JPMorgan faces lawsuit over health benefits

JPMorgan Chase is facing a lawsuit filed in the United States District Court for the Southern District of New York alleging mismanagement of employee health benefits. The lawsuit accuses the bank of failing its employees by agreeing to overcharges in prescription drugs by the company’s pharmacy benefit manager (PBM), CVS Caremark, which sets the drug prices for JPMorgan Chase’s employee health plans. For instance, the multiple sclerosis drug teriflunomide was allegedly bought for $6,229, while it can be purchased for around $30 at retail pharmacies. The lawsuit argues that JPMorgan Chase has abandoned its “fiduciary responsibility” under the Employee Retirement Income Security Act (ERISA) by allowing these overcharges. “No prudent fiduciary would agree or allow for its plan and participants/beneficiaries pay a price that is more than two hundred times higher than the price available to any individual who just walks into a pharmacy and pays out-of-pocket, and five hundred sixty times higher than the price available with just a few clicks online,” the lawsuit states. JPMorgan Chase has declined to comment on the matter.