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Photo: John Moore/Getty Images

The ongoing opioid crisis cost $696 billion in 2018 and more than $2.5 trillion between 2015 and 2018, according to a new estimate by the White House Council of Economic Advisers.

Why it matters: Much of this cost is attributable to lives lost to opioids, but a good amount of it is borne by state and federal governments — and thus taxpayers. Meanwhile, opioid litigation settlement talks are homing in on payouts nowhere near this amount.

For context: $696 billion was 3.4% of GDP last year — an astronomical amount.

  • The estimate is much higher than a recent report by the Society of Actuaries because of the way CEA calculated the value of a life.
  • It also includes health care and substance abuse treatment costs, criminal justice costs and reduced productivity costs.
  • "Under CEA’s calculation, the majority of the costs are 'paid' by those who lost their lives," special advisor Jared Meyer said.

The big picture: The drug manufacturers and distributors being sued by thousands of communities struck a deal last week with the plaintiffs that kept the first federal opioids trial from beginning as scheduled. But a larger deal to settle all of the pending lawsuits has yet to be reached.

  • Some state attorneys general have announced a settlement framework worth $48 billion, but nothing is final.
  • Congress gave $6 billion in new opioid funding in 2018 and 2019, per CEA.

What they're saying: Andrew Kolodny of Brandeis University said that at least some of the plaintiffs have the resources to pay much more to help addressing the epidemic they've been accused of creating.

  • "The distributors and Johnson & Johnson have extremely deep pockets," he added. “Considering the cost of the mess they created and the estimate that comes from the White House Counsel of Economic Advisors, $48 billion is way too little.”

The bottom line: "We’re all paying for this," Kolodny said. "We’re paying an enormous price, both in terms of economic and human costs.”

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Hospital crisis deepens as holiday season nears.
  2. Vaccine: Moderna to file for FDA emergency use authorizationVaccinating rural America won't be easy — Being last in the vaccine queue is young people's next big COVID test.
  3. Politics: Bipartisan group of senators seeks stimulus dealChuck Grassley returns to Senate after recovering from COVID-19.
  4. Economy: Wall Street wonders how bad economy has to get for Congress to act.
  5. 🎧 Podcast: The state of play of the top vaccines.
2 hours ago - Politics & Policy

Bipartisan group of senators seeks coronavirus stimulus deal

Sens. Joe Manchin (D-W.V.) and Susan Collins (R-Maine). Photo: Drew Angerer/Getty Images

At least eight Republican and Democratic senators have formed an informal working group aimed at securing new coronavirus spending during the lame-duck session, a move favored by President-elect Biden, two sources familiar with the group tell Axios.

Why it matters: It may be the most significant bipartisan step toward COVID relief in months.

FCC chairman to depart in January

FCC Chairman Ajit Pai. Photo: Alex Wong/Getty Images

Ajit Pai will leave his post as chairman of the Federal Communications Commission on Jan. 20, the agency said today.

Why it matters: Pai's Inauguration Day departure is in keeping with agency tradition, and could set up the Biden administration with a 2-1 Democratic majority at the FCC if the Senate fails to confirm another Trump nominee during the lame-duck period.