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A Bold Legal Move Against High Drug Prices
In a daring legal twist, former Johnson & Johnson policy advocate Ann Lewandowski has taken a unique approach to combat spiraling drug costs. Rather than targeting the usual suspects, pharmacy benefit managers (PBMs), she filed a lawsuit against her employer, Johnson & Johnson, for using a PBM—Express Scripts—claiming it violated its duty to secure reasonable drug prices for employees.
The ERISA Factor: Uncovering Employer Obligations
Lewandowski’s lawsuit leans on updated interpretations of the Employee Retirement Income Security Act (ERISA). Thanks to recent additions in the 2021 appropriations bill, ERISA mandates prudent management not only of retirement but also health benefits. This nuanced angle shines a spotlight on the fiduciary duties of employers in managing workers' healthcare finances effectively.
Discontent with PBMs and Emerging Solutions
As PBMs face mounting scrutiny from the Federal Trade Commission and other entities, dissatisfaction looms large among those burdened by high prescription costs. This unease has prompted initiatives like Mark Cuban’s Cost Plus Drugs, aiming to foster transparency in pharmaceutical dealings and disrupt the status quo.
Future Trends: Reforming the Prescription Landscape
The scrutiny of PBMs may lead to profound shifts in how drug prices are managed. As legal actions like Lewandowski’s spotlight employer responsibilities under ERISA, more companies could be pushed to reevaluate their healthcare plans, thereby loosening the grip of PBMs.
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