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

[TexasTowelie]

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.

The settlement agreement presents affected policyholders — those who paid extra for an “inflation protection” benefit — with a choice. To receive a full refund of their premiums, they must give up their long-term care insurance plans. The policies, which CalPERS started selling in 1995, cover costs for nursing homes and in-home care.

Most policyholders who accept the settlement money would receive between about $35,000 and $50,000, with a minimum payment of $10,000, said Stuart Talley, an attorney representing the policyholders with Sacramento-based law firm Kershaw, Cook and Talley.

Read more: https://www.sacbee.com/news/politics-government/the-state-worker/article252753473.html

[keithbvadu2]

1. "To receive a full refund... must give up their long-term care insurance plans."

"To receive a full refund... must give up their long-term care insurance plans."

Contracts are meaningless.

[jimfields33]

2. What a scam. 30K?

If they take the settlement, 30K will give the person 4 months MAYBE in long term care.

[honobob]

3. I will not give up my CalPers policy

This was my reply on another forum for a person that thought they were getting a $400,000 refund. The refund is just the premiums that you have paid. No interest, nothing.


The first Webinar with the lawyers suing CalPers LTC ended about an hour ago. There are several more planned. She should have received a packet from them with registration info. I doubt she has a $400,000 refund coming. The Plan started in 1995 and and I joined in 2000 and have the lifetime and inflation adjusted benefit. My daily payout is $382 and my premium is $4,340 a year. My "refund" as of now is only $45,000.

If she wants to keep her policy she has to inform them by 12/13/2021 or they will just refund her premiums.

My premium has increased about 7% annually OVER 21 years. About what I expected. It annoyed me that the lawyers focused on the 85% increases in one lump instead of looking at it over time. If your mother elects to give her premiums to a possible other LTC provider her coverage will drop to THREE years and give her about HALF the benefit. WHOOP! So if I need 10 years of care worth about $1,300,000 CalPers will provide it. If I go with the possible new company I will get $66,000 per year for a total of $198,000 and in years 4-10 I am on my own! Can a deal get any worse? If my premium doubles I'll pay an extra $43,000 in premiums over the next 10 years but my first year in the SNF CalPers will pay $233,000 but the other plan is not inflation adjusted so I will only get $66,000 for 3 years. Geez if I am only in one year I will be 66+43= $109 CalPers 233-$109=$114,000 ahead.

I hope the settlement is rejected.

[gopiscrap]

4. welcome to DU