Lawfirms “grooming” employees to sue their employers…

Lawfirms “grooming” employees to sue their employers…

I’ve been discreetly saying to employers for quite a while, that their fiduciary responsibilities that exist within the health insurance plan/program are substantial, and that law firms are preparing for employee-driven class action lawsuits against them.  They are even “grooming” employees and past employees to take part in these lawsuits.

Lockheed Martin is the latest example:

“If you did not fully understand the costs and increases in your Lockheed Martin plan when you signed up, don’t know how Lockheed Martin uses the funds it collects for premiums, feel you are not getting what you pay for and see your raise negatively impacted by the increased cost of your health-care premium, you may want to join this lawsuit investigation.”

The Consolidated Appropriations Act (CAA) has thrust fiduciary responsibility under ERISA back into the spotlight, and employers are in the crosshairs.  As official “plan sponsors”, employers have the responsibility to manage plan assets prudently, and to work solely in the best interest of plan members.

That could mean a lot of things.  The broader point is this, employers deduct monies from employee wages for the purposes of funding insurance premiums, or healthcare claims directly.  The company is also contributing a lot of money to health insurance/care as well.  And just like retirement funds, these healthcare/premium dollars are “co-mingled”.  It’s the employee’s money too!  HOW it gets managed and spent is coming under more and more scrutiny.

This is yet another aspect of High Plains Health Plan we’ve deeply considered to protect our clients.  Because of our proactive risk management approach, we protect our clients from any notion they are not “prudently” managing plan assets.  How?  We are utilizing multiple point solutions and contracts within HPHP that focus on high-quality care at the lowest possible price point.  Then we pass a good portion of the generated savings directly back to the plan members (employees) through highly-valuable benefits like $0 deductibles and copays, along with reduced premium withholdings.

From the article:  “Dramatic increases in health-care and prescription drug costs are eating up much of the nation’s paychecks.  Lockheed Martin and other large corporations pass those increases on to their employees, charging their workers about $1 Trillion a year nationally, according to numerous studies.  And it’s getting worse.  It is expected that 2024 will see the biggest health care cost jump in decades.”

While most are shifting more and more cost burden to employees, we are doing the opposite, and still saving our clients significant dollars.

Benefits are no longer just about buying insurance, or personal relationships.  There’s real risk looming for plan sponsors, and it’s just starting to ramp up.