CalPERS Offers Benefit Increase Option to LTC Members

If you enrolled in the CalPERS Long-Term Care Program and did not select the built-in Inflation Protection option, you will be sent a letter in late July, giving you the option to continue your current benefits coverage and premium rate or to increase your benefits coverage with a new premium rate (i.e., Benefit Increase Option or “BIO”).

Every three years, CalPERS evaluates the increased costs of long-term care. Using a national inflation index that specifically measures the inflation rate of long-term care as well as the increase in private-pay nursing home costs, CalPERS has determined that an increase of approximately 15% in benefits over the three-year period is necessary to keep pace with these rising costs.

If you want the Benefit Increase Option, sign and return the BIO Election Form enclosed in their letter. Your new premium rate will be adjusted to the new rate effective December 1, 2004 or your next corresponding premium due date.

If you have questions about the CalPERS Benefit Increase Option, contact CalPERS Long-Term Care Program’s toll-free customer service phone number (800) 982-1775, Monday-Friday, 8 a.m. and 5 p.m. (PST).