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CNA Long-Term Care Class Action – Employer FAQ

There are dozens of ways that employers can care for their employees, but one of the most impactful for their health and well-being toward and into retirement, regardless of age, is long-term care. Offering this benefit allows employers to support their employees’ preparation for the potential financial burden of long-term care, exercise their flexibility in available care when the time comes, and often provide lower premiums when employees are enrolled at younger ages, benefitting their overall investment.

If you have had group long-term care insurance for your employees from CNA between 1989 and 2016, your company and its employees could be impacted by this class-action lawsuit.

ABOUT THE LAWSUIT

What unlawful acts did CNA allegedly commit, leading to a lawsuit on behalf of their current and former insurance customers?

CNA’s internal documents reveal that their management planned from the beginning to enter the group long-term care (LTC) insurance market with premium rates much lower than what their actuaries told them they should be charging. CNA did so allegedly hoping to gain market share. Later, CNA imposed staggering premium increases expecting insureds would then reduce or drop their coverage, according to attorneys.

Government regulators require insurance companies to put a portion of what the insurers collect aside as reserves to pay claims as promised in their policies. If a policyholder drops their policy, the insurer is free to reduce their reserves accordingly and the funds can be used for anything including becoming part of their net profit, as is alleged here.

As part of its ploy, CNA told its customers that premiums would remain level and that if rates did increase, they would increase for everyone who bought group long-term care insurance. In reality, CNA has raised premiums in different amounts from state to state—and in some states, not at all.

In addition, CNA may have come to your organization wanting to switch employees’ premium payments from a payroll deduction to a direct bill. This switch was part of an intentional course of conduct designed by CNA to induce employees to drop their coverage. CNA allegedly manipulated employers to unwittingly partake in its scheme to “de-risk” its long-term care insurance business, and left employees without a crucial benefit to prepare for their futures.

Hagens Berman seeks to remedy CNA’s alleged financial scam and hold the company accountable for potentially deceiving employers and their employees.

How might your organization’s employees have been impacted by CNA's alleged actions? 
  • Employees paid increased premiums
  • Lived with reduced protection because they couldn’t afford the rate increase(s)
  • Not having any LTC protection because they dropped their coverage due to their inability to afford the rate increases, leaving them vulnerable to future LTC expenses
  • Dropping their coverage and are now paying LTC expenses (which should have been covered) out of their own pockets because they have no LTC insurance protection.
Why is this lawsuit important?

Insurance is a business of trust which is based on a binding legal agreement between the insurer and the insured. If an insurer betrays its customers’ trust to avoid its obligations to pay claims, the insurer is violating the law and subject to damages and corrective action.

In addition, with increased age, premiums increase, and it may be challenging for insureds to meet an insurer’s health requirements. When an individual drops coverage from an insurer in response to a rate increase, finding new coverage may be more expensive and potentially impossible if health has deteriorated.

Who filed this lawsuit?

Several individuals who purchased CNA’s group long-term care coverage filed this lawsuit, seeking to put an end to CNA's allegedly unlawful rate increases and recover damages for a proposed class.

What’s a class-action lawsuit?

A class-action lawsuit is a civil lawsuit brought on behalf of a group or “class” of people who have been harmed or wronged as a result of the defendants’ alleged conduct, with at least one individual or entity acting as a representative of that group. While the issues in a class-action lawsuit can vary, the issues in dispute are common to all class members.

STAY INFORMED 

What other information is available about this lawsuit?
  • On this website you’ll find:
    • Press releases
    • Order denying motion to dismiss the complaint
    • The complaint.
How do I stay informed on the case’s progress?

Fill out the form on this page to receive email updates about the litigation. We will notify you of important developments and potential deadlines.

ABOUT THE LAW FIRM

Who is the law firm that filed this lawsuit?

Hagens Berman is a global plaintiffs’ rights litigation law firm with a tenacious drive for achieving actual results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. The firm has secured more than $320 billion in settlements against insurance companies, Big Tobacco, the nation's largest pharmaceutical conglomerates and others, and we are currently pursuing similar litigation against other long-term care insurance providers. Your claims will be handled by attorneys experienced in consumer rights law and insurance plan litigation.

HOW CAN I HELP?

How can employers help the proposed class action against CNA?

If you have marketing materials from CNA related to its group long-term care insurance, or emails or letters from CNA related to its group long-term care insurance premium increases, we want to hear from you.

Please send us your documents via form upload, email or USPS: 

Click to upload documents

Email: [email protected]

Mail: 11 West Jefferson Street, Suite 1000, Phoenix, AZ85003

NO COST TO YOU

How much does it cost?

In no case will any class member ever be asked to pay any out-of-pocket sum. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the class's legal team.

If you think your experience would help this class-action lawsuit against CNA, or if you have questions about the case, please contact us by filling out the form. Certainly, there is no cost or fee associated with this.