25 Years Of Practice

MetLife Long-Term Care “Reduced-Pay At 65”

On February 20, 2020, United States District Court Judge Thomas M. Durkin entered an order granting final approval to a class action settlement negotiated by Goldenberg Schneider and its co-counsel on behalf of 4,362 long-term care policyholders nationwide. The lawsuit alleged that MetLife imposed large premium increases on policyholders after they turned 65 years old in violation of the “Reduced-Pay at 65” rider they purchased. The “Reduced-Pay at 65” rider permitted policyholders to pay higher premiums prior to turning age 65 in exchange for paying 50% of their pre-age 65 premium once they turn 65 years old. However, the lawsuit alleged that MetLife was not honoring the terms of the order and imposed substantial premium rate increases on insureds after they reached 65 years of age.

Under the settlement, MetLife is required to forbear collection of any premium beyond 50% of the pre-age 65 premium amount for all 4,362 class members. In other words, MetLife agreed to waive any right to increase premiums on these policyholders once those policyholders attain the age of 65. In addition,, MetLife is required to refund 30% of all increased post-age 65 premiums collected to the class members. Additionally, Settlement Class Members who reduced policy benefits to avoid a post-age 65 premium increase shall receive a refund equal to 30% of the amount by which the post-age 65 premium reflects an overcharge given the reduced benefit amount.

The case is Newman v. Metropolitan Life Ins. Co., N.D. Ill. No 1:16-CV-03530.

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