The California Public Employees’ Retirement System (CalPERS) is an agency in the California executive branch that “manages pension and health benefits including the long term care insurance program that was first launched in 1990.  The program is the largest self-funded long term care insurance program of its kind and pays for qualifying nursing home care, residential assisted living, home health care and homemaker services.

“The CalPERS long term care insurance program closed to new applicants in 2008 so it’s good news to have them re-entering the California market,” declares Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  The national trade group which advocates for long term care insurance planning is headquartered in Westlake Village, CA.

Slome spoke recently to long term care insurance professionals about the program.  “It’s an excellent program though some consumers may be able to save money or get better coverage in the open marketplace,” Slome shared.   According to AALTCI, a single male age 55 purchasing a $164,250 benefit pool pays $1,824 a year under the CalPERS plan.  “Leading long term care insurers offering coverage in California offer the same coverage currently for about $1,600,” Slome notes.  “Many CalPERS eligible employees will be comparison shopping in the weeks and months so understanding the features and options is important.”

“Leading insurers such as Genworth, Mass Mutual and MedAmerica offer a variety of long term care insurance inflation growth options that will yield higher benefits that the CalPERS program,” Slome advises.   According to AALTCI, the CalPERS plan offers a form of inflation growth that over many years provides significantly less dollars in future benefits.

“Comparison shopping is in one’s best interest,” Slome adds.  To compare the CalPERS long term care insurance costs connect with a designated California long term care specialist.  Call the American Association for Long Term Care Insurance at (818) 597-3227 or visit the Association’s website at www.aaltci.org.

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“CalPERS closed their long term care insurance program to new applicants back in 2008 so it’s good news to have them re-entering the market,” declares Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  The national trade group which advocates for long term care insurance planning is headquartered in Westlake Village, CA.

“CalPERS is offering a newly designed family of plans that applicants can select from,” Slome notes.  The program is available to all current and retired California public employees, their spouses, parents, parents-in law and adult children and siblings between the ages of 18 and 79.

A preliminary review of the program features and costs by AALTCI finds some consumers may be able to save money or get better coverage in the open marketplace.  According to AALTCI, a single male age 55 purchasing a benefit pool of $164,250 will pay $1,824 a year under the CalPERS plan.  “They could get that same coverage currently for about $1,600 if they comparison shop,” Slome advises.

The CalPERS plan offers a three percent simple inflation growth option.  “Leading insurers such as Mass Mutual, Genworth and MedAmerica offer a variety of other options that, for the same cost could actually get you more benefits in later years when you are likely to need care,” Slome advises.   According to AALTCI, a $164,250 initial benefit grows to $312,075 at age 85 with the three percent simple compound growth.  “A California couple age 55 could pay about the same as the CalPERS plan with a leading insurer but they’d have over one million dollars in combined benefits available to them at age 85,” Slome notes.  “The difference can really be quite significant over time.”

“We always advise consumers that comparison shopping is in their best interest,” he adds.  “A long term care insurance specialist can compare multiple insurers offering coverage in California and offer you the policy that best suits your age, your health and budget.”

To compare long term care insurance costs connect with a designated California long term care specialist call the national organization at (818) 597-3227 or visit the Association’s website at www.aaltci.org.

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“We are hearing from a growing number of CalPERS long term care insurance policyholders who are confused about what to do,” explains Jesse Slome, executive Director of the American Association for Long-Term Care Insurance.   The organization has created a new online presentation designed to outline considerations and next steps and to share pricing for long term care insurance available currently to California residents.

The impacted long term care insurance policies tend to offer lifetime or unlimited benefits coupled with an annual five percent compounded increase in daily benefit amounts the Association director notes.  “This was the Rolls Royce level of coverage when they purchased it and is not even available from most insurers today,” Slome notes.

According to the Association, a 65-year old single individual applying for $547,500 of long term care insurance coverage without the future five percent inflation growth option will pay between $4,200 and $8,200 a year.  Similar level of immediate coverage including the five percent annualized benefit growth option will cost between $10,100 and $19,900 per year according to the long term care trade group.

“Individuals with CalPERS long term care insurance policies facing rate increases have time to decide and they can avoid paying more by accepting some of the changes being offered,” Slome notes.  “Inflation is not a factor so why pay to have your benefits increase if you have a pension or Social Security that could pick up some of the cost?  In the end, it makes little sense to even try to compare what you have with new coverage that will cost a whole lot more assuming g you can even health qualify.”

To view the presentation go to http://goo.gl/fMTKd.  For long term care insurance costs connect with a designated specialist member of the American Association for Long-Term Care Insurance by visiting the organization’s website

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