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CalPERS Warns Retirees: Premiums for Long-Term Care to Skyrocket

The California Public Employees Retirement System, also known as CalPERS, has put roughly 60,000 retirees on notice that they face a steep increase in premiums for long-term care insurance.

Now, a California State Assembly committee is looking into the causes of the premium spike.

CalPERS told policyholders they face a five percent increase on premiums this year and next year -- and an 85 percent increase over two years starting in 2015.  The insurance covers lifelong nursing-home care or in-home care.  Policyholders can avoid the increases if they opt for limited-term plans. 

The Assembly Committee on Long-Term Care and Aging heard from policyholders on Tuesday.  A woman who declined to give her name echoed the feeling of many that the plan has been mismanaged.

"When I bought the plan in 1995," the woman testified before the committee, "I feel that I was the victim of fraudulent practices."

CalPERS says the changes are needed to make their long-term care program solvent.

 

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