A New Wave of ERISA Litigation Challenges Group Health Plan Fees and Expenses

Over the last 20 years, hundreds of putative class actions have been raised against sponsors and fiduciaries of 401(k) and 403(b) plans. Billions have been paid in settlement and judgments.

Now, the same attorneys who instigated these lawsuits have started investigating a new wave of ERISA lawsuits challenging the fees and expenses charged to group health plans. Already several lawsuits have been filed under ERISA against Fortune 500 companies alleging that group health plan fiduciaries breached their duties by failing to monitor fees and expenses. Thus far, the allegations focus on the fiduciaries’ alleged failure to properly negotiate prices for prescription drugs and related services. If these initial cases show some success, hundreds more could follow.

This webinar will address how employers can take steps to minimize the risk of being sued, how to protect your health plan from challenges, and if a lawsuit does arise, how to pursue winning strategies. It will also provide advice about how to manage your ERISA fiduciary responsibilities with respect to your group health plan and how to manage relationships with your third party administrators and vendors. Our panel will share their experiences with these lawsuits and how employers can manage fiduciary risk from the perspective of a fiduciary insurer.