By Bonnie Burns, Training & Policy Specialist
We have just learned that CalPERS has opted out of the class action settlement ending the current agreement that was scheduled to be heard on June 8th. This means that policyholders will not get any of the options that were described in the settlement.
Approximately 70% of class members had opted to end their CalPERS long term care insurance benefits in return for the refund of all premiums they had paid. This amount of members opting out of the CalPERS long term care program, and the refund of those premiums, would have made the CalPERS program unsustainable for the remaining policyholders. The settlement and its options are no longer available.
There are ongoing conversations among the parties to talk about an amended settlement, but the June court date to finalize the settlement has been removed from the court’s schedule. There will be a meeting between all of the parties which is currently scheduled for May 9, 2022. If an alternative settlement is reached the settlement administrator will notify policyholders of that alternative and any options policyholders have. In the meantime, policyholders should continue to pay their premiums to keep their coverage in force.
We will post any new information that we receive here.
See our previous CalPERS updates:
- CalPERS Update #5: Settlement Decision Deadline is January 28, 2022
- 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