CalPERS Long-Term Care Lawsuit Settlement Tuesday, August 24, 2021
From time to time, we have reported on a lawsuit by individuals who bought long-term care policies from CalPERS and were subsequently subject to large rate hikes.* Although UC is not part of CalPERS, because UC employees are state employees, they were allowed to buy these policies. We have also cautioned about long-term care policies in general; you are trusting that some insurance entity will treat you properly, perhaps ten or twenty years into the future or more, when you are likely to be incapacitated. It was hoped when CalPERS initially offered the policies, that - as a public organization it would be more reliable than a private insurance company - but subsequent events indicated that was a false expectation. In any case, the Sacramento Bee is carrying an article related to the settlement of the lawsuit noted above. The article is somewhat confusing concerning what individuals covered by the suit should do. So we just reproduce it as published below and are not offering advice (other than you should seek advice if you are covered by the lawsuit). From the State Worker blog of the Sacramento Bee:
CalPERS long-term care insurance settlement: how to avoid missing out on $35,000 checks Wes Venteicher 8-23-21 People with CalPERS long-term care insurance policies might have questions about two pieces of mail they received recently. The first informed them of another big rate hike — 90% over two years — coming to their plans, which help cover nursing home and inhome care costs. The second told them about the proposed settlement of a class-action lawsuit related to a previous round of rate hikes. CalPERS agreed to pay up to $2.7 billion in July to settle the lawsuit, which was filed in 2013 by policyholders who claimed CalPERS improperly raised rates on their plans. The plans at issue came with an “inflation protection” benefit and a promise that rates would remain stable. The settlement agreement gives 60,000 current policyholders a choice: UCLA Faculty Association Blog: 3rd Quarter 2021
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