Class Action Lawsuit on LTCi Premium Increases

[Arthur Rudnick]

Did CalPERS mislead policyholders on long-term care insurance? Trial begins on a $1.2 billion lawsuit

Update 06/28

 

[Mr_Ed]

Did CalPERS mislead policyholders on long-term care insurance? Trial begins on a $1.2 billion lawsuit

FYI, CalPERS is not regulated by the California Dept. of Insurance and CalPERS is not regulated by California's LTC insurance Rate Stability Regulation.

Long Term Care Insurance Rate Increases California

 

[Arthur Rudnick]

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.

 

[Mr_Ed]

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.

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.

 

[Arthur Rudnick]

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.

 

[Mr_Ed]

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.

agreed

 

[Mike Siegal]

1.2 Billion ???

That should put a nice size 'DENT' in the California Retirement Pension!

 

[Arthur Rudnick]

CALpers Update.............


$1.2 billion CalPERS lawsuit over long-term care gets go-ahead from judge

 

[Arthur Rudnick]

https://www.sacbee.com/news/politics-government/the-state-worker/article233975602.html

CalPERS Faces Serious Risk in Class Action Lawsuit

 

[somarco]

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.

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 . . .