“Did CalPERS mislead policyholders on long-term care insurance? Trial begins on a $1.2 billion lawsuit,” Sacramento Bee

“A $1.2 billion lawsuit that could affect up to about 100,000 seniors who had CalPERS long-term care insurance plans goes to trial Monday. The class-action lawsuit claims the California Public Employees’ Retirement System violated insurance policy terms when it increased premiums by 85 percent in 2015 and 2016 after promising policyholders stability. ‘These people were completely, completely misled,’ said Michael Bidart, an attorney representing the plaintiffs. CalPERS contends it had the legal authority to raise the premiums. ‘We raised rates to sustain the plan and we believe they were properly increased in accordance with our contract,’ CalPERS General Counsel Matt Jacobs said in an email.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

Remember when CalPERS was supposed to be the answer to everything wrong with private LTCI?