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ARTICLE · 15 APRIL 2025

Excessive Fee Cases: Not Just For Retirement Plans Anymore

A recent wave of cases has attempted to apply the theory of liability for retirement plan excessive fee cases to health plans – specifically, arrangements with pharmacy benefit managers.

United StatesEmployment and HR

Highlights

  • A recent wave of cases has attempted to apply the theory of liability for retirement plan excessive fee cases to health plans – specifically, arrangements with pharmacy benefit managers.
  • Though the cases thus far have been dismissed for lack of standing, health plan sponsors should consider reviewing their prescription drug arrangements (particularly the associated costs) and documenting a prudent fiduciary process in selecting and monitoring the health plan's service providers.
  • This Holland & Knight alert examines how the application of such fees is playing out in various court cases.

As discussed by Holland & Knight attorneys in the Winter 2024 Benefits Law Journal and in alerts on July 20, 2020, and Sept. 22, 2022, plan sponsors and fiduciaries have seen lawsuits filed alleging that they paid excessive administrative and recordkeeping fees and, in turn, violated their fiduciary duties under the Employee Retirement Income Security

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