Wells Fargo employees are suing for overpayment of prescription drugs by the company's health insurance plan

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Wells Fargo & Co was accused in a lawsuit filed Tuesday of mismanaging its employee health insurance program and forcing tens of thousands of American workers to overpay for prescription drugs.

A proposed class action filed in Minnesota federal court by four former Wells Fargo employees claims the bank violated a federal law requiring companies to proactively manage employee health and retirement plans.

Former employees say Wells Fargo's health plan pays high prices to pharmacy benefit managers (PBMs), which negotiate with drugmakers, health insurance plans and pharmacies to set prescription drug prices and decide which drugs will be included in so-called formularies. . of drugs covered by insurance.

The plan, for example, paid more than $69,000 for a tube of the cancer drug bexarotene that costs as little as $3,750 at other pharmacies, and as much as 400% more for “specialty drugs” used to treat certain conditions, according to Tuesday's lawsuit. .

PBMs are facing increased government scrutiny for their role in increasing prescription drug costs.

Wells Fargo did not immediately respond to a request for comment.

The lawsuit is the latest to accuse employer-sponsored health plans of failing to negotiate lower drug prices on behalf of participants, as prescription drug costs continue to rise sharply in the United States.

Johnson & Johnson is facing a proposed lawsuit filed in New Jersey federal court in February alleging the company's mismanagement of the health plan cost workers millions of dollars in drug overpayments. The company has moved to dismiss the lawsuit, saying that its plan saved participants' money and that the alleged plaintiff lacks legal standing to sue.

Tuesday's lawsuit proposes a nationwide class action against Wells Fargo health plan participants and beneficiaries that could include tens of thousands of people, and seek unspecified damages and statutory penalties.

—Daniel Wiessner, Reuters

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