Prospect of Fiduciary Duty as a Mitigating Factor for Healthcare Expenses

Employer complaints about rising health care costs have been ubiquitous for a number of years. Survey evidence, though, finds widespread employer shortcomings in the processes they use to select and monitor health plan service providers. The evidence provides a data-driven basis to assess whether employers meet their fiduciary obligations, leading to the conclusion that employers need to increase their diligence or face the possibility of significant liability. The increased diligence may also mitigate health care costs.