FEDweek

Notices of FLTCIP Premium Hikes Going Out

Long-term care insurance information, form and stethoscope.

Notices have started going out, and will continue to over the upcoming days, to most enrollees in the FLTCIP long-term care insurance program telling them the size of the premium increase they face and giving them several options in response. OPM in the spring had signaled that a premium increase was on the way, as it issued a new seven-year contract to a John Hancock company subsidiary. OPM at the time did not specify how large the increases would be or when they would hit. The latter question has now been answered—November 1—and the answer to the former is that the average premium increase will be about 80 percent—in dollar terms, an average hike above $100 a month. For some, the increase will be steeper; the exact amount depends on the individual’s age at purchase and the benefit levels chosen. That is being specified in the notices being sent out for an “enrollee decision period” that has started and will continue through the end of September. The size of the increases took enrollees by surprise and already has spurred several members of Congress to ask OPM for a detailed explanation. Those who have enrolled since last August–when premiums increased for new enrollees, but not previous enrollees–will continue to pay at current rates, as will future new enrollees.