The lawyers involved in the settlement of the CalPERS Long-Term Care Program class action lawsuit have been unable to find a California-licensed insurance provider willing to provide a substitute Long-Term Care policy for those class members who chose Option 2 in the settlement agreement.

Option 2 would have allowed eligible policyholders to use their CalPERS LTC Program premium refunds to purchase a replacement LTC policy. Brokers working on behalf of the lawyers approached more than 90 insurance companies about the possibility of offering a replacement policy. However, all of these companies declined to offer such a policy.

As a result, CalPERS LTC Program members who initially chose Option 2 will have to elect by January 28, 2022 either Option 1 - surrendering their CalPERS LTC policy in exchange for a full refund of all premiums paid (less any benefits paid), or Option 3 - requesting exclusion from the Settlement and retaining your CalPERS LTC Policy.