June 20, 2017 – The California Public Employees’ Retirement System Pension and Health Benefits Committee announced today that it would retain LTCG as the third-party administrator for CalPERS Long-Term Care. LTCG, based in Eden Prairie, Minnesota, will continue to administer long-term care benefits for approximately 128,000 participants in the program.
The selection completes a competitive bid process for a new five-year third-party administrator contract that came down to two finalists: LTCG and CHCS Services of Horsham, Pennsylvania. The committee selected LTCG based on the results of the most competitive bid package.
The full Board of Administration must approve the committee’s decision during its meeting Wednesday.
“We placed a lot of emphasis in this solicitation on transition to a new agreement, cost savings, improved technology, and customer service. Both companies presented us with thoughtful, well-developed proposals,” said Priya Mathur, chair of the Pensions & Health Benefits Committee. “However, we believe LTCG’s areas of strength best meet CalPERS’ long-term and short-term needs.”
In addition to being CalPERS’ current long-term care third-party administrator, LTCG provides administrative services for more than 50 national companies, including the country’s top 10 long-term care insurers. The five-year contract takes effect January 1, 2018. CalPERS estimates the new contract will lower its long-term care administrative costs by an average of more than $500,000 a year.
“Our new contract with LTCG means that we not only will have continuity, but we’ll have stronger terms and conditions of service that will enable us to save money,” said Liana Bailey-Crimmins, CalPERS’ chief health director. “Under this new contract, we’re confident that LTCG will provide CalPERS’ Long-Term Care participants with the excellent service and attention they deserve.”
CalPERS Long-Term Care provides participants coverage for services needed to help them manage their activities of daily living due to illness, injury, disability, cognitive disorder or aging. It is available to current and former California public employees, retirees, and their family members between the ages of 18 and 79, including: spouses, parents, siblings, grandparents, grandchildren, nieces, nephews, aunts, uncles, and in-laws. Those eligible may apply online, or request an application kit by calling (800) 908-9119.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.8 million members in the CalPERS retirement system and administers benefits for more than 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS’ total fund market value currently stands at approximately $325 billion. For more information, visit www.calpers.ca.gov.
Communications & Stakeholder Relations
Brad W. Pacheco, Deputy Executive Officer
Wayne Davis, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer
View the original announcement here.