In a proposed class-action lawsuit filed July 30 in federal court in Minnesota, the plaintiffs alleged Wells Fargo overpays for prescription drugs, driving up costs for employees.
One example cited in court documents alleges that Wells Fargo plan members pay nearly $10,000 for a 90-day supply of multiple sclerosis drug fingolimod, though the lawsuit claims the drug is available without insurance at retail pharmacies for between $600 and $900 for a 90-day supply.
The plaintiffs allege Wells Fargo violated the Employee Retirement Income Security Act in its management of the employee health plan. The law requires employers to prudently manage employee health and retirement funds.
A spokesperson for Wells Fargo told Politico the company was aware of the lawsuit.
“Wells Fargo provides an array of benefits to our employees, which are provided to support the health of our employees and their families,” the spokesperson said.
The lawsuit is at least the second filed by employees alleging their employer is overpaying for drugs. In February, a Johnson & Johnson employee sued the pharmaceutical giant for allegedly mismanaging workers’ prescription drug benefits and violating its fiduciary duties under ERISA.
Johnson & Johnson has moved to dismiss the lawsuit, Bloomberg reported July 30. The company argued that because the employee who sued the company does not take any of the drugs mentioned in the lawsuit, she does not have standing to challenge their costs.
Employers have also challenged health plans, alleging they are mismanaging clients’ health benefit programs.
In 2023, Kraft Heinz alleged Aetna used its role as its third-party health plan administrator “to enrich itself to Kraft Heinz’s detriment” through undisclosed fees and processing medical and dental claims without human review. The lawsuit was settled out of court.
