Imagine you’ve been dutifully paying premiums for a long-term care (LTC) policy, a safety net for your future. But what if that net turned out to be full of holes, leaving you feeling vulnerable and frustrated? That’s the situation many CalPERS LTC policyholders found themselves in, leading to the Wedding v. CalPERS class action lawsuit.
Let’s unpack this case and see how it might affect you:
The Case in a Nutshell:
The Plaintiffs: Thousands of CalPERS LTC policyholders, alleging the program misled them about premium increases and policy benefits.
The Allegations: Misleading information about premium hikes, inadequate disclosure of financial risks, and potential violations of California insurance laws.
The Outcome: Two settlements were reached in 2023, offering policyholders two options: keep their policy with a cash payment and premium freeze, or surrender the policy for an 80% premium refund.
What Does This Mean for You?
If you were a CalPERS LTC policyholder before September 28, 2023, you’re part of the class action. You can choose one of the settlement options or opt-out entirely. Here’s a breakdown:
Keep your policy: Get a $1,000 cash payment and a premium freeze until October 2024. You’ll continue paying premiums after that.
Surrender your policy: Receive an 80% refund of all premiums paid (minus benefits received), effectively ending your coverage.
The Deadline: The final date to submit your claim or opt-out was September 28, 2023. However, there are still some options available if you missed the deadline.
Remember: This is complex legal matter. It’s crucial to review the settlement details carefully and consult an attorney if you have questions. Here are some resources to help you:
CalPERS LTC Class Action website: https://www.calpersltcclassaction.com/
California Health Advocates FAQ: https://calpersclassactionlawsuit.com/
CalPERS News Release: https://www.calpers.ca.gov/page/newsroom/calpers-news/2023/court-grants-preliminary-approval-to-second-settlement-in-calpers-long-term-care-class-action
Don’t let this situation leave you in the dark. Get informed, make an informed decision, and protect your future.
FAQs
1. Can I still get a refund if I missed the deadline?
There might be limited options for late claims depending on your circumstances. Contact the settlement administrator for guidance.
2. What happens if I keep my policy and premiums increase later?
After the freeze period ends, premiums can increase based on actuarial data and market conditions.
3. How will the settlement affect my future LTC needs?
Consider your individual circumstances and explore alternative LTC options if you surrender your policy.
4. Who can I talk to about my legal options?
Consult an attorney specializing in class action lawsuits for personalized legal advice.
5. Where can I find the latest updates on the case?
Check the CalPERS LTC Class Action website and CalPERS news releases for the most recent information.
6. Is there any financial assistance available for LTC?
Yes, various government and community programs offer financial assistance for LTC. Explore your options carefully.
This is just a starting point. Do your research, ask questions, and make the best decision for your own unique situation.
At some point, can we address CalPERS forcing retirees out-of-state to buy bloated “premium” health insurance (or, drop out and go through the Marketplace site) when in-state retirees still get offered reasonably-priced options? Almost 30 years of work and I have to get catastrophic-only insurance because CalPERS wants to screw over people who got the hell out of CA when they retired?