Press Release

Chelko Offers to Take on Co-Fiduciary Role

Issued by Chelko

Mar. 28, 2025

Since day one (now going on 25 years), Chelko has always conducted analysis and provided recommendations free of any conflicts of interest. This includes our unique policy of never accepting overrides or contingent rewards from vendors — unheard of among our competitors.

While we’ve always believed that differentiation was a big deal, the truth of the matter is, most prospective clients never seemed to care much. That is, until recent legislation (CAA) and related class action lawsuits (i.e., Lewandowski v. Johnson & Johnson) captured their attention.

With a brighter spotlight on fiduciary responsibilities related to health and welfare benefit plans, we’ve decided to take our commitment a step further.

Moving forward, Chelko is willing to serve as a co-fiduciary alongside our clients on the medical and drug plans, as well as ancillary benefits. To the best of our knowledge, we are the first health and welfare benefits consulting firm in the country to do so.

This fiduciary stance doesn’t actually change how we do our work. It just formalizes who we are and what we do. We’ve always acted as a fiduciary would — helping our clients steward their plans and manage them as if they were our own. Now we’re offering to make it official.

So, what brought us to this point? With apologies to Taylor Swift…

It’s them. They’re the problem. It’s them.

There’s been a lot of talk over the last few months about the J&J fiduciary lawsuit and how it represents a wake-up call for employers everywhere. We agree.

Somewhat ironically, a lot of the chatter has come from vendors and our competitors urging employers to take the necessary steps to serve as good health plan fiduciaries when, in reality, they should have spent more time looking in the mirror.

In several ways, brokers and consultants have played a leading role in the mess many employers find themselves. They want plan sponsors to fulfill fiduciary obligations, while they add to the bloat and profiteering within the market.

For example, just a couple weeks ago a PBM told us one of the nation’s largest benefit brokerage firms demanded a pass-through model that could generate additional revenue for the broker without their client knowing. True story — and one that is all too common.

We are not just a firm who helps you meet your fiduciary responsibilities. We will serve as one alongside you. If you are an employer interested in partnering to do what’s best for your plan and its members, consider giving us a call.

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