CalPERS To Inform Beneficiaries About Upcoming Rate Hikes
CalPERS is preparing to send letters next month to about 41,000 long-term care insurance policyholders prompting them to choose whether to accept a significant rate hike or switch to a less-inclusive plan, the Sacramento Business Journal reports (Robertson, Sacramento Business Journal, 3/11).
Last month, the CalPERS board voted 7-4 to immediately begin phasing in higher retiree contribution rates to account for the costs associated with longer life spans (California Healthline, 2/19).
Specifically, CalPERS will hike beneficiaries' rates 5% in 2014 and 85% over two years in 2015 and 2016.
Details of Letters
According to the Business Journal, CalPERS in April will mail letters to beneficiaries outlining their options.
Beneficiaries must decide by May 9 whether to pay the rate hike or accept less coverage.
CalPERS Deputy Executive Officer Ann Boynton said she does not know how beneficiaries will react to the changing contribution rates, noting, "I don't have any way to predict the significance of the fire storm" (Sacramento Business Journal, 3/11).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.