Alves v. Harvard Pilgrim Health Care, Inc.

MEMORANDUM AND ORDER

SARIS, District Judge.

I. INTRODUCTION

This case presents the interesting question of whether a sponsor of a health care benefit plan subject to the Employee Retirement Income Security Act [“ERISA”] may charge its members a “copayment” for certain prescription drugs that sometimes exceeds its own per-unit cost because of discounting arrangements with prescription drug providers. Plaintiffs James Alves and Hillel Stavis bring this proposed class action claiming that the defendants’ decision to charge copayments in excess of costs, their failure to disclose material…