$1.2 billion CalPERS lawsuit over long-term care gets go-ahead from judge

[TexasTowelie]

Public workers and retirees who sued CalPERS over an 85 percent rate increase to long-term care insurance plans could find out next week whether their lawsuit will move forward.

The lawsuit cleared a potential hurdle when a judge tentatively ruled that it shouldn’t be thrown out based on how much time passed before it was filed, and a decision on a second piece of the trial is expected Monday or Tuesday.

A few people who bought the plans filed a class-action lawsuit after the California Public Employees’ Retirement System notified them it planned to hike premiums in 2015 and 2016. The suit’s class includes up to about 100,000 people who faced the rate hikes. Plaintiffs claim the increases and associated costs amount to about $1.2 billion.

The people who filed the lawsuit said the rate hike violated contracts and promises in marketing materials for the plans. CalPERS said it had the authority to raise the rates and needed to do so to sustain the insurance plans.

Read more here: https://www.sacbee.com/news/politics-government/the-state-worker/article232052397.html

[emmaverybo]

1. Whoah. State has raided plan in way past. Means these worthless after maybe paying on for

years if you could not afford the huge jump.