Breaking Down Your Employer's Healthcare Responsibilities: A Fiduciary Deep Dive

Send us a text

Stepping into the often overlooked yet critically important realm of employer responsibilities, today's episode tackles the concept of fiduciary duty in employee health plans. What begins as an admittedly dry-sounding legal term quickly unfolds into a fascinating exploration of how your healthcare decisions are made—and who's accountable when things go wrong.

Did you know your employer has a legal obligation to act in your best interest when selecting and managing your health benefits? The landscape of fiduciary responsibility dramatically changed with the CARES Act, which heightened consequences for employers who fail to properly oversee your healthcare dollars. I break down the four essential pillars of proper fiduciary conduct: serving participants' interests, managing plan assets responsibly, acting prudently through documented decision-making, and diligently selecting service providers.

The stakes couldn't be higher, as demonstrated by recent high-profile lawsuits where employees of corporate giants like JPMorgan Chase and Johnson & Johnson took legal action against their own employers for alleged fiduciary breaches. These cases specifically targeted how companies selected and monitored pharmacy benefit managers—an industry where just three players control over 80% of the market. I share a personal anecdote about being offered a Costa Rica trip by a pharmacy benefit manager (which I declined) to illustrate the conflicts of interest that can compromise your healthcare. Whether you're a CFO, an HR director, or an employee wondering why money keeps coming out of your paycheck each month, understanding fiduciary duty empowers you to ask better questions and demand more transparency. Ready to find out if your company is making healthcare decisions that truly serve your interests?

Music by Alex Lambert.

Contact Justin via text 740-525-5259 or via email [email protected]

I welcome the opportunity to hear your feedback from this episode!

Thanks again to my musically gifted friend Alex Lambert for the music. Also thanks to Kevin Asehan for the edits.