Health Plan Cost Control Suits Ramp Up as Pricing Data Revealed

Lawsuits alleging employers and health insurance companies shirked their duty to oversee costs are on the rise amid increased price transparency and public outcry against high medical expenses.

A lawsuit filed by a Johnson & Johnson employee in New Jersey federal court earlier this year argued the company violated its obligation to act in the best interest of workers under federal benefits law by overpaying its pharmacy benefit manager for generic specialty drugs available at lower cost elsewhere.

But others from the Kraft Heinz Co., to the Mayo Clinic, to Aetna Life Insurance Co. have also become parties ...