UBA 2024 Employee Benefits Benchmarking Report with 1706 Advisors

Johnson & Johnson Litigation Highlights

Executive Summary

The 2024 UBA Employee Benefits Benchmarking Trends Report, produced in association with 1706 Advisors, underscores the heightened risks for health plan fiduciaries post-CAA implementation. It stresses the importance of cost transparency and prudent management to avoid litigation similar to the recent case against Johnson & Johnson.

The Johnson & Johnson Litigation

The report details a federal lawsuit highlighting the fiduciary responsibilities mandated by ERISA. It emphasizes the requirement for diligent comparison of service providers and the securing of the lowest cost services, underpinning the litigation against JNJ for alleged excessive plan costs.

The Importance of Cost Transparency

With the mandate for health plans to post drug prices publicly, the report advises how this transparency can lead to scrutiny by plan participants and potentially, litigations if costs are deemed unreasonable compared to market rates.

Actionable Steps for Fiduciaries

The report concludes with crucial steps for fiduciaries to mitigate risks, such as establishing a dedicated committee, engaging consultants, reviewing PBM agreements, and documenting procedural prudence.

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