Conseco long term care policyholders need to make a decision soon that will impact their long-term health care security.
Over the next two weeks, as part of a December class action settlement offer valued at $25 million to $30 million, up to 750,000 holders of Conseco long-term care, home health care and nursing home policies will have to decide whether to participate in a class action settlement agreement or opt out of it and pursue individual remedies.
Their choices include accepting a new Conseco policy, accepting a nonforfeiture benefit or holding on to their existing Conseco LTC policy.
In addition to the LTC options, policyholders can also purchase a new Conseco annuity contract or indexed universal life policy. The option is being offered to provide an “added benefit” to contract holders, says Jim Kochinski, vice president and chief counsel with Conseco’s supplemental health division. Contract holders can also pass the right to purchase the annuity or UL policy on to family members.
Policyholders have to meet a Feb. 4 postmark deadline in anticipation that a settlement in Philadelphia Court of Common Pleas (Case No. 03775) will be approved during a hearing on Feb. 13. The case, Irene Milkman v. American Travellers Life Insurance Company, ATL Life Insurance Company, and Conseco Senior Health Insurance Company, covers policyholders who purchased Conseco policies from 1975 to the present.
Bonnie Burns, director of consumer education with California Health Advocates in Scotts Valley, Calif., notes the importance of one provision: a class member who has cancelled a policy or let it lapse because of a premium increase can participate in the settlement.