By Bonnie Burns, Consultant to California Health Advocates
If you expressed an interest in a replacement policy for your CalPERS long-term care insurance, you may be wondering why you haven’t heard anything from the Settlement Administrator. The deadline to inform you about replacement coverage has been extended, but that information is not on the Settlement website and will not be posted there. In an email response to my inquiry about this matter I was informed that the deadline has been extended by 45 days, and that all parties had agreed to this extension. The new deadline is now December 6, 2021 to obtain replacement coverage.
The website will not be updated to include this 45 day extension, or any future information about replacement coverage. On or before December 13, 2021 policyholders who chose interest in replacement coverage by the September 22, 2021 deadline (Option 2 of Category A in the Settlement Notice) will be notified if the brokers were or were not able to secure replacement coverage for the Settlement members. The website will not be updated with this information and there will not be a press release by the Settlement Administrator or the attorneys for the class action.
If they were successful at finding replacement coverage, each policyholder will then be directed to more detailed information about that replacement coverage, its benefits, and how those benefits compare with their existing CalPERS coverage. That information will only be conveyed by mail to each individual policyholder. It will not be posted on the website. Each policyholder will then have until January 28, 2022 to decide if: a) they want to accept the replacement coverage, b) accept the full amount of premiums paid and surrender their CalPERS policy, or c) opt out of the Settlement and keep their CalPERS long-term care insurance.
If they were not successful at finding replacement coverage each policyholder will then have the option to accept a refund of the full amount of premiums paid and surrender their CalPERS policy, or opt out of the Settlement and keep their CalPERS long-term care insurance.
It’s important that each policyholder continue to pay the premiums for their CalPERS long-term care insurance until the settlement if finalized by the court next year. The current date for the court to consider a final settlement order is June 8, 2022.
If a policyholder member of the lawsuit wants to keep their CalPERS coverage they MUST opt out of the Settlement by January 28, 2022. If the Settlement if made final and a policyholder has not opted out they will automatically get a refund of their premium and lose their CalPERS long-term care insurance policy.
The final deadline to file a response with the Settlement Administrator for all categories of Settlement options is January 28, 2022. If you have any questions about the Settlement you can contact the Settlement Administrator at 1-866-217-8056 (Toll-Free)
The deadline to notify policyholders of a possible replacement policy has been extended. The brokers retained by Class Counsel to secure the potential replacement LTC policies an additional 45 days to determine whether a replacement policy can be obtained. As a result, the parties have agreed to extend certain deadlines to give the brokers additional time to explore various replacement policy options. The new deadline for the brokers to obtain a replacement policy is December 6, 2021. On or before December 13, 2021, you will be notified whether the brokers were successful in their efforts to secure a replacement policy. If they were, you will be directed to more detailed information about the policy, its benefits, and how those benefits compare to your current LTC policy with CalPERS. You will then have until January 28, 2022, to decide whether you want to: (a) accept the replacement policy, (b) surrender your CalPERS LTC Policy in exchange for a full refund of premiums, or (c) exclude yourself from the Settlement and keep your CalPERS LTC policy in place.
The settlement website will not be updated with the replacement policy information if one is found. Each policy holder who selected Option 2, will receive all information via the mail. There will also not be a press release but mailings will be sent to each settlement class member.
See our previous CalPERS updates:
- CalPERS Long Term Care Insurance Class Action Update #3 (Oct 2021)
- Update #2 on CalPERS Settlement & Premium Increase
- CalPERS Update: Premium Increases & Class Action Settlement Are Not Related
