CalPERS Members Face Rate Hike for Long-Term Care
CalPERS last week began notifying 173,000 policyholders that long-term care insurance premiums will increase by an average 33.6%, the Sacramento Bee reports. CalPERS is the second-largest purchaser of long-term care insurance in the U.S.
The increased rates range from 5% for younger, healthier policyholders to 47% for older enrollees. The new rates apply to policyholders who purchased plans from 1995 to 2004. Members who enrolled after 2004 already are paying the increased rates.
Policyholders have 30 days to cancel coverage, remain with their current plan or select a less expensive plan with fewer benefits (Chan, Sacramento Bee, 4/11).
CalPERS in November 2006 voted to increase long-term care rates to help offset an estimated $600 million deficit over the next 50 to 60 years and establish a reserve (California Healthline, 11/15/06).