A new wave of labor litigation is hitting federal courts, spotlighting the pressing need for Congressional action to enhance employer accountability regarding health-care costs. Major companies like Johnson & Johnson, the Mayo Clinic, and Wells Fargo are facing class-action lawsuits from employees who claim mismanagement of health insurance benefits under the Employee Retirement Income Security Act (ERISA). These cases highlight the growing concern over rising health-care costs, which are pushing employees to bear more financial burdens.
As employers grapple with escalating health-care expenses that threaten their competitiveness and ability to offer attractive wages, recent legislative efforts, including the bipartisan Lower Costs, More Transparency Act, seek to improve data transparency and clarify fiduciary responsibilities within the health-care system. However, challenges in obtaining critical spending data still persist.
TexHealth President Jim Rodriguez emphasizes the urgency of these issues, stating, “Healthcare is mirroring the rest of the economy and becoming increasingly unaffordable for the average person. Even with employers covering 50% of health insurance, access to coverage is slipping out of reach, and visiting a doctor is also becoming far too costly. While some believe technology might help alleviate these rising costs in coverage and service, it is not a complete solution. The insurance companies are now charging the same copay for a doctors visit either in person on via telemedicine.
Action is needed, and for me, the top priority should be transparency. If doctors, hospitals, insurance carriers and pharmacies are required to publish their rates, everyone would be able to see what the costs are and choose accordingly. Some may say that is impossible but with today’s technology, that argument is becoming less convincing. If we can land a rocket back into its launcher we can certainly publish all rates for services, coverages and medications. This would foster genuine competition, allowing new players to enter the market and offer services, coverage, or products that can compete with the older, more expensive options. While I recognize there are other potential solutions, this is one change I would like to see personally.”