California State University Emeritus & Retired Faculty & Staff Association


CalPERS Long-Term Care Program to Raise Rates By 52% in 2021

The following letter will be sent by the CalPERS LTC Program to current policyholders:

California Public Employees’ Retirement System
Long Term Care Program
P.O. Box 942719, Sacramento, CA 94229-2719 

First Name  Middle Name  Last Name
City, State Zip code  

Month 2021                                                                                                    Re: Policy Number

Dear First Name,

Thank you for your continued participation in the CalPERS Long-Term Care Program. This letter is to inform you of the November 2020 Board of Administration’s difficult but unavoidable decision to approve a rate increase for all Long-Term Care Program policies. 

We recognize this is a challenging time to raise rates, especially during the continued uncertainty caused by COVID-19 and its impact on seniors and caregivers. This decision was not made lightly. Our team spent months exploring ways to minimize the amount of the increases, but we could not eliminate them entirely. Across the country, long-term care insurers are facing significant financial challenges, and many are having to implement rate increases. CalPERS Long-Term Care Fund, which is separate from the retirement fund, is facing a shortfall of approximately $2.1 billion. Higher rates are necessary to maintain the program’s sustainability and protect the benefits of policyholders for whom it provides critical care. 

For your existing coverage, a rate increase of 52% will take effect no earlier than November 2021. However, in place of the increase, CalPERS will be offering the opportunity to change your long-term care benefit package. A letter explaining these options will be sent to you at least 60 days in advance of your rate increase.

If necessary, a second increase of up to 25% will take effect no earlier than fall 2022. If this second change is needed, you will have another opportunity to adjust your benefits. You will receive a letter explaining your options at least 60 days in advance of your rate increase. The letter will include the opportunity to further amend your long-term care benefit package in place of that rate increase.  

There is no action required on your part at this time. This letter is only to notify you of the rate changes. We do not have your specific offer information available at this time. 

We have enclosed Frequently Asked Questions with additional information. Should you have general questions about your policy, please call the customer service center of our Long-Term Care Program Administrator, LTCG, at 1-888-877-4934 (Monday through Friday, 8 a.m. to 5 p.m. PT). 



Don Moulds, Chief Health Director
Health Policy & Benefits Branch

[Editor's note: Because the 2022 increase of 25% will be on top of the 52% increase for 2021, the net increase will be 90% over two years if the second increase goes into effect.]

[Update 5/27/21: CSU-ERFSA is working with our benefits partner AMBIA to determine if we can offer LTC insurance options to our members that provide comparable benefits to the CalPERS LTC program, but with lower and more stable premiums. We will post more information as it becomes available.]

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