Few Drop CalPERS Long-Term Care Coverage After Fee Hike
About 0.5% of policyholders dropped CalPERS long-term care insurance after the fund increased premiums by an average 33.6%, the Sacramento Bee reports. CalPERS officials had expected 1% to 3% of policyholders to cancel their coverage.
The overwhelming majority -- more than four out of five policyholders -- opted to retain their coverage and pay the higher premiums, according to Gregory Franklin, health benefits chief at CalPERS.
CalPERS reported that 7.8% of policyholders reduced their benefits to offset the premium increase and that 7% changed to policies that capped benefits at three or six years.
CalPERS is the nation's largest provider of long-term care group insurance (Chan, Sacramento Bee, 8/15).