ERISA Group Health Plan Fees and Expenses: Disclosure Obligations, Recent Cases, Challenges for 401(k) and 403(b) Plans

BARBRI

This CLE webinar will update ERISA counsel, plan sponsors, and third-party administrators on a potential new wave of challenges to ERISA group health plan administration. The panel will discuss the recent challenges to fees and expenses charged by health plan service providers, highlighting novel lawsuits and recent court decisions. The panel will provide strategies for handling these disputes along with steps to ensure compliance and minimize risks.

Description

Starting nearly 20 years ago, the ERISA world was swept by a wave of challenges to the fees and costs charged by third-party service providers to 401(k) and 403(b) plans. Those cases radically changed the way that recordkeepers, investment managers, and plan fiduciaries analyze these issues and have increased the potential litigation and financial risks associated with ERISA defined contribution retirement plans.

Now, a new litigation wave may be on its way--this time targeting fees and expenses charged to or built into group health plans. Several recent signs suggest a potential surge of challenges to the fees and costs associated with health plans. Among other things:

• The 2021 Consolidated Appropriations Act imposes new disclosure obligations on certain group health plan vendors to disclose fees and revenue from third parties;
• The same plaintiff's law firm that originated the tsunami of 401(k) fee cases has signaled that it is looking to file a new set of lawsuits challenging group health plan fees and expenses;
• New putative class actions have challenged indirect compensation received by third-party service providers to group health plans; and
• Plan sponsors are getting involved too; several unions and Fortune 500 companies have filed novel lawsuits against their third-party administrators, challenging their fees.

Collectively, these developments point to a new series of lawsuits between health plan sponsors, participants, and third-party administrators.

Speakers Andrew Holly, a partner and co-chair of the ERISA Litigation department at Dorsey & Whitney LLP, Ian Morrison, a partner at Seyfarth Shaw, and Kara Petteway Wheatley, a principal at Groom Law Group will examine these cases and trends. They will look at the issues and challenges that arise in litigation between plan participants, group health plans, and their service providers. They will also look at potential disputes between health plan sponsors and their third-party administrators. And they will offer practical advice about what sponsors and service providers can do to avoid litigation and, if necessary, win it.

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