Monstrous hike in LTCI premiums for California public employees
Thousands of state and local government workers and retirees will pay more for long-term care policies as California’s largest health insurance provider struggles to contain costs. The California Public Employees’ Retirement System has notified 173,000 policyholders that the cost of an average long-term care policy will go up by about a third beginning this summer. The move comes after trustees of the $4 billion nonprofit agreed last year to raise rates to offset a projected $600 million deficit in the coming decades. The increases will range from 5 percent for younger, healthier individuals to 47 percent for older members. “Long-term (care) is probably the greatest need you may have,” said Wayne Doyle, a 64-year-old retired firefighter from Redding. “They’re putting us in a position of considering dropping out of the program.”
Read more at SignOnSanDiego.com
Meanwhile, some 20 states will begin launching–using taxpayer funds–a hard-core sales campaign promoting private LTCI as part of the DRA-authorized Long Term Care Partnerships. Policies sold as partnership policies don’t have to contain cost control provisions. Say what?