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The Fiduciary Obligation to Avoid 56,000% Markups on Rx

gottwals.substack.com · 1,275 words · saved by 1 readers

Imagine going to the pharmacy, filling your prescription, and trusting that your employer-sponsored health plan has negotiated a fair price for you. What if, instead, that same prescription was costing you hundreds—or even thousands—of times more than it should? That’s exactly what JPMorgan Chase & Co. is being accused of in a new class action lawsuit, Stern, Binder & Schmitt vs. JPMorgan Chase & Co. The lawsuit alleges “systematic mismanagement of JPMorgan’s prescription-drug benefits program”—sticking employees and their families with inflated costs. But here’s the bigger problem: JPMorgan isn’t alone. This is happening every day in employer-sponsored health plans because most large employers allow Wall Street-driven and private equity-backed brokers and the Big-3 PBMs to dictate health plan decisions—usually in ways that maximize the broker’s and PBM’s profits at the expense of plan members. It doesn’t have to be this way. Employers can take control of their benefits, but it require

The Fiduciary Obligation to Avoid 56,000% Markups on Rx Lessons from the Latest ERISA Fiduciary Suit vs. JPMorgan Craig Gottwals Mar 17, 2025 2 Share Imagine going to the pharmacy, filling your prescription, and trusting that your employer-sponsored health plan has negotiated a fair price for you. What if, instead, that same prescription was costing you hundreds—or even thousands—of times more than it should? That’s exactly what JPMorgan Chase & Co. is being accused of in a new class action lawsuit, Stern, Binder & Schmitt vs. JPMorgan Chase & Co . The lawsuit alleges “systematic mismanagement

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