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