CalPERS Long Term Care (LTC) Insurance Update

The CalPERS LTC Fund is in serious financial trouble.  The LTC Board has determined that swift action to improve the fiscal health of the Long Term Care Program is imperative. 

Two actions will take place immediately, the first being that there will be no open enrollment program, nor will any new policies be issued until the fund conditions improve.  The second will be an increase in rates of 15% to 20% for current policy holders next year.

CalPERS will be sending this information to CalPERS members this week.

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7 Thoughts on “CalPERS Long Term Care (LTC) Insurance Update

  1. Jim and Sharee Cope  |  

    Is there any class action lawsuit in the works against calpers? My husband and I have both had it since we were 56. We are now 68 and feel that when we signed up for the covered, we were pretty much assured that our premiums would pretty much stay the same. We have always had the inflation protected top coverage they offer. Now that we are getting futher into our senior years, and closer to when we could possible need that coverage, we are being priced out of being able to afford it. We feel Calpers has backed off of what that “promised” us. The percentage increase from what we originally agreed to seems illegal. Is it?

    • Thanks for the post Copes! As of now, no our Firm doesn’t have any actions against CalPERS, however we understand your frustration with the system. Let us know if we can help! You can always email me directly from my Bio.

  2. robert gantt  |  

    for people on fixed incomes these increases are a real burden. i have gone from lifetime coverage down to the minimum 2 year limit. if i had kept my current coverage it would have cost me $800.25 a quarter almost double what it started at after 7 years. we are now paying for poor administration of the plan. i echo the statements made above.

  3. W Grimes  |  

    I have all of the promotional literature from CalPers when I initially signed up over ten years ago. Every graph and statement clearly shows a stable monthly premium with increasing benefits. The virtue of early enrollment with inflation protection is a significant selling point throughout the documents. The latest of three rate increases since my sign-up completely contradicts the marketing points extolling inflation protection and the premium costs are no longer fixed. The notice I received has no option offered to cancel and get any money refunded from a proposal that has radically, and I believe illegally, changed from what was first offered to entice policy holders.

    There must be a class action lawsuit and coverage should either be provided meeting something close to the original terms or money refunded and this underfunded ponzi scheme stopped. I am looking for a law firm interested in taking this case. I believe it will be a very solid case based on the promotional literature I reviewed from my files last evening that promise a completely different model of coverage and cost than what is currently being offered. Thank you.

  4. I would be more than happy to join a class action lawsuit against CalPers LTC. My wife and I joined in 1997 and are paying for Inflation Protection. The 5% annual increase that will accompany the 22% (for the first year) increase completely (and in my mind, illegally) erases the ‘Inflation Protection’ clause in the contract. Our rates will have more than tripled by 2011, and yes, we were also under the impression that the premium would rarely, if ever, be increased. This is an outrage!!

  5. B Jacobs  |  

    I too am interested in pursuing legal action against PERS LTC. In the promotional material that I received when I signed up (in 2000) it says “rates are designed to remain stable.” This is the 3rd significant increase since then and after this my rates will have doubled. I am outraged. What are the possibilities of a class action suit?

  6. Jennifer Rellar  |  

    Isn’t there any legal action that policy holders can take against CalPERS and it’s Long Term Care Group.