“Thousands of CalPERS members could get $30,000 or more in long-term care lawsuit settlement”

“Thousands of CalPERS members could get $30,000 or more in long-term care lawsuit settlement,” by Wes Venteicher, Sacramento Bee

Quote:

“CalPERS has agreed to pay up to $2.7 billion to settle a lawsuit over big price hikes the retirement system imposed on long-term care policyholders eight years ago, according to a Tuesday announcement. The proposed agreement, which requires a judge’s approval, would settle a class-action lawsuit policyholders filed in 2013. Several policyholders filed the lawsuit after receiving notices that their premiums would rise 85% in two increases in 2015 and 2016.”

 

 

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

The following “LTC Comment” is provided by Stephen D. Forman of LTC Associates from his “Weekly Reader”: “CA Cruising (for a Bruising): Attorneys expect nearly all 62,000 class members involved in the $2.7b CalPERS class action to accept their settlement offers, leaving just 55,000 policyholders behind. In fact, if less than 90% take the deal, the settlement could be off the table. Taking the deal means surrendering one’s policy for a cash buyout equal to premiums paid (on average between $35k – $50k). Given the parallels to the WA Cares Fund– which has not been publicly forthcoming about its underpricing blunders–this observer bets on a similar unraveling.” So does the undersigned.