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: