neal Menkes of the Municipal League commented that he had “yet to hear a pager go off,” echoing Watts’ sentiments about the need to modernize tax law around a quickly changing communications landscape.