Fiduciary Responsibility and Hidden Costs

In this episode, Emma Fox and David Contorno explore the intertwined complexities of fiduciary responsibility and the hidden costs in healthcare. As employers face increasing scrutiny under ERISA and rising lawsuits, the conversation unpacks the critical roles of pharmacy benefit managers (PBMs) and healthcare carriers in shaping healthcare pricing. They discuss spread pricing, the importance of transparency, and the evolving responsibilities of employers and advisors. With insider insights and real-life examples, Emma and David offer a comprehensive look at how to navigate the delicate balance of fiduciary obligations while exposing systemic flaws that burden both employers and employees.TIMESTAMPS:[00:28] David and Emma discuss the increasing use of the term 'fiduciary' in healthcare[04:36] Employers are fiduciaries for their health plans but often unawareFully insured plans & fiduciary duties[11:21] PBMS -spread pricing, revenue, lack of transparency[24:52]Recent lawsuits against Johnson & Johnson and Wells Fargo for mismanaging drug costs[26:38] Fiduciary responsibilities under ERISA[33:26] Payment integrity departments in carriers often lack true integrity[37:44] Younger generations may drive change in healthcare systemsQUOTES:"You have to choose the right consultant, and finding the right consultant can be really hard because... there are a lot of people that you can find on LinkedIn who are saying all the right things, but that does not mean that they are doing the right things."- Emma Fox“I don't know, but I think transparency, they say that a spotlight is the best disinfectant or transparency is what really opens it up. And I think that's what we need to focus on. We need to focus on, most employers can't even access the information they need to be a fiduciary. So we need to really talk about transparency.” -David Contorno"If you are an employer listening to this, it is now crucial that you make a right selection... you have to be brave enough to say that being with a bucca, being with the CEO, increases my risk of violating my fiduciary responsibility." -Emma FoxSOCIAL MEDIA LINKSDavid ContornoLinkedIn: https://www.linkedin.com/in/dcontorno/Emma FoxLinkedIn: https://www.linkedin.com/in/emmamariefox/WEBSITEE-Powered Benefits: https://www.epoweredbenefits.com/Emma Fox: https://emmamariefox.com/Mixed & Edited by Next Day [email protected]