Louisiana officials scurrying to stop ‘drastic’ insurance rate increases for retirees

Tuesday, 14 November 2017, 11:38:20 PM. State officials were closeted behind closed doors Monday trying to find a way to keep monthly life insurance rates from dramatically rising for state government retirees next year.
State officials were closeted behind closed doors Monday trying to find a way to keep monthly life insurance rates from dramatically rising for state government retirees next year. “The rates went up 5, 6, 10 times, depending on your age,” Frank L. Jobert Jr., with Retired State Employees Association of Louisiana, told The Advocate Monday. It’s not uncommon for an 80-year-old state government retiree’s monthly life insurance bill to go from $19 a month to $109, he said. Just how high depends on the insured’s age and the extent of coverage in their policy. The monthly premiums for health care coverage are not increasing for 2018 – just life insurance. Jobert said the life insurance provider, Prudential, has lost $4 million a year for the past four years and wanted to start linking rates to the ages of the policy holders, rather than the flat monthly fees charged over the years. That’s mostly because younger employees didn’t sign up, leaving the elderly as the prime holders of the policies. The 24,000 employees still on the job and holding life insurance policies should see lower monthly prices starting Jan. 1, 2018. But the proposed increases for the 44,000 retirees were so great and the outcry so loud that Gov. John Bel Edwards’ administration started looking for ways to make the increases a little less drastic. Tommy Teague, chief executive officer at the Office of Group Benefits, which handles insurance for state government employees and retirees, did not return calls...Read more
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