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… Transactions and Electronic Signatures Sixth Circuit Affirms ERISA Preemption of Tennessee PBM Law On April 7, 2026, a year following a decision in a lower court, the Sixth District Court of Appeals held in the case McKee Foods Corporation v. BFP Inc., that the Employee Retirement Income Security Act (ERISA) preempts Tennessee’s pharmacy benefit manager (PBM) laws requiring any-willing-provider (AWP) pharmacy network inclusion and prohibiting differential cost-sharing arrangements. For more information and background access our Alert from May 2025. More Compliance Resources Sign up for our in-depth Compliance Webinars Learn about our Compliance Consulting Services

… prescription drug pricing and pharmacy benefit manager (PBM) oversight. In Navarro v. Wells Fargo, a federal court dismissed claims alleging the company breached fiduciary duties by allowing excessive prescription drug pricing in its health plan. The court found plaintiffs lacked Article III standing because they failed to demonstrate a concrete financial injury. Conversely, Stern v. JPMorgan Chase will move forward after a court allowed claims alleging fiduciaries failed to prudently monitor PBM arrangements and allowed participants to pay inflated prices for generic drugs. These cases reinforce the importance for plan fiduciaries to maintain strong governance, actively monitor vendors, and document

… fiscal year 2026, focusing on issues that pose the greatest risk to plan participants and beneficiaries. Specific to health and welfare benefit plans, investigations will prioritize cybersecurity, access to mental health and substance use disorder benefits, surprise medical billing, and handling of employee contributions. EBSA also signaled a continued commitment to addressing abusive Multiple Employer Welfare Arrangements (MEWAs). US Department of Labor’s Employee Benefits Security Administration updates national enforcement projects for employee benefit plans | U.S. Department of Labor DOL Announces Delinquent Filer Program for MEWAs In a notice published in the Federal Register on December 31, 2025, the

… bill introduced in December 2025 would amend the Employee Retirement Income Security Act (ERISA) to designate pharmacy benefit managers (PBMs) as fiduciaries when they provide services to employer-sponsored health plans. Under the proposal, PBMs would be legally required to act in the best interests of plan sponsors and participants, similar to how ERISA already treats other service providers. Additionally, PBMs would be required to disclose their compensation, including direct and indirect fees, rebates, discounts, and price concessions. Proponents argue that this increased transparency and fiduciary accountability will help employers better assess whether PBM arrangements are reasonable and aligned with