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 href="http://www.ltcfeds.com/help/faq/second-contract.html"

target=_blank>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. class=content>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.

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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.