CalPERS Long-Term Care Update #8 – Background & Next Steps

CalPERS long-term care - courthouse

By Bonnie Burns, Training & Policy Specialist

This is an update to our previously published information about the proposed CalPERS Long-Term Care insurance class action settlement. If you lived in California on February 1, 2013 and had a Long-Term Care insurance policy from CalPERS with inflation protection benefits, and you were subjected to the 85% premium increase announced by CalPERS in 2013 and imposed in 2015 and 2016, you were entitled to participate in that proposed class action settlement announced in 2021.

The class action settlement that was previously agreed to by the parties was terminated because 30% of the class decided not to participate in the settlement options offered. As a result CalPERS withdrew from the settlement agreement. While the settlement agreement is no longer valid, the lawsuit still continues.

Policyholders who opted out of the settlement agreement are still participants in the lawsuit. Opting out of the settlement agreement didn’t cancel participation in the class. However if a policyholder cancels their policy or allows their coverage to lapse for nonpayment of premium it will change their status in the class and their ability to participate in any future recovery action or any future settlement or judgement.

The court has scheduled a jury trial in May 2023 if an amended settlement hasn’t been reached. The court scheduled a joint status conference for October 12, 2022, with a joint status report due to the court on October 5, 2022. In the meantime, the parties continue to attempt to reach agreement on an amended settlement agreement. If an amended settlement is reached the court will decide whether to approve it and cancel the jury trial.

Attorneys for the policyholders don’t have any other current information on their class action website. Any future current information will be posted on the website as it becomes available.

We will update our notices with any new information we receive as negotiations between the parties continue and that information becomes available to us. Read our previous CalPERS updates below:

Karen Joy Fletcher

Our blogger Karen Joy Fletcher is CHA’s Communications Director. With a Masters in Public Health from UC Berkeley, she is the online “public face” of the organization, provides technical expertise, writing and research on Medicare and other health care issues. She is responsible for digital content creation, management of CHA’s editorial calendar, and managing all aspects of CHA’s social media presence. She loves being a “communicator” and enjoys networking and collaborating with the passionate people and agencies in the health advocacy field. See her current articles.