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Thursday, February 28, 2013

Long-Term Care Cop Out?

Back on Feb. 20, we posted a piece on a big CalPERS hike for long-term care insurance.  We noted that although UC is not covered by CalPERS, as state employees, UC employees could buy - some might say were encouraged to buy - long-term care insurance through CalPERS.  Now premiums are climbing rapidly and some may drop the insurance (losing what they paid) due to the price hikes.

From the Sacramento Bee State Worker Blog:

Longtime policyholders say that when CalPERS was pushing the insurance in the 1990s, it guaranteed their rates wouldn't rise. That gave younger adults – a crucial group for such plans – incentive to buy. Surely CalPERS knows what it's doing, those early purchasers thought. A graph in a sales brochure from 1998 shows inflation-protected coverage for a 45-year-old as a flat blue line. It starts at $75 per month and stays there. "With this option, your plan is designed to remain level and won't increase each year," the brochure says...  Asked whether CalPERS broke its promise, Ann Boynton, deputy executive officer of the CalPERS Benefit Programs Policy and Planning unit, said, "This could sound like a cop-out, but I wasn't here. I can't say what anyone was told or what they heard." Again, from the brochure: "The ... program is one of the most comprehensive and affordable plans available today." But the material also left wiggle room for raising policyholder payments: "Your premiums can only be changed through action of the CalPERS Board." ...
Our earlier post can be found at:
Seems like some cops are nicer than others:


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2 comments:

  1. AnonymousFebruary 28, 2013 at 7:46 PM

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  2. UnknownApril 15, 2013 at 9:56 AM

    We can see that with the past years, long term care increases an enormous price. Looking through this post back in 1990's it has a well price where everybody can start purchasing it. While in the present time, some are afraid because of the scary price. However, it can be settled. Long term care can be made affordable. This is where the LTC specialist can do his trick. You won't even have to think of seniors diseases, which is a big factor to all.

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