Class Action Lawsuit on LTCi Premium Increases

Jun 10, 2019

  1. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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  2. Mr_Ed
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    Mr_Ed, Jun 11, 2019
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  3. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    Scott,
    I'm not sure if the Insurance Dept. is the issue.
    It's a question if Calpers broke their contract by increasing premiums.
    If their policy states that they had a right to increase premiums, then this lawsuit won't get off the ground.
     
  4. Mr_Ed
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    CalPERS is not an insurance company. CalPERS is not regulated by the California Department of Insurance. CalPERS is not regulated by California's Rate Stability Regulation. If you examine the CalPERS "policies" they never use the word "insurance". They use the phrase "long term care program" NOT "long-term care insurance." They are a self-funded group, they are NOT an actual insurance company.
     
    Mr_Ed, Jun 11, 2019
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  5. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    Understood Scott,
    But the end result is if their contract states that they are allowed to raise premiums.
    Technically insurance or not, there's a contract involved. Did they break the terms of their contract?
    It appears they raised premiums in the past and there was no civil lawsuit involved.
     
  6. Mr_Ed
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    agreed
     
    Mr_Ed, Jun 11, 2019
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  7. Mike Siegal
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    Mike Siegal Super Genius

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    1.2 Billion ???

    That should put a nice size 'DENT' in the California Retirement Pension!
     
  8. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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  9. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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  10. somarco
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    somarco GA Medicare Expert

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    Eavesdropping here. LTC not my gig but I did handle muni group health insurance in a prior life.

    Municipal self funded plans are generally exempt from ANY oversight.

    Not governed by ERISA.

    Not by the DOI.

    Pretty much free to do whatever they want with impunity.

    The remedy is to file bankruptcy.
    Chapter 9 - Bankruptcy Basics

    Although chapter 9 cases are rare, a filing by a large municipality can— like the 1994 filing by Orange County, California—involve many millions of dollars in municipal debt.

    Oh, and since this is not an insured plan they don't charge premiums . . .
     
    somarco, Aug 14, 2019
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