FLTCIP Includes ‘Catastrophic’ Limitation

The Federal Long Term Care Insurance Program includes a “catastrophic coverage limitation” that could limit the duration of the claims the program pays, although the Office of Personnel Management says that chances of that provision being invoked are low. OPM says that while may long-term care insurance programs carry a war or terrorism exclusion that similarly can limit benefits, such a provision was not feasible in the FLTCIP program, given its covered population, which includes military personnel. If a catastrophic event triggers the limitation and the limitation affects a claim, the daily benefit amount would remain the same, but the benefit period would be shortened. Only enrollees who become eligible for benefits as a result of a catastrophic event would be affected; enrollees who file a claim not related to the event are not affected, nor are enrollees who are already on claim at the time.