CalPERS Sued Over Long Term Care Insurance Rate Increases

By |August 7, 2013|Categories: Benefits, Breaking News, Insurance Industry, Retirement Planning|Tags: , |

A lawsuit was brought against CalPERS, the California Public Employees’ Retirement System, on Tuesday over the agency’s recent Long Term Care Insurance rate increases.

Retirees Bring Class Action

The class action suit against CalPERS was filed in Los Angeles Superior Court on behalf of more than 100,000 California residents. The lawsuit claims the government agency deliberately deceived consumers who purchased Long Term Care Insurance policies by assuring the premium rates would remain “reasonably priced”.

CalPERS began selling Long Term Care Insurance policies in 1995. Last fall, premium rate increases of 85% were approved for implementation in 2015. CalPERS attributed the need for rate[…]