Preliminary Settlement in Class Action Lawsuit Against CalPERS Long Term Care Affects 117,000 Policyholders

Lawyer or judge gavel with balance work with client or customer about agreement


July 20, 2021

For more information, contact: Bonnie Burns, Training & Policy Specialist, 831-438-6677,

Preliminary Settlement in Class Action Lawsuit Against CalPERS Long Term Care Affects 117,000 Policyholders

Sacramento, CA — A preliminary settlement agreement has been reached in a class action lawsuit against the CalPERS Long Term Care program involving 117,000 policyholders. Part of the agreement includes options that will be offered to policyholders, some of which may involve cash payments in return for giving up their policy.

“There may be multiple variations of options offered that will depend on whether a policyholder died or lapsed their policy following the premium increase that triggered the lawsuit, or made or didn’t make changes to their benefits as a result of the premium increase,” said Bonnie Burns, long-time long-term care advocate and expert with California Health Advocates. “Included in the lawsuit is a potential for the development of replacement coverage, but as of yet, there are no details about how that would work, what it would cost, or what company might be willing to offer such coverage.”

As this preliminary settlement proceeds, policyholders who receive notices about their options can contact their local Health Insurance and Counseling Program (HICAP) at 1-800-434-0222.  HICAP has trained volunteer counselors to help policyholders and their families.  HICAP is a state and federally funded program that is free to older Californians and is available in each county. 

#          #          #

California Health Advocates is an independent non-profit organization that provides accurate and timely Medicare and related health care coverage information, education, and policy advocacy. CHA provides community organizations and government agencies with up-to-date information, and in particular to the 24 local HICAPs that provide individual benefits counseling and community education directly to Medicare beneficiaries and their families. For more information, visit its website at

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.