LTC Coverage Can Be Decreased

Enrollees in the new Federal Long Term Care Insurance Program will be allowed to request a decrease in their coverage at any time, the Office of Personnel Management has said; this option might be of interest to individuals concerned about the cost of the coverage. OPM says that enrollees could decrease to anything that is available under the program, and premiums (which will be based on your original age) will also decrease. For example, if you chose a five-year benefit period, you could decrease to a three-year benefit period. Enrollees would not have to undergo new underwriting in order to decrease coverage. However, the higher premiums paid up to that point would not be credited against future premiums to be paid at the lower rate; the program does not have a “paid-up benefit” feature.