A recent lawsuit has created a new wave of threats for group benefit plan sponsors that has broad-reaching implications. In the suit, a benefit plan member has sued their employer, Johnson & Johnson (J&J), alleging they breached their ERISA duty of prudence and the duty to act solely in the interest of the plan in selecting its PBM when other less costly arrangements were available (including pass-through options and specialty drug carve-out vendors). The alleged harm is the higher costs of drugs to the ERISA plan and to plan participants. This case is expected to be the first in a possible wave of similar litigation against employers alleging a breach of fiduciary duty due to the self-funded ERISA plan allegedly overpaying for services.
During this webinar, we will provide employers and plan sponsors with insights into the case, including:
