Alaska Air Group Inc et al v. Anthem Inc et al

On January 30, 2024, Alaska Air Group Inc. and Alaska Airlines Inc. filed a class action lawsuit in the U.S. District Court for the Western District of Washington against Anthem Inc. and Express Scripts Inc. The plaintiffs allege that the defendants, as administrators of the airlines' employee health and welfare benefit plans, breached their fiduciary duties under ERISA. They claim that Anthem and Express Scripts failed to negotiate competitive prescription drug prices and instead imposed inflated costs for generic and brand-name medications, causing the plans and their participants to pay millions of dollars in excessive charges. The suit seeks to recover these alleged overpayments and to reform the plan management practices.

The case is currently pending; no final judgment or settlement has been reached.

Whether Anthem and Express Scripts breached their fiduciary duties under ERISA by mismanaging prescription drug benefits and causing the health plan to incur grossly excessive drug costs.

The lawsuit has drawn significant attention to the lack of transparency in pharmacy benefit manager (PBM) practices and the rising cost of prescription drugs. It is seen as a landmark challenge by a major employer against health insurance and PBM giants, potentially influencing future regulatory scrutiny and corporate accountability regarding employee benefit plan administration.