$2.7 billion settlement in CalPERS long-term care insurance lawsuit is canceled,” by Wes Venteicher, Sacramento Bee 



“An agreement in which CalPERS would have paid up to $2.7 billion to settle a lawsuit over the cost of its long-term care coverage has been scrapped, creating new uncertainty for tens of thousands of policyholders. … The settlement in the class-action lawsuit, reached last July, gave policyholders a choice: they could give up their plans and get a refund of all premiums they had paid — up to about $50,000 — or they could opt out of the settlement and keep their coverage, which got even more expensive last year. The agreement included the caveat that if more than 10% of policyholders chose to keep their plans, CalPERS could exit the deal. Last month, attorneys representing the plaintiffs announced 30% had decided to stay, and both sides had agreed the settlement was off.”


LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

What do those 30% know that the rest don’t? Maybe that even with the premium increases, LTCI coverage is still a very good deal, even CalPERS. A great deal compared to the bill of goods the federal government offers (Social Security, Medicare and Medicaid.) What have those programs done to shore up their solvency? Zilch.