Current and former employees are suing the financial services firm JPMorgan for allowing inflated drug prices through its partnership with pharmacy benefits manager (PBM) CVS Caremark. The plaintiffs claim that poor PBM oversight led to unnecessarily high prescription drug costs, thereby violating the best interests of employees under ERISA.
“One example in the lawsuit points to the plan’s purchase of the multiple sclerosis drug teriflunomide, which was allegedly bought at a price of $6,229, compared to about $30 at retail pharmacies.” [Emphasis added]
The plaintiffs contend that JPMorgan could have saved millions by selecting more cost-effective pricing options or a transparent “pass-through” PBM model. Instead, they argue that the bank’s failure to consider alternatives resulted in inflated drug costs and higher premiums for employees and their families.
The lawsuit is the latest in a series of legal actions taken by employees against employers for similarly mismanaging their pharmacy benefits, including Johnson & Johnson and Wells Fargo. (In January, a federal judge partially dismissed the lawsuit against J&J.)
Recurring stories like these underscore the importance of partnering with a pharmacy benefits administrator that looks out for the financial interests of you and your employees. With MedBen Rx, you can be confident that you’re paying the real price for prescription drugs, with no artificial markups or hidden PBM profits.
If you’re not currently using MedBen Rx, contact your broker or call MedBen for a free, no-obligation, evaluation.