timo2
Thinks s/he gets paid by the post
I just received a letter from CALPERS indicating that there will be 7 options offered:
1) continue current coverage - lifetime coverage with built in inflation protection -5% increase in premiums in 2013, 5% in 2014, 85% in 2015
2) Maintain Lifetime Coverage with inflation protection but reduce Daily Benefit amount to keep current premium - 5% increase in 2014 and 85% in 2015
3 and 4) Reduce Lifetime coverage to 6 or 3 year benefit period and keep inflation protection - avoid 2013 and 2014 increases but keep 2015 85% increase
5, 6 and 7) Reduce lifetime coverage to 10,6 or 3 year benefit period and drop inflation protection - reduce premium amount and avoid future 2013, 2014, and 2015 premium increases.
8) not mentioned but stop pouring money down this rat hole.
Obviously the way this thing is structured they are counting on lots of folks going the option 5,6,7, or 8 route.
There is supposed to be a subsequent letter with actual premium amounts tailored to each policy holder I assume.
That's not the best set of choices. They must have really messed up their initial estimates.
When my LTC plan retooled, one of the choices (the one I chose) that dropped the inflation from 5% to 4% and keep the same premium and daily benefit. And people were crabby about our choices. Good thing they weren't given these ones.