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Many plan sponsors have read about the lawsuit filed against Johnson & Johnson alleging that it breached its fiduciary duties with regard to the prescription drug component of its group health plan, causing participants to “overpay” for their prescriptions. Lewandowski v. Johnson & Johnson (Case No. 1:2024cv00671), filed February 5, 2024, in the federal district …
Continue reading “Why Establish a Fiduciary Committee for Welfare Benefit Plans?”
For some group health plan fiduciaries, there could be a storm brewing. Changes to the Employee Retirement Income Security Act of 1974 (“ERISA”), buried within the 5,593 pages of the Consolidated Appropriations Act, 2021 (“CAA”), create the possibility for a new set of potential plaintiffs in fiduciary litigation. The CAA amended ERISA Section 408(b)(2) to …
Like a 401(k) plan, a group health plan must comply with ERISA’s rule that prohibits a plan fiduciary from paying more than a reasonable amount for services provided to the plan. When a group health plan offers insured benefits, service providers may receive a commission from the insurance company instead of direct payment from the …
Continue reading “Using the New Group Health Plan Fee Disclosure Rules To Reduce Plan Costs”