The Coming Tsunami of Excessive Fee Litigation

For some group health plan fiduciaries, there could be a storm brewing. Changes to the Employee Retirement Income Security Act of 1974 (“ERISA”), buried within the 5,593 pages of the Consolidated Appropriations Act, 2021 (“CAA”), create the possibility for a new set of potential plaintiffs in fiduciary litigation.

“As group health plan sponsors consider the fee disclosures mandated by the CAA, attorneys representing plan participants will likely do so also, seeking to determine if plans have been paying excessive service fees and whether those excessive fees have been passed on to plan participants in the form of insurance premiums, service charges, or other costs.

Prudent group health plan sponsors would be wise to be proactive in addressing the compliance implications of the disclosure rules.”  MORE >>