OPM Projects Cost Increase for FLTCIP

OPM projects that premiums for most enrollees in the FLTCIP long-term care insurance program will increase in the fall under a new seven-year contract for the program. Coverage once again will be offered through a John Hancock company subsidiary that has underