CalPERS Reopens Long-Term Care Insurance To New Applicants
By Dale Kasler, The Sacramento Bee | |
McClatchy-Tribune Information Services |
The pension fund said it's taking applications for a series of new insurance plans designed to be affordable. Long-term care pays for such things as stays in nursing and convalescent homes.
Following years of hefty losses, CalPERS closed off the program to new applicants in 2008. In 2012, the fund imposed an 85 percent rate increase for most of its existing policyholders, taking effect in 2015.
The rate hike affects older plans, which carry unlimited, "lifetime" benefits and protection against inflation.
The newly designed plans now on sale offer limited benefits. Applicants can select programs that cap benefits at three, six or 10 years, said CalPERS spokeswoman
"None of the older plans that were offered in the past are available anymore," Esajian said.
When it announced the big rate increase in 2012, CalPERS suggested that existing policyholders could switch to the newer, more affordable plans, and spare themselves the big rate increase. But Esajian said policyholders should make sure they've completed the underwriting process and been approved for a new plan before they drop their old policy.
"Don't cancel the one you have until you've been accepted into the other one," she said.
CalPERS actually reopened enrollment in a "soft" opening, without publicity, in late December.
The pending 85 percent rate increase sparked a class-action lawsuit last August against CalPERS on behalf of the 125,000 policyholders affected by the rate hike. The case is pending in
CalPERS' long-term care insurance is available to all current and retired
Information is available at https://www.calperslongtermcare.com/.
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