1 00:00:03,520 --> 00:00:07,040 Speaker 1: Welcome to the Bloomberg Law Podcast. I'm June Grosso. Every 2 00:00:07,120 --> 00:00:09,680 Speaker 1: day we bring you insight and analysis into the most 3 00:00:09,720 --> 00:00:12,200 Speaker 1: important legal news of the day. You can find more 4 00:00:12,240 --> 00:00:16,160 Speaker 1: episodes of the Bloomberg Law Podcast on Apple Podcasts, SoundCloud, 5 00:00:16,280 --> 00:00:20,520 Speaker 1: and on Bloomberg dot com slash podcasts. The nationwide opioid 6 00:00:20,520 --> 00:00:24,560 Speaker 1: epidemic was tied to about fifty thousand deaths in seventeen. 7 00:00:25,000 --> 00:00:30,200 Speaker 1: The devastation of opioid addiction is acknowledged almost uncontested. President 8 00:00:30,240 --> 00:00:33,720 Speaker 1: Trump focused on the crisis in a weekly address last April. 9 00:00:34,080 --> 00:00:38,480 Speaker 1: Opioid abuse and addiction can impact anyone, and everyone knows 10 00:00:38,600 --> 00:00:42,319 Speaker 1: someone who's been impacted. That's why we call it the 11 00:00:42,320 --> 00:00:46,599 Speaker 1: crisis next door. More than fift hundred lawsuits have been 12 00:00:46,640 --> 00:00:53,600 Speaker 1: filed against manufacturers and distributors of opioids by state attorneys, general, cities, counties, hospitals, 13 00:00:53,840 --> 00:00:57,520 Speaker 1: other groups and individuals. A judge in Cleveland, Ohio is 14 00:00:57,560 --> 00:01:00,920 Speaker 1: handling what's called a multidistrict little game ation, which has 15 00:01:00,960 --> 00:01:05,600 Speaker 1: become incredibly complicated, raising a number of novel legal questions. 16 00:01:06,000 --> 00:01:09,280 Speaker 1: Health care attorney Harry Nelson joins me now he's written 17 00:01:09,319 --> 00:01:12,920 Speaker 1: a new book entitled The United States of opioids a 18 00:01:13,000 --> 00:01:16,959 Speaker 1: prescription for liberating a nation in pain? Harry, how much 19 00:01:17,080 --> 00:01:21,160 Speaker 1: is Big Farmer responsible for the opioid crisis? Big Farms 20 00:01:21,160 --> 00:01:24,000 Speaker 1: certainly was a culprit here. What I like to say 21 00:01:24,040 --> 00:01:27,640 Speaker 1: is that they probably were the equivalent to the spark 22 00:01:27,920 --> 00:01:30,520 Speaker 1: that lit the fire. But at the same time, there 23 00:01:30,520 --> 00:01:34,360 Speaker 1: were multiple points of system failure that drove this crisis. 24 00:01:34,480 --> 00:01:37,560 Speaker 1: So it's certainly Big Farm ups deserves to pay a 25 00:01:37,600 --> 00:01:40,720 Speaker 1: price for having been so irresponsible and so aggressive in 26 00:01:40,800 --> 00:01:44,360 Speaker 1: marketing these drugs even as people were dying at horrific rates. 27 00:01:44,400 --> 00:01:47,040 Speaker 1: But at the same time, the reason that it happened 28 00:01:47,200 --> 00:01:50,360 Speaker 1: was in the backdrop was a whole set of failures 29 00:01:50,400 --> 00:01:55,120 Speaker 1: in our training of physicians, in our government regulation, in 30 00:01:55,320 --> 00:01:58,120 Speaker 1: our health insurance system, and we have to look at 31 00:01:58,160 --> 00:02:01,320 Speaker 1: those also as responsible pieces of the puzzle. So other 32 00:02:01,360 --> 00:02:04,200 Speaker 1: than Big Farm, of the other health care actors who 33 00:02:04,240 --> 00:02:07,120 Speaker 1: have come in for a lot of criticism have been physicians. 