Whopping CalPERS rate hikes
Long-term-insurance program prepares for budget woes
The California Public Employees Retirement System (CalPERS) has made a disturbing announcement for many of its long-term-care clients.
CalPERS has proposed an 85 percent premium increase for 115,000 of its 150,000 long-term beneficiaries, according to the Sacramento Business Journal. Earlier this month, CalPERS officials were considering a 75 percent premium hike, which organization spokesperson Bill Madison called “a work in progress” at the time.
The raised premiums, which would take effect in 2015 and be phased in over two years, are in anticipation of budget shortfalls in the future. Unlike its pension-benefits program, CalPERS’ long-term program is not funded by taxpayers.
“At current course and speed, we would not have enough money … to pay anticipated claims,” said CalPERS deputy executive officer Ann Boynton.