The Office of Personnel Management (OPM) has launched a new Federal Long Term Care Insurance Program (FLTCIP) plan offering called “FLTCIP 3.0”.
According to OPM, the new plan and rate structure is available to applicants who apply for coverage on or after October 21, 2019. It does not impact current FLTCIP (1.0 and 2.0) enrollee plans or premiums.
The new plan includes a premium stabilization fund (PSF) designed to reduce future spikes in premium increases. The new plan also limits some of the inflation protection available in FLTCIP 1.0 and 2.0.
In 2016, the average increase in FLTCIP premiums was 83 percent. Groups representing federal employees and retirees, such as the National Active and Retired Federal Employees Association (NARFE), began to challenge OPM to change the structure of FLTCIP to prevent such spikes in premiums from occurring in the future.
A guide booklet to FLTCIP 3.0 is available here from the program administrator (48-page PDF).
The FLTCIP provides comprehensive long term care coverage with special emphasis on home and community care services. According to OPM, coverage is designed to help the claimant and family pay for the high costs of long term care and increase options for care delivery.
Those eligible to enroll in FLTICP include federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and qualified relatives.
The Federal Long Term Care Insurance Program started in 2000, and is sponsored by the U.S. Office of Personnel Management, insured by John Hancock Life & Health Insurance Company, and administered by Long Term Care Partners, LLC.