No Guarantees Against Future Rate Increases

Another concern being expressed by potential enrollees in the FLTCIP is the potential for increased premiums at the end of the current seven-year contract with the carrier, LTC Partners, a partnership of MetLife and John Hancock. OPM says it “cannot guarantee” that premiums won’t increase at that point. However, it says that any increase would require OPM approval and that it “intends these premiums to be level for life.” It adds that there is an exception to the level premium feature: for those who choose the “future purchase option” form of inflation protection, coverage levels and premiums will increase every two years unless the individual declines the increases.