The recent dismissal of an employee-led class action lawsuit against Johnson & Johnson (J&J), which alleged mismanagement of the health plan’s prescription drug benefit, might give health plan sponsors a false sense of security. Some may assume this means they won’t be held responsible for overseeing their pharmacy benefit managers (PBMs), but that is a dangerous misconception.
This case was dismissed on procedural grounds, not on its merits. Nothing in the court’s ruling reduces or eliminates the fiduciary obligations that health plan sponsors must uphold under ERISA. As a benefits adviser, it has never been more critical to educate your employer clients on their fiduciary responsibilities, including:
