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CalPERS Update #5: Settlement Decision Deadline is January 28, 2022

California Health Advocates > Long-Term Care > CalPERS Update #5: Settlement Decision Deadline is January 28, 2022

Posted by Karen Joy Fletcher on January 3, 2022

sand running through hourglass

By Bonnie Burns, Consultant to California Health Advocates

CalPERS policyholders who chose the option of replacement coverage in the Wedding Class Action lawsuit have been notified by mail that replacement coverage was not found.  As a result those policyholders MUST make a decision about whether to accept the return of premiums they’ve paid and cancel their CalPERS policy, or opt out of the settlement and keep their CalPERS long term care coverage. Policyholders must also continue to pay their premiums until the settlement is given final approval by the judge.

The Election form sent by mail to CalPERS policyholders MUST be completed and returned with a postmark no later than January 28, 2022.  If you fail to return the form you will automatically receive a full refund of premiums paid if the judge orders final approval of the settlement in the next hearing. That hearing is currently scheduled for June 8, 2022 at 10:00 a.m. in Department 10 at the Superior Court of California for the County of Los Angeles, located at 312 N. Spring St., Los Angeles, 90012.

It is important to understand that while the settlement is not yet final, decisions about your coverage must be made and the Election form returned before the court’s final decision is made.  The amount of premium paid referenced in the letter you received will be increased by premiums you pay until the final settlement date. No one knows if CalPERS will continue to participate in the settlement, or decide to withdraw from it. That action will not be known for several months and will affect the court’s decision. 

It’s also important to understand that you have the right as a policyholder to ask CalPERS to reduce any of your benefits in return for a lower premium at any time. You are not restricted to the benefit reductions CalPERS might have sent you as a result of the current 57% premium increase, or that you receive with the additional 25% increase that may be imposed later this year. You can tailor your benefits to your own needs and your ability to pay the resulting premium at any time.

We will update this information as we receive it.

See our previous CalPERS updates:

  • CalPERS Long Term Care Update #4: Replacement Coverage Deadline Extended
  • 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

Filed Under: Long-Term Care

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About 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.

Related Posts

  • CalPERS Update #11: CalPERS to Offer 2nd Settlement in Class Action Lawsuit
  • CalPERS Update #10: Next Steps & Who Oversees CalPERS Anyway?
  • CalPERS Update #9: Did You Receive a Letter About Past Due Premiums?
  • CalPERS Long-Term Care Update #8 – Background & Next Steps

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