Long-Term Care
CalPERS long-term care (LTC) coverage helps participants pay for the cost of care when they need assistance with the activities of daily living. This is an optional, employee-paid, benefit.
Visit the CalPERS Long-Term Care website to:
- Learn about the cost of care
- Log in to or register your account
CalPERS has decided to temporarily suspend open enrollment for the Long-Term Care Program due to current uncertainty in the long-term care market. Therefore, effective June 17, 2020 and until further notice, CalPERS Long-Term Care will not be accepting new applications for coverage.
In November 2020, the CalPERS Board of Administration approved a rate increase on all Long-Term Care Program policies to be phased in over two years. The Long-Term Care Fund is facing a shortfall due to lower than expected investment returns and an adjustment in actuarial assumptions. Given this shortfall, rate increases are necessary to cover the projected future costs of providing benefits to policyholders.
Long-Term Care Policyholder Rate Increase Information
We recognize this is an exceedingly difficult time, particularly during the continued uncertainty caused by COVID-19 and its impact on seniors and caregivers. We’ve spent months comprehensively exploring numerous options and consulting with state and national experts. We’re only taking this action because there is no viable alternative. We must maintain the sustainability of the program and protect the benefits for policyholders who count on the program for critical long-term care.
The rate adjustments will be phased in over two years. A 52% increase will take effect no earlier than November 2021 and, if necessary, a second increase of up to 25% will take effect no earlier than fall 2022. We’ll send you a customized offer at least 60 days prior to your rate increase effective date that will allow you to avoid the 52% rate increase. In fall 2022, we’ll provide another offer allowing you to avoid the potential 25% rate increase.
CalPERS is engaging an external manager with expertise in long-term care fund investing to improve investment returns in a low-interest rate environment. The CalPERS Board of Administration approved a change to its mix of investments in March 2021.
We’ve developed benefit design options that, if accepted, will allow you to avoid the 52% rate increase. The options include:
- Reducing the duration of your benefit. This option would shorten the benefit period of your policy.*
- Reducing the daily benefit amount. This option would decrease the amount that you’ll be reimbursed when you qualify for benefits and receive eligible long-term care services.
- Reducing Inflation Protection. This would allow you to give up this optional benefit but maintain the higher daily benefit amount you have accrued over the years.
*Note that if you choose a policy with less than a one-year benefit period, it may not be tax-qualified. We recommend you consult your tax advisor if you have questions regarding the tax favored status of this coverage.
If you reduce your benefits, can you increase them later? Not necessarily. You can apply for an increase in benefits available for your policy, but it’s important to understand that you may be subject to medical underwriting. This means your full medical history could be reevaluated, a face-to-face assessment may be required, and your application for an increase in coverage could be declined. If approved, you would begin paying the increased premium for the added coverage you obtained.
We can’t guarantee future rates. However, as was the case in this instance, we would consider every possible option to minimize or prevent future increases.
The rate changes don’t affect you if you’re currently receiving long-term care benefits. However, if you get better and no longer need long-term care services, you’d be subject to the rate increase at that time.
You may cancel your coverage at any time, however, we’re not able to provide a refund of premiums. We strongly recommend that you evaluate all your options before canceling your coverage. If you choose to cancel your long-term care policy, mail a written request, with your signature, to the following address:
LTCG/CalPERS Long-Term Care Program
P.O. Box 64902
St. Paul, MN 55164-0902
Contact CalPERS Long-Term Care
The CalPERS Long-Term Care Call Center is administered by our third-party administrator, LTCG. Their customer services representatives have access to detailed information about your policy. The LTCG Call Center is open Monday through Friday, 8:00 a.m. to 5:00 p.m. (Pacific Time).
If you have any questions, you can contact them at:
- (800) 982-1775 for general questions related to your policy
- (888)-877-4934 for questions related to rate increases