Long-Term Care Insurance: CalPERS Policies Offer California Public Employees Asset Protection

Program to Promote Long-Term Care Insurance for the Elderly

The state of California implemented the California Partnership for Long Term Care (CPLTC)—its public-private partnership to finance long-term care—in 1994.

The project was part of the Robert Wood Johnson Foundation's (RWJF) national Program to Promote Long-Term Care Insurance for the Elderly.

Key Findings

  • The first group offering, later replicated in Connecticut and Indiana, was CalPERS (the California Public Employees' Retirement System).

    • All California public employees, retirees, their spouses, parents, and parents-in-law are eligible for the CalPERS Long-Term Care Program.
    • CPLTC provides one dollar of asset protection for each dollar paid for long-term care by the purchaser's insurance policy.
    • Once the insurance has paid benefits in an amount equal to remaining assets, the purchaser may apply for Medi-Cal, the state's Medicaid program, to help pay for continuing long-term care and medical expenses without having to spend down remaining assets.
    • As of October 2000, 20,000 policies were in effect.