CalPERS Long-Term Care Fiasco: Private Burial to Hide Malfeasance, Failure to Implement Legislation nakedcapitalism.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nakedcapitalism.com Daily Mail and Mail on Sunday newspapers.
Yves here. Please welcome Lawrence Grossman, who with his wife is a CalPERS long-term care policy holder. Grossman, a financial analyst, describes the extreme underfunding of this zombie program. The rate increases that CalPERS is putting through, a 900% increase over the rates charged at the outset, are wildly disproportionate to the level of any other significant long-term care program. In other words, even by the standards of an industry that is in deep financial trouble, CalPERS’ rate increases are such an outlier that it is hard to explain them solely as a result of the original underpricing. It is not unreasonable to suspect that mismanagement also contributed to this sorry outcome.