Lawsuits alleging that employers and health insurance companies failed to oversee costs are increasing as new transparency requirements reveal pricing disparities. These suits highlight growing discontent over high medical expenses among consumers and employees.
For instance, a Johnson & Johnson employee in New Jersey filed a lawsuit arguing that the company violated its fiduciary duty by overpaying its pharmacy benefit manager for generic specialty drugs that were available at lower prices elsewhere.
Similarly, other large entities, including Kraft Heinz Co., the Mayo Clinic, and Aetna Life Insurance Co., have faced legal challenges regarding their health plan cost management practices. These cases could signal a broader wave of lawsuits as employees gain access to more precise cost information under recent transparency laws.
To read more about these lawsuits and their implications, visit the complete article on Bloomberg Law.