The class action lawsuit ruling impacts roughly 100,000 policyholders who are on average 75 years old, and who have already experienced rate increases of about 400% on policies which CalPERS marketed as having a “guaranteed” level premium and/or premiums which were “designed not to increase”. The figure below displays actual policy rates and the initial policy rate along with inflation and long-term care trends. Yet just four months after the latest Court decision, on November 17, 2020, CalPERS voted to raise rates again on those policies by another 90%. In a decision issued in July 2020 that concluded the first phase of a class action lawsuit begun in 2013 - for the second time in two years - a judge of the Superior Court of California issued a ruling that CalPERS could not raise premiums on this group of LTC insurance policies that were issued decades ago. ![]() If CalPERS’ long-term care (LTC) program were a commercial insurance company, by now the courts and the California Department of Insurance would have declared it bankrupt and placed it into receivership. CalPERS’ refusal to recognize its failure has led to CalPERS’ extortion of these senior citizens to pretend to balance their books. It is dead, as it is substantively insolvent, yet it persists to operate and destroy the lives of some 100,000 elderly policyholders. ![]() The CalPERS long-term care insurance program is a zombie government entity.
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