34 00:02:07,160 --> 00:02:10,040 Speaker 1: A lot of people have said physicians just were blindly 35 00:02:10,160 --> 00:02:13,440 Speaker 1: over prescribing, that we had pill mills all over the country, 36 00:02:13,600 --> 00:02:17,000 Speaker 1: and there were certainly physicians examples of physicians who were 37 00:02:17,480 --> 00:02:21,560 Speaker 1: floppy in their prescribing practices, but more broadly, there's been 38 00:02:21,600 --> 00:02:25,400 Speaker 1: a failure on the part of our medical training system 39 00:02:25,440 --> 00:02:28,480 Speaker 1: and our health system to really ensure that physicians are 40 00:02:28,520 --> 00:02:32,520 Speaker 1: trained on treating pain and addiction. It's really a problem 41 00:02:32,560 --> 00:02:36,160 Speaker 1: that goes back to the early twentieth century when when 42 00:02:36,160 --> 00:02:39,680 Speaker 1: the government first began to crack down on opium and 43 00:02:39,760 --> 00:02:43,720 Speaker 1: heroin use, we basically trained a whole generation of physicians 44 00:02:43,760 --> 00:02:47,359 Speaker 1: not to treat pain. It was a massive crackdown because 45 00:02:47,480 --> 00:02:50,440 Speaker 1: so many people were becoming addicted. And then it took 46 00:02:50,440 --> 00:02:53,080 Speaker 1: about seventy years, but we forgot that and the pendulum 47 00:02:53,080 --> 00:02:56,080 Speaker 1: swung back to you know, worrying about pain surveys and 48 00:02:56,120 --> 00:02:58,359 Speaker 1: making sure that patients weren't in pain, and now it 49 00:02:58,480 --> 00:03:01,120 Speaker 1: swung back again. So I think that we should look 50 00:03:01,160 --> 00:03:04,240 Speaker 1: at the issues around physicians really as in large part 51 00:03:04,320 --> 00:03:07,880 Speaker 1: a structural issue around training, and then also an issue 52 00:03:07,880 --> 00:03:11,920 Speaker 1: about how insurance companies drive decisions. Insurance companies and the 53 00:03:11,960 --> 00:03:16,600 Speaker 1: pressure for low cost care has translated to pills. Right. 54 00:03:16,600 --> 00:03:19,000 Speaker 1: There are lots of solutions. We have a pain crisis 55 00:03:19,000 --> 00:03:22,760 Speaker 1: in this country, fifty million Americans complaining about pain, but 56 00:03:22,919 --> 00:03:25,680 Speaker 1: the answer that the insurance industry wants is to give 57 00:03:25,720 --> 00:03:30,200 Speaker 1: people pills, not to talk about physical therapy and chiropractic 58 00:03:30,280 --> 00:03:33,560 Speaker 1: and the whole laundry list of personal services that take 59 00:03:33,880 --> 00:03:37,320 Speaker 1: professionals and time and cost more than just handing somebody 60 00:03:37,320 --> 00:03:40,000 Speaker 1: a pill. And finally, I think that we need to 61 00:03:40,040 --> 00:03:41,840 Speaker 1: look at the role of government. Right it was the 62 00:03:41,880 --> 00:03:45,160 Speaker 1: government that started calling pain the fifth vital Sign. It 63 00:03:45,200 --> 00:03:48,760 Speaker 1: was the Joint Commission, which is responsible for Medicare accreditation, 64 00:03:49,160 --> 00:03:52,520 Speaker 1: which really pushed this idea that we needed to respond 65 00:03:52,520 --> 00:03:55,480 Speaker 1: to patients pain, which is an absolutely legitimate idea. But 66 00:03:55,520 --> 00:03:57,840 Speaker 1: the problem is that when we survey patients and hospitals 67 00:03:57,840 --> 00:04:00,280 Speaker 1: and asked you know, how bad is your pain, people, 68 00:04:00,320 --> 00:04:04,080 Speaker 1: a positivity bias causes most people to to say eights 69 00:04:04,080 --> 00:04:06,520 Speaker 1: and nine, and that that was part of the problem. 70 00:04:06,560 --> 00:04:09,640 Speaker 1: And more broadly, you know, the d e A has 71 00:04:09,680 --> 00:04:13,680 Speaker 1: been an obstacle to research on alternatives. The d e 72 00:04:13,760 --> 00:04:16,240 Speaker 1: A was asleep at the wheel as sent and all 73 00:04:16,320 --> 00:04:20,440 Speaker 1: flooded into the country as physicians stopped prescribing, and we've 74 00:04:20,440 --> 00:04:24,560 Speaker 1: seen the FDA utterly failed to police marketing by farmers. 