The State Worker

Judge issues final decision on CalPERS’ request to toss insurance case

As Los Angeles court has issued a final ruling that allows litigation to move forward against CalPERS for allegedly mismanaging its long-term care insurance program and misleading policyholders. The decision by Judge Jane Johnson confirms an earlier tentative decision that rejected CalPERS’ request to have the case thrown out.

Johnson also declined to certify her ruling, which would have allowed CalPERS to appeal it immediately instead of waiting until the case concludes. CalPERS could still ask the apellate court to take up the decision, but without ceritification the higher court is much less likely to consider it.

Lawyers are seeking to expand the lawsuit to cover about 150,000 CalPERS members who purchased insurance between 1995 and 2004 to cover convalescent care, in-home living assistance and similar services. The plans The plans guaranteed inflation-adjusted payments for the life of the policyholders, many of whom believed their premiums would never be increased. CalPERS’ plan for a two-year, 85-percent primium increase angered many policyholders and triggered the lawsuit.

Ruling on Demurrer