CalPERS Long Term Care Insurance Lawsuit and Options
CalPERS Rate Increases And Proposed Settlement
Important Points for CalPERS LTC Policyholders:
CalPERS is no longer accepting long-term care insurance applications.
Premiums on new long-term care insurance plans are based on your current age and health.
Options for new plans may be limited due to health and age, especially for those who purchased coverage years ago.
For those age 77 to 84, your best replacement option may be a Hybrid plan with a premium that can never increase. The one time payment of approximately $100,000 – $250,000 assures you of the fixed cost. If no long term care is needed, there is a death benefit or annuity value similar to the amount paid for the policy. If long-term care is needed, the amount of money available can exceed the premium, often several times over, providing tremendous leverage of premium dollars.
CalPERS pays one amount for Skilled Nursing Facilities and 50% of that amount for care at Home or Assisted Living. Because Home Care and Assisted Living are preferred for most people at time of claim, this is a significant deficiency in the CalPERS plan, and you may have less benefits than you thought. Most current plans provide the same amount of benefits, no matter where care is received.
Complete this form to inquire about your options for new LTC Insurance:
These details must be received before we can recommend any options.
About The CalPERS Long Term Care Lawsuit
CalPERS has agreed to a proposed settlement in the Long-Term Care Program class action lawsuit. If you were a California Citizen on February 1, 2013 and you purchased a Long-Term Care insurance policy from CalPERS that included inflation protection benefits, and you were subjected to the 85% premium increase announced by CalPERS in 2013 and implemented in 2015 and 2016, you are entitled to take part in a proposed class action settlement.
The Settlement resolves a class action lawsuit for a subgroup of Class Members that included claims that CalPERS breached the insurance contract between Plaintiffs and other individuals who purchased a Long-Term Care Policy (either LTC1 or LTC2) who had automatic inflation protection benefits by raising premiums 85% for these Class Members. This increase announced by CalPERS in 2013 and implemented in 2015 and 2016. CalPERS denies all liability to Settlement Class Members, and asserts that it did not breach the terms of the contract of insurance and has entered into the Settlement for purposes of resolving this dispute. Read more…
CalPERS Rate Increases
In November 2020, the CalPERS board approved a rate increase on all Long-Term Care Program policies that will be phased in over two years. The first increase will be a 52% increase and will take effect no earlier than November 2021. If necessary, the second increase of up to 25% would take effect no earlier than the fall 2022. Read FAQs…