Press Release

April 19, 2012

External Affairs Branch
(916) 795-3991
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer
pressroom@calpers.ca.gov

CalPERS Selects Administrator for Long-Term Care Program

SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) Board of Administration today announced it has selected Univita Health Inc. (Univita) to administer its Long-Term Care (LTC) Program for more than 154,000 CalPERS members and their families.

The award to Univita, subject to contract negotiations and satisfaction of terms and conditions, was based on the company receiving the highest score in a competitive bid process with two other proposers, CHCS Services and Long Term Care Partners. The selection was announced following interviews conducted yesterday by the Board’s Pension and Health Benefits Committee (PHBC). Univita, whose headquarters is based in Scottsdale, AZ, with long-term care operations facilities located in Eden Prairie and Woodbury, MN, will be responsible for providing comprehensive management and administrative support for the CalPERS LTC Program. The company has administered the CalPERS Long-Term Care program since it began in 1995. The new contract begins January 1, 2013 and its estimated value is $100 million over five years.

CalPERS PHBC chair Priya Mathur lauded the successful conclusion of the search for a long-term care administrator. “The process began long before our Request for Proposals was issued and companies responded,” she said. “CalPERS staff put a lot of work into developing contract requirements that move us into a more effective business model, one which increases transparency and accountability in information sharing, operations, care management, and administrative costs.”

The CalPERS LTC Program is specifically designed for California public employees, retirees, and their extended family members. It provides benefits to help members meet the high cost of long-term care services.

CalPERS is the largest purchaser of public employee health benefits in California, and the second largest public purchaser in the nation after the federal government. CalPERS provides health benefits to more than 1.3 million State and public agency active and retired members at an annual cost of nearly $7 billion.  The CalPERS Long-Term Care Program is a voluntary, self-funded, not-for-profit program helping to protect the assets and lifestyles of our members against the significant costs of long-term care. CalPERS has assets of approximately $235 billion and administers retirement benefits for more than 1.6 million California state, local government, and public school employees, retirees, and their families on behalf of more than 3,000 public employers. The average CalPERS pension benefit is $2,332 per month. The average benefit for those who retired in the most recent fiscal year that ended June 30, 2011, is $3,065 per month. More information about CalPERS is available at www.calpers.ca.gov.

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Dated: 04-19-2012