As readers may recall, we’ve been following the very long running shaggy dog story of the CalPERS long-term care policy debacle. The short version is that CalPERS violated the California statute that allowed it to offer long-term care plan by providing only an in-house product, as opposed to also selling third party plans, and then grossly underpricing it and offering an inflation protection option, which many policyholders chose. CalPERS also failed to disclose that this plan was independent of the rest of CalPERS, not backed by the state, nor supervised by any insurance regulator.
This fiasco generated a policyholder class action suit, where CalPERS agreed to a tentative settlement, which it recently aborted, in what looks like bad faith (see CalPERS Drops Long-Term Care Settlement, Which Was Designed to Suck More Money into Ponzi Scheme and Then Fail).
Below we’ve posted an e-mail from long-term care policyholder Lawrence Grossman, who has written some articles about this train wreck. Kaiser Health News and the New York Times are working on a story on long-term care policy problems, with CalPERS to feature prominently. They are interested in hearing from you!
From Lawrence Grossman:
I have been approached by Kaiser Health News/New York Times. I am sending out tomorrow the text below as an email to those I have been in contact with. Please circulate the information widely.
Further to my recent articles about the CalPERS long-term care insurance (LTC) crisis, I have been contacted by a reporter with Kaiser Health News which is partnering with The New York Times on a series of stories regarding long-term care costs.
The reporter wishes to speak with LTC policyholders like you about the CalPERS rate increases and the prospects of you now getting alternative LTC to CalPERS.
As the first step, here is the link to their “callout form” for you to contact them. They are running it in the New York Times.
Please fill out the form and I understand that they will get back to you for an interview about your experience.
This may be an extremely effective way to get the CalPERS story widely circulated and to build public support to address the LTC crisis. Therefore, I strongly urge you to complete the form. I have done so today in just a few minutes.
It would also be quite helpful if you would share the link with anyone else you know with CalPERS long-term care insurance.
For your information as well, May 9 I attended virtually the Superior Court session where CalPERS and the class action lawsuit attorneys and the judge determined that the case will go to trial, likely late this year or early next year. Any legal resolution is most likely yet a few years or more away in time.
For additional background, please see:
CalPERS’ Long-Term Care Fiasco: Private Burial to Hide Malfeasance, Failure to Implement Legislation September 2021 (Lawrence Grossman)
CalPERS Devises “Heads I Win, Tails You Lose” Gamble for Long-Term Care Policyholders in Settlement September 2021 (Lawrence Grossman)
CalPERS Drops Long-Term Care Settlement, Which Was Designed to Suck More Money into Ponzi Scheme and Then Fail May 2022 (Lawrence Grossman)