75 00:04:24,640 --> 00:04:27,279 Speaker 1: So there's lots of points of blame to go around 76 00:04:27,279 --> 00:04:29,640 Speaker 1: our health system and places where we need to fix 77 00:04:29,680 --> 00:04:33,000 Speaker 1: things to put an end to the causes of this crisis. 78 00:04:33,360 --> 00:04:35,279 Speaker 1: You put the d e A at the top of 79 00:04:35,320 --> 00:04:38,800 Speaker 1: the list of government agencies that failed the country in 80 00:04:38,839 --> 00:04:42,359 Speaker 1: the opioid crisis. Why at the top? Well for me 81 00:04:42,480 --> 00:04:45,400 Speaker 1: that there's three pieces to the d A that I 82 00:04:45,480 --> 00:04:49,560 Speaker 1: just think should be troubling to most people. Number one was, 83 00:04:49,640 --> 00:04:51,880 Speaker 1: as I said, you know that the da starts off 84 00:04:52,000 --> 00:04:56,200 Speaker 1: as a very aggressive force of cracking down on physicians, 85 00:04:56,279 --> 00:04:58,720 Speaker 1: and it's not clear to me why. You know, we 86 00:04:58,760 --> 00:05:00,840 Speaker 1: have as a country made it to vision and this 87 00:05:00,880 --> 00:05:05,400 Speaker 1: was Supreme Supreme Court decision that medical practice and prescribing 88 00:05:05,520 --> 00:05:08,400 Speaker 1: is really an oversight issue for the States to decide 89 00:05:08,880 --> 00:05:11,960 Speaker 1: when what a doctor needs to do to prescribe appropriately. 90 00:05:12,240 --> 00:05:16,080 Speaker 1: But the d A stepped in very aggressively and frankly 91 00:05:16,240 --> 00:05:19,560 Speaker 1: terrorized physicians. And it's the insertion of the d e 92 00:05:19,640 --> 00:05:23,719 Speaker 1: A into the oversight of medicine has left many many 93 00:05:23,760 --> 00:05:26,480 Speaker 1: doctors afraid to prescribe and really created a crisis for 94 00:05:26,800 --> 00:05:30,120 Speaker 1: people in chronic pain. Number Two, when the response to 95 00:05:30,200 --> 00:05:33,479 Speaker 1: the crackdown on physicians by the d A was with 96 00:05:33,520 --> 00:05:37,520 Speaker 1: black car heroine and sent and all flooding into the country. Uh, 97 00:05:37,640 --> 00:05:40,600 Speaker 1: the d A was it was mind boggling, but somehow 98 00:05:40,680 --> 00:05:44,160 Speaker 1: it took them about three years to recognize that China 99 00:05:44,240 --> 00:05:48,360 Speaker 1: and Mexico, we're just importing massive amount of low cost 100 00:05:48,440 --> 00:05:50,640 Speaker 1: sent and all that was killing people that we're looking 101 00:05:50,640 --> 00:05:53,320 Speaker 1: for the DA to do anything, it should have been 102 00:05:53,400 --> 00:05:57,039 Speaker 1: to police our borders and to stop stop this stuff 103 00:05:57,080 --> 00:05:59,360 Speaker 1: from coming in. But it literally was the cent and 104 00:05:59,400 --> 00:06:03,000 Speaker 1: al started coming in, and it literally was not until 105 00:06:03,480 --> 00:06:07,320 Speaker 1: seen that the d A even began to think about 106 00:06:07,320 --> 00:06:09,800 Speaker 1: how to stop it. As recently as last year, you 107 00:06:09,839 --> 00:06:13,520 Speaker 1: could do a search on bi fentanyl and find websites 108 00:06:13,560 --> 00:06:18,000 Speaker 1: from China advertising on Google and freely mailing in packets 109 00:06:18,000 --> 00:06:20,479 Speaker 1: of fentanyl. And finally, and this is my third point 110 00:06:20,520 --> 00:06:23,080 Speaker 1: that I think we really need to re examine what 111 00:06:23,120 --> 00:06:26,080 Speaker 1: the DA is doing, is that the DA has been 112 00:06:26,760 --> 00:06:32,120 Speaker 1: obstructing research on alternative pain therapeutics. So when you look 113 00:06:32,160 --> 00:06:37,000 Speaker 1: at what's happening around cannabis and other alternative therapies, uh, 114 00:06:37,120 --> 00:06:41,800 Speaker 1: the DA has been absolutely obstructive. I'm contacted constantly by 115 00:06:42,120 --> 00:06:45,440 Speaker 1: universities that have researchers who want to research alternative pain 116 00:06:45,520 --> 00:06:49,680 Speaker 1: therapeutics like cannabis, and they are blocked because they're federally funded. 