By Kellie Lunney – August 4, 2015
Premiums increased Aug. 1 for new enrollees in the Federal Long Term Care Insurance Program, according to the Office of Personnel Management.
OPM sent agency benefit officers a notice on Monday informing them of the rate increases, which do not affect current enrollees in the FLTCIP. The notice said the agency and insurer John Hancock periodically review program pricing “to assess the adequacy and appropriateness of the premium rates available to new FLTCIP enrollees.”
The new premiums — which, for now, affect only new enrollees — apply to all plan options, including those under both the automatic compound inflation option (ACIO) and the future purchase option (FPO). Enrollees who choose ACIO pay higher premiums up front to avoid annual increases for inflation, while the future purchase option automatically updates premiums for inflation….
“Since this did not impact current enrollees, OPM did not announce the rate change in order to limit the confusion for current FLTCIP enrollees,” said an agency statement on the issue in the form of a Q&A. “Federal family members were and are able to apply for FLTCIP coverage at any time. This is consistent with long-term care insurance industry practice; the new rates are communicated as soon as they become effective. This avoids the potential for individuals to make a rush decision to purchase without full consideration of their needs and the product options.”