CalPERS Aims To Reopen Long-Term Insurance Plan, Expand Eligibility
On Wednesday, a CalPERS committee approved a proposal to reopen its long-term care insurance program for new policyholders and expand the eligibility pool, the Sacramento Bee's "The State Worker" reports.
The proposal requires lawmaker approval.
In 2009, CalPERS stopped accepting applications for its long-term care plan as a way to cut losses in the program (Ortiz, "The State Worker," Sacramento Bee, 2/20).
Unlike its pension benefits program, CalPERS' long-term care program is not funded by taxpayers, and the pension fund must pay its own claims (California Healthline, 10/18/12).
Reopening the Program
CalPERS officials say that premium increases and the potential drawing power of a new, cheaper long-term care policy are some of the factors driving them to consider reopening the program.
The state pension fundÂ seeks to include tougher underwriting standards in the program and to open it to adult children of CalPERS beneficiaries.On Wednesday, Kathy Donneson -- a staff member at the state pension fund -- told the CalPERS board, "We will be getting healthy lives in these age groups, as well as even perhaps younger lives if we open it up to adult children," adding, "So, we can grow the (risk) pool" ("The State Worker," Sacramento Bee, 2/20). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.