calpers

By Dale Kasler
dkasler@sacbee.com
Published: Tuesday, Aug. 6, 2013 – 1:52 pm
Last Modified: Tuesday, Aug. 6, 2013 – 4:27 pm

CalPERS was sued Tuesday over the big rate hikes it imposed on its long-term care insurance program, which covers stays in nursing homes.

The class-action suit was filed by a Los Angeles law firm on behalf of more than 100,000 CalPERS members who have purchased the coverage and now face big rate increases.

The lawsuit, filed in Los Angeles Superior Court, says policyholders were duped into thinking the rates would be fixed and “reasonably priced.”

CalPERS approved 85 percent rate hikes for most policyholders last fall, and policyholders were officially notified of the increases in February. The rate increases take effect in 2015.

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