117 00:06:49,760 --> 00:06:52,040 Speaker 1: If you want an example, a very recent example of 118 00:06:52,040 --> 00:06:55,640 Speaker 1: how how difficult the DA has been. There were repeated 119 00:06:55,680 --> 00:06:59,200 Speaker 1: efforts by the hemp industry to say, look, we have 120 00:06:59,320 --> 00:07:03,640 Speaker 1: a non cannabis source of CBD and other therapeutics that 121 00:07:03,680 --> 00:07:06,599 Speaker 1: potentially could solve the pain problem. And the d A 122 00:07:06,600 --> 00:07:10,960 Speaker 1: absolutely refused to bend uh and fought vigorously, and it 123 00:07:11,000 --> 00:07:14,360 Speaker 1: took Congress passing a new farm bill last month to 124 00:07:14,480 --> 00:07:16,400 Speaker 1: change the status of CBD and to say to the 125 00:07:16,480 --> 00:07:19,800 Speaker 1: d e A, we're rescheduling. So the d A, from 126 00:07:19,840 --> 00:07:23,080 Speaker 1: my perspective, has been at multiple points of this crisis, 127 00:07:23,280 --> 00:07:26,320 Speaker 1: you know, dragging its feet and trying to do everything 128 00:07:26,320 --> 00:07:29,240 Speaker 1: it can to pursue an agenda that's not in line 129 00:07:29,280 --> 00:07:32,680 Speaker 1: with fixing the opioid crisis. Let's turn to the law now, 130 00:07:33,160 --> 00:07:38,120 Speaker 1: how has the opioid crisis shaped American law? I think 131 00:07:38,200 --> 00:07:42,920 Speaker 1: you can draw a straight line from the staggering rise 132 00:07:43,080 --> 00:07:46,720 Speaker 1: in overdose deaths in the late nineteen nineties, which really 133 00:07:46,840 --> 00:07:50,840 Speaker 1: drew an unprecedented level of attention, to the fact that 134 00:07:51,000 --> 00:07:55,400 Speaker 1: something like twenty million Americans are living with various substance 135 00:07:55,480 --> 00:07:58,400 Speaker 1: use disorders. You can draw a straight line between the 136 00:07:58,400 --> 00:08:02,600 Speaker 1: opioid crisis and the decision in two thousand eight past 137 00:08:03,120 --> 00:08:06,360 Speaker 1: Mental Health Parity, which President Bush, George W. Bush signed 138 00:08:06,360 --> 00:08:08,840 Speaker 1: into law, which was the first time that we said 139 00:08:09,360 --> 00:08:13,000 Speaker 1: we're not going to allow health insurance to discriminate between 140 00:08:13,000 --> 00:08:17,200 Speaker 1: medical surgical care and substance use disorder and other mental 141 00:08:17,200 --> 00:08:20,600 Speaker 1: health care. And likewise, when you look at what the 142 00:08:20,640 --> 00:08:24,840 Speaker 1: Obama administration and Congress put together in crafting the Affordable 143 00:08:24,880 --> 00:08:28,520 Speaker 1: Care Act, it's unmistakable that the opioid crisis was in 144 00:08:28,640 --> 00:08:32,560 Speaker 1: people's thoughts in the making the decision to include substance 145 00:08:32,640 --> 00:08:35,560 Speaker 1: use disorder treatment for the very first time as one 146 00:08:35,600 --> 00:08:38,600 Speaker 1: of the ten essential health benefits. Even when you look 147 00:08:38,679 --> 00:08:43,400 Speaker 1: at the fight to dismantle the Affordable Care Act and 148 00:08:43,440 --> 00:08:47,040 Speaker 1: the Trump administration's efforts to repeal, what we saw was 149 00:08:47,120 --> 00:08:51,760 Speaker 1: that Republican senators flipped over and voted to block the 150 00:08:51,840 --> 00:08:54,760 Speaker 1: rollback of the Medicaid program through the Affordable Care Act, 151 00:08:54,920 --> 00:08:59,200 Speaker 1: specifically because of the importance, the critical importance of getting 152 00:08:59,400 --> 00:09:02,439 Speaker 1: more acts us to care for people across the country 153 00:09:02,559 --> 00:09:05,599 Speaker 1: through the Medicaid program to deal with the opioid crisis. 154 00:09:05,679 --> 00:09:09,200 Speaker 1: So there's been a whole series of changes in how 155 00:09:09,280 --> 00:09:13,920 Speaker 1: we approach addiction and basically bringing addiction treatment into the 156 00:09:13,920 --> 00:09:17,640 Speaker 1: fold of healthcare, which it wasn't twenty years ago, and 157 00:09:17,679 --> 00:09:21,080 Speaker 1: I think that's directly attributable to the opioid crisis. There's 158 00:09:21,080 --> 00:09:23,680 Speaker 1: there's lots of other smaller examples, but that's the big one. 159 00:09:24,040 --> 00:09:27,480 Speaker 1: At the beginning I mentioned the multi district litigation. Which 160 00:09:27,520 --> 00:09:31,080 Speaker 1: side has the advantage in those lawsuits, the plaintiffs or 161 00:09:31,120 --> 00:09:36,200 Speaker 1: big pharma, as we saw with big Tobacco litigation not 162 00:09:36,320 --> 00:09:40,400 Speaker 1: too long ago and the NFL the concussion litigation. When 163 00:09:40,400 --> 00:09:44,160 Speaker 1: you have these mass torque class actions that hit on 164 00:09:44,679 --> 00:09:49,199 Speaker 1: core societal issues, big pharma has a problem. For many, 165 00:09:49,240 --> 00:09:54,160 Speaker 1: many years, companies like Produe Pharma were successful at settling 166 00:09:54,240 --> 00:10:00,200 Speaker 1: cases and avoiding discovery right avoiding depositions of drug any 167 00:10:00,200 --> 00:10:04,040 Speaker 1: executives and doctors, and calling attention to it. But the 168 00:10:04,040 --> 00:10:07,840 Speaker 1: bottom line is this case is a ticking time bomb 169 00:10:08,320 --> 00:10:13,200 Speaker 1: for big pharma and it's almost in inevitability that this 170 00:10:13,240 --> 00:10:15,640 Speaker 1: case will have to be settled. We're right now kind 171 00:10:15,679 --> 00:10:19,000 Speaker 1: of in the early stages of discovery in the multi 172 00:10:19,040 --> 00:10:22,680 Speaker 1: district litigation, where there are tens of millions of documents 173 00:10:22,720 --> 00:10:26,320 Speaker 1: filtering in through these you know, digital rooms, which are 174 00:10:26,320 --> 00:10:28,760 Speaker 1: going to take a long time to go through, and 175 00:10:28,840 --> 00:10:32,480 Speaker 1: it's likely that we're gonna have some depositions, probably another 176 00:10:32,640 --> 00:10:36,600 Speaker 1: year before we're on the horizon for a settlement. But 177 00:10:36,720 --> 00:10:39,480 Speaker 1: I think it's inevitable that Big Farmer will have no 178 00:10:39,600 --> 00:10:42,280 Speaker 1: choice but to but to settle this case. So there's 179 00:10:42,320 --> 00:10:46,559 Speaker 1: no possible wave. We would literally see one pharmaceutical company 180 00:10:46,600 --> 00:10:48,960 Speaker 1: after another go out of business. It's hard to imagine 181 00:10:49,000 --> 00:10:50,959 Speaker 1: how they couldn't find a jury that there could be 182 00:10:50,960 --> 00:10:52,560 Speaker 1: a journey in the United States that would not be 183 00:10:53,040 --> 00:10:57,359 Speaker 1: inclined to find them responsible. Thanks for being on Bloomberg Law. Harry. 184 00:10:57,400 --> 00:11:00,400 Speaker 1: That's Harry Nelson. His new book is called The United 185 00:11:00,440 --> 00:11:04,400 Speaker 1: States of Opioids, A Prescription for Liberating a Nation in Pain. 186 00:11:06,720 --> 00:11:09,679 Speaker 1: Thanks for listening to the Bloomberg Law Podcast. You can 187 00:11:09,720 --> 00:11:13,480 Speaker 1: subscribe and listen to the show on Apple Podcasts, SoundCloud, 188 00:11:13,559 --> 00:11:17,480 Speaker 1: and on Bloomberg dot com slash podcast. I'm June Brosso. 189 00:11:17,920 --> 00:11:19,240 Speaker 1: This is Bloomberg