Those of you who elected to accept the CalPERS LTC Program settlement and who expressed interest in using your settlement funds to purchase a replacement LTC policy offered through the attorneys may be wondering why you have not heard anything about the replacement policy yet.
The reason for that is that the deadline for the attorneys to arrange for such a replacement policy has been extended until December 6, 2021.
Bonnie Burns consultant to California Health Advocates reports that .....
[on] or before December 13, 2021 policyholders who chose interest in replacement coverage by the September 22, 2021 deadline (Option 2 of Category A in the Settlement Notice) will be notified if the brokers were or were not able to secure replacement coverage for the Settlement members. The website will not be updated with this information and there will not be a press release by the Settlement Administrator or the attorneys for the class action.
If they were successful at finding replacement coverage, each policyholder will then be directed to more detailed information about that replacement coverage, its benefits, and how those benefits compare with their existing CalPERS coverage. That information will only be conveyed by mail to each individual policyholder. It will not be posted on the website. Each policyholder will then have until January 28, 2022 to decide if: a) they want to accept the replacement coverage, b) accept the full amount of premiums paid and surrender their CalPERS policy, or c) opt out of the Settlement and keep their CalPERS long-term care insurance.
If they were not successful at finding replacement coverage each policyholder will then have the option to accept a refund of the full amount of premiums paid and surrender their CalPERS policy, or opt out of the Settlement and keep their CalPERS long-term care insurance.
It’s important that each policyholder continue to pay the premiums for their CalPERS long-term care insurance until the settlement if finalized by the court next year. The current date for the court to consider a final settlement order is June 8, 2022.
We remind CSU-ERFSA members that you may be able to obtain some form of LTC replacement coverage from our benefits partner AMBA. For more information about the LTC options available to CSU-ERFSA members through AMBA, please see https://www.csuerfsa.org/index.php/long-term-care-options-from-csu-erfsa