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Joanne Roskey Quoted on Novel Johnson & Johnson ERISA Suit in Bloomberg Law

"Johnson & Johnson Case Signals Employee Drug Price Suits to Come"

Bloomberg Law

Joanne Roskey, a former Chief of the Division of Health Investigations in the Department of Labor's (DOL) Employee Benefits Security Administration (EBSA), Office of Enforcement, commented on a novel lawsuit from an employee suing Johnson & Johnson Inc. for allegedly mismanaging its health plans' drug benefits that appears a harbinger of litigation to come against ERISA health plan fiduciaries. "We've been anticipating that the fiduciaries of those plans that are hiring these third-party contractors are vulnerable to just the type of claims that Johnson & Johnson is facing here," Roskey said. The court will focus on whether the plan had a reasonable process for selecting and monitoring its drug benefits, she noted. "This is a prudence case, and it's going to focus on the processes that were used to make the decisions about pharmacy benefits for this plan," she acknowledged. She noted that health plan service providers, such as brokers and consultants, are required in some cases to provide information about the compensation they receive, but it is unclear how much information plan fiduciaries are actually getting.