The Seattle Times reports that California government’s CalPERS long term care insurance plan is drawing major heat in recent months as some people have had their rates increased more than 100% on what their premiums started. We have received thousands of calls and requests from CalPERS members who are up in arms about the huge rate increases they have had. This brings me to the other government long term care plan that was slipped into the Health Care Reform bill called the CLASS Act long term care insurance program. As seen in the CalPERS fiasco their will probably be major rate increases to the Federal Government group long term care plan as the plan will just mainly attract the less than healthy people. When this adverse selection happens the CLASS Act long term care plan will be forced to have huge rate increases as more and more of those unhealthy people file claims.
If you have decent health you’ll get more benefits for less money with private long term care insurance when you use your good health to your advantage and have yourself individually underwritten. This fact will upset a lot of the politicians who are pushing for big government solutions, but no person will pick a government long term care plan when given the proper facts. They will buy the insurance plan with the more stable premiums that will cost less money and give the person more benefits.
If you have had a bad experience with the CalPERS plan call us and we may be able to help even if you bought it several years back. If you have decent health stay away from the CLASS Act long term care insurance plan and buy the coverage with a private company like you do with your auto, home and life insurance.
Think of it this way. Can you ever imagine buying into a government auto insurance plan where your good driving record is grouped into all the crazies on the road? Probably not. No one will want to be in the same insurance rate class with the people who have DUIs, 100 MPH speeding tickets, etc. if they can avoid it. Buying any group local or federal long term care insurance is the same thing. For the people who have gone to the gym regularly, taken their vitamins, said no to dessert, use the good health that you have worked so hard on to your advantage and it will save you money while getting more benefits when you buy private long term care insurance.
