Saturday, December 12, 2015

Did you get stuck with CalPERS long-term care insurance?

Normally, UC employees are not covered in any way by CalPERS. But when CalPERS offered long-term care insurance, UC employees - since they worked for the state - were eligible to take out policies. Some UC folks did, thinking that CalPERS insurance would continue to feature modest premiums. But then CalPERS jacked up the rates offering policy holders a choice of paying the jacked up rates, dropping their coverage (and thus losing what they had been paying for), or accepting a substantially cut down policy. Not surprisingly, litigation ensued. As the article below indicates, it continues its slow pace through the judicial system:

A lawsuit seeking to reverse hefty rate hikes for some CalPERS long-term care programs recently moved closer to receiving class-action status, strengthening prospects that a single case will cover up to 150,000 policyholders. A tentative decision by Judge Jane L. Johnson late last month certified the case as a class-action matter. Then, after lengthy debate in her Los Angeles County courtroom, she allowed both sides time to file written arguments ahead of her final decision. CalPERS lawyers have until Dec. 21 to file their arguments. Lawyers with three firms representing the plaintiffs must respond by Jan. 15. Johnson will issue a final decision in late January or early February, said Stuart Talley, one of the six attorneys suing CalPERS...

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