The CSU-ERFSA Executive Committee unanimously approved the follow resolution calling for an investigation of the CalPERS Long-Term Care Program and relief from excessive increases in premium rates for policyholders:
A Resolution from the California State University Emeritus and Retired Faculty and Staff Association.
May 10, 2022
Whereas since its inception in 1995 the CalPERS Long Term Care Program was established to be a self-funded insurance project with original capital funding of $ 2.7 billion (see articles 21410 et seq. (Stats. 1991 c. 4 (A.B. 44)), and
Whereas the CalPERS Long Term Care Program traded on the recognition of a brand name venerated in the state of California, and
Whereas the CalPERS Long Term Care Program from its inception was designed to partner with no other insurance carriers, and
Whereas the CalPERS Long Term Care Program with this plan of organization has been mismanaged in its investment and fiduciary practices, resulting in demands for premium increases totaling 900% when other private insurance firms have required only an average of 150%, and
Whereas every demand for increased assessments forces a tighter squeeze on people who subscribed to a long-term insurance program only because they have strictly limited resources in the first place, and
Whereas the CalPERS Long Term Care Program suspended the program for new clients, and
Whereas because approximately 70% of the policyholders covered by the lawsuit opted to receive a return of all the premiums they had paid, there would be a result that after those sums were returned the remaining 30% of subscribers left would be responsible for the program’s revenue—thus making the program unsustainable, and
Whereas with the CalPERS’ subsequent decision to withdraw from the present stage of negotiations in the lawsuit, there is a threatened outcome that needy clients will get no assistance in their current time of need, and
Whereas the continued demand for increased revenue in the long-term care program, despite the shutting down of that program to new applicants, presents mounting evidence of fraud by a state agency, and
Whereas the entire history of the failure of the long-term care program shows the need for increased supervision of CalPERS by the state of California,
Be it resolved that:
Governor Newsom, the California State Senate, the California State Assembly, and the California Department of Insurance undertake indemnification of the losses of the insurance clients, as well as an inquiry into the causes and remedies for the failure of the CalPERS Long Term Care Program.