CalPERS Long Term Care

This update is provided by Harry Culotta,  VCCCDRA Past President:

You may recall that CalPERS was sued in 2013 over the 85% premium rate increase imposed on its long-term care policyholders. The case has been bouncing around Los Angeles County Superior Court for the last seven years, but there is some recent information that suggests it may conclude within the next year.

On July 29, 2020 Judge William F. Highberger issued a ruling that Phase 3 of the trial may begin on March 29, 2021 with a jury trial. Phases 1 and 2 were trials by judge, in which the court ruled on various motions by the plaintiffs and defendant to interpret policy language or to determine if additional defendants should be named. As reported by the Retired Employees Association of Ventura County (REAVC) in its July-August 2020 newsletter, the judge ruled on July 6 that the State of California is also a named defendant in the case.

Between now and March 29, 2021 the parties are encouraged to reach a negotiated settlement.  Naming the State of California as a defendant may improve the likelihood of a negotiated settlement.  If the parties are unable to settle by March 29, 2021, a jury will be seated to hear the case, which may last up to five weeks, unless the trial is further postponed.
A link to Judge Highberger’s July 29, 2020 ruling is displayed below.
A link to the Retired Employees Association of Ventura County’s July-August 2020 newsletter is displayed below.
Please check this page for updates on the status of the CalPERS lawsuit.
Harry