Cal-PERS – the California Public Employees Retirement System has a public relations nightmare on their hands. For years CAL-PERS has been promoting their own privately funded Long Term Care policies to its rank and file. Many of us who sell these types of policies were always surprised at how low the premiums seemed compared to our traditional polices from carriers like Genworth, Transamerica and John Hancock. And, as noted in previous blog articles, most of the big name carriers are repricing or raising rates to adjust to the current economic environment. But, at the end of 2012, CAL-PERS announced to their over 140,000 policy holders a rate increase that is shocking to all of us. The average hike for every policy holder will be 85%…that is right…an 85% increase! I can’t imagine how the employees in the State are taking this news. Below is an article from the Sacramento Bee that explains the history of CAL-PERS and their long-term care policies. The questions remains…who is to blame?
If you are in the teacher market in CA, or if you work with any State Employees – call us today to hear about our state-of-the-art LTC workshop that may help you get in front of these groups and educate them on what their real choices might be.