Resources & Insights

Consolidated Appropriations Act: New Fiduciary Duty of Health Plans

April 4, 2024

Taylor Rogers
Executive Vice President, CCIG

Uncharted Territory: Health Plan Oversight

Much like the 401(k) space, health plans now face heightened scrutiny under the Consolidated Appropriations Act. A class action lawsuit has been filed against Johnson & Johnson (Lewandowski v. Johnson & Johnson) alleging a breach of fiduciary duty as it relates to their health plan. This is a pivotal moment for employers to reassess their approach to health plan management by mirroring the diligence applied to retirement benefits.


What’s Being Alleged?

The lawsuit alleges that J&J didn’t monitor the cost for prescriptions or certain medical care when employees need services. A few examples include:

Drug Class J&J Plan Price Cash Price
Multiple Sclerosis 10,240 $28-$78
HIV $1,629 $181
Leukemia $16,298 $169
Cancer $15,332 $1,246


Why It Matters

  • Legal and Financial Implications: The health insurance landscape is evolving. The Lewandowski v. Johnson & Johnson case underscores the legal risks and financial repercussions of neglecting fiduciary duties in health plan oversight.
  • Operational Excellence: Your role as stewards of your employees’ health benefits demands the same level of rigor and responsibility as managing their retirement savings.
  • Competitive Advantage: In an era where talent acquisition and retention are paramount, offering a well-managed health plan is a significant differentiator.

Lead The Way

As a leader there are very simple steps you can take to set a precedent for excellence in health plan management. This is not just about compliance; it’s about showcasing your commitment to your employees’ well-being and your organization’s financial health.

The Call to Action

We’re having detailed discussions and providing actionable items to help employers enhance their health plan oversight and mitigate risks. To schedule time, email or

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