Johnson & Johnson Sued Over Drug Prices in Employee Health Plan

A Johnson & Johnson employee filed a proposed class action Monday saying the company mismanages its workers’ prescription drug benefits by drastically overpaying its pharmacy benefit manager for generic drugs that are widely available at lower cost.

Ann Lewandowski says Johnson & Johnson’s employee health plan pays its pharmacy benefit manager, Express Scripts Inc., unreasonable and inflated prices for dozens of generic specialty drugs. According to Lewandowski, the plan pays more than $10,000 for a 90-pill multiple sclerosis treatment that uninsured patients can purchase from retail pharmacies for as little as $40.

“No prudent fiduciary would agree to make its ...