More Bad News from CalPERS Long-Term Care

Years ago, CalPERS created long-term care insurance for state employees. Although UC is not covered by CalPERS for pensions, UC employees were allowed to buy CalPERS long-term care insurance. What followed was big hikes in insurance premiums and litigation. Some subscribers cancelled their insurance; others took cut-down policies. Now, for those UC folks who hung on, comes a warning of yet more hikes:

From the Sacramento Bee: CalPERS has suspended enrollment in its long term care insurance plans and is preparing for a rate hike as the coronavirus takes a toll on the plans. Health officials expect “significant premium increases” and will share specifics in September, CalPERS Chief Health Director Don Moulds told the CalPERS board this week. The new rates would go into effect in July 2021, Moulds said.

About 118,000 current and retired state workers are enrolled in CalPERS’ long term care insurance plans. The plans help cover costs of care in nursing homes, long term care facilities and at home. Moulds recommended suspending new sign-ups because volatility makes it too difficult to set prices.

“We recognize that this is an exceedingly difficult time to be having this discussion,” Moulds told the board...

Full story at https://www.sacbee.com/news/politics-government/the-state-worker/article243634217.html