The Hidden Risk Lurking in Your Group Health Plan (That No One’s Talking About)

You’ve audited your 401(k).

You’ve benchmarked comp.

But your health plan? That one’s still operating on trust.

And that trust might be putting your organization in legal and financial jeopardy.

Wait… a Risk Inside the Health Plan?

Yep. Most employers are sitting on a multi-million dollar benefit liability without realizing they now wear the fiduciary hat.

Under ERISA, once your group health plan goes self-funded (or even level-funded in many cases), you become the plan sponsor—which means you're legally responsible for plan performance, fees, and vendor accountability. Sound familiar? It’s the same burden that’s triggered dozens of 401(k) lawsuits over the past few years.

And now it’s coming for health plans.

Real Talk: Fiduciary Lawsuits Are Already Here

Recent lawsuits filed against household-name employers show a disturbing trend:

• Opaque PBM deals with hidden rebates and spread pricing

• “Preferred” networks that drive costs higher, not lower

• Undisclosed broker compensation baked into renewals

All while employers thought they were making the best decisions for their people.

Here’s the kicker: The Department of Labor is watching. And so are class-action attorneys.

The CFO & CHRO Dilemma

We get it. You’ve got a renewal to manage, a workforce to satisfy, and 32 other priorities in flight.

But ask yourself:

🔍 When was the last time you actually audited your plan’s claims, admin fees, and commissions?

If your answer is anything like:

• “We trust our carrier.”

• “Our broker says we're in great shape.”

• “I’m not sure where those fees show up.”

🚨 That’s your red flag.

The Path Forward: Treat Your Health Plan Like a Financial Asset

We recommend a fiduciary audit at least every 2–3 years—or sooner if:

• You’ve had large plan cost increases

• You’ve changed vendors recently

• You’re unclear how your partners are being paid

• You’re self-funded or considering a change in funding strategy

We’re not talking about blowing up your plan. We’re talking about governance.

What You Can Do This Week

✅ Step 1: Download our free [HR Fiduciary Checklist]

✅ Step 2: Schedule a 20-minute “Fiduciary Fast Review” with our team

✅ Step 3: Document your governance steps for board compliance

You don’t need to become an ERISA lawyer. You just need to act like one’s watching.

Because now… they are.

Let’s make sure you’re ready.

📥 Download the Checklist: https://www.linkedin.com/smart-links/AQHXHzI2grGGvA

📅 Book a Fast Review: Book time with Herb Catausan