The California Public Employees’ Retirement System is raising premiums for its self-insured group long term care insurance plan by an average of 33.6%.
The increase was needed to avoid a projected $68 million deficit for the program within 60 years, according to actuarial projections.
The CalPERS plan, begun in 1995, currently has 174,000 members, all state and local government employees. CalPERS officials did not estimate how many might drop out of the plan due to the rate increase, which covers policies issued in 2004 and earlier. Rates for policies issued in 2005 and afterward would be unchanged, according to a report to CalPERS’ Health Benefits Committtee by the agency’s Office of Health Plan Administration.