Long-Term Care Insurance Premium Increase Approved
CalPERS this week approved an average 33.6% increase for long-term care insurance premiums to help address a projected $600 million shortfall over the next 50 to 60 years, the San Francisco Chronicle reports.
The increases to monthly premiums will vary from $1 to $115 depending upon coverage, CalPERS documents indicate. Policyholders will be permitted to downscale their coverage to reduce costs.
Bonnie Burns, a member of the CalPERS long-term care advisory committee, said that CalPERS had tried to avoid such a substantial premium increase but that more claims than expected had been filed, particularly cognitive claims. Such claims are more costly because they require more intensive care.
Overall, the number of claims has doubled over three years.
CalPERS self insures its long-term care insurance program, relying on investments and premiums to fund benefits offered under its own insurance products (Colliver, San Francisco Chronicle, 11/17).