July 30 (Reuters) - Wells Fargo & Co ( WFC ) was accused

in a lawsuit filed on Tuesday of mismanaging its employee health

insurance plan and forcing tens of thousands of U.S. employees

to overpay for prescription drugs.

The proposed class action filed in Minnesota federal court

by four ex-employees of Wells Fargo ( WFC ) claims the bank violated a

federal law requiring companies to prudently manage employee

health and retirement plans.

The former employees say that Wells Fargo's ( WFC ) health plan pays

inflated prices to pharmacy benefit managers (PBMs), who

negotiate with drugmakers, health insurance plans and pharmacies

to set prescription drug prices and decide which drugs will be

included on their so-called formularies - lists of drugs covered

by insurance.

The plan, for example, paid more than $69,000 for a tube of

cancer medication bexarotene that cost as little as $3,750 at

other pharmacies, and a markup of nearly 400% on generic

"specialty drugs" used to treat certain conditions, according to

Tuesday's lawsuit.

PBMs are facing increased government scrutiny over their

role in escalating costs of prescription drug.

Wells Fargo ( WFC ) did not immediately respond to a request for

comment.

The lawsuit is the latest to accuse employer-sponsored

health plans of failing to negotiate lower prices for drugs on

behalf of participants, as prescription drug costs continue to

rise sharply in the United States.

Johnson & Johnson is facing a proposed class action filed in

New Jersey federal court in February claiming the company's

mismanagement of a health plan cost workers millions of dollars

in overpayments on drugs. The company has moved to dismiss the

case, arguing that its plan has actually saved participants

money and that the named plaintiff lacks legal standing to sue.

Tuesday's lawsuit proposes a nationwide class of Wells Fargo ( WFC )

health plan participants and beneficiaries that could include

tens of thousands of people, and seeks unspecified damages and

statutory penalties.