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[February 4, 2000 ]
In response to a survey of public employees who know they need long-term care coverage but haven't purchased it, CalPERS will offer plans with additional less expensive options during their 2000 application period. The application period will begin April 1 and end June 30, 2000.
Premiums for plans with the lower benefit amounts will be approximately 20% lower. All three plans will offer daily nursing benefit amounts of either $100 or $130. Assisted living daily amounts will be either $50 or $65. Monthly home care benefit amounts will be either $1,500 or $1,950.
CalPERS encourages you to consider how you will pay for long-term care if you need it. Long-term care coverage is one good way to deal with the high cost of care. The average cost of one year in a nursing home today is $47,000. By 2019, one year of nursing home care is expected to cost $119,000. The average stay for a person age 65+ is 2.6 years. Sixty percent of Americans over age 65 will need some form of long-term care. Typically, neither health insurance nor Medicare covers long-term care. If you plan for this risk today, you will have a way to meet this serious financial concern in the future.
The CalPERS Long-Term Care Program provides quality coverage that is more affordable than before. All premiums are age-related. The younger you are, the less a plan costs. Interested employees should call 1-800-266-1050 to request a CalPERS Long-Term Care application kit. It will be mailed shortly before the 2000 application period begins.