FAQs: Premium Hikes, Benefit Options in New Long-Term Care Contract for Federal Employees
UPDATED: May 15, 2009
Earlier this month, the Office of Personnel Management (OPM) signed a
contract with John Hancock Life and Health Insurance Company to provide
insurance for the Federal Long-Term Care Insurance Program's (FLTCIP) second
7-year contract term.
The FLTCIP official website has provided some frequently asked questions about the program.
Some of the most notable changes to the benefits and premiums
are:
OPM anticipates the new benefit options will be
available for new applicants approved for coverage sometime this Fall.
At that time, the current benefit plan will be discontinued for new applicants.
Current enrollees will also have the opportunity this Fall to change to the new
benefit options or make changes to their coverage.
If you are a current enrollee, your
coverage and current premiums continue without interruption. John Hancock will send you, as a current enrollee, personalized
information this Fall. That information will show you the details about choices
you can make.
The new
contract includes new benefit options:
- Higher home health care reimbursement: up to 100% of the
Daily Benefit Amount
- A new 2-year benefit period
- Higher daily benefit amounts
(available from $100 to $450 in $50 increments)
- Informal care provided by
family members who do not normally live with the insured at the time of claim is
covered up to 500 days
- A waiting period based on calendar days
- Coverage for bed reservations up to 60 days
Premiums will
increase for some enrollees, and those enrollees will have choices to avoid an
increase.
Premiums will increase for current enrollees with the Automatic Compound
Inflation option who were under age 70 when they purchased the coverage AND who
choose to keep the same coverage they have now. For that group of enrollees,
premiums will increase on or about January 1, 2010. The amount of the increase
depends on the person's age when the insurance was purchased:
| Age at Purchase |
Percentage Increase |
| 65 and younger |
25% |
| 66 |
20% |
| 67 |
15% |
| 68 |
10% |
| 69 |
5% |
| 70 and older |
No increase |
This premium increase does not affect current
enrollees with the future purchase option.
Current enrollees
will have choices. Enrollees subject to the premium increase can
avoid the premium increase and keep premiums approximately the same as they pay
now if they make certain adjustments to their current benefits. They will
receive their choices in the Fall.
A complete list of the FLTCIP FAQs are here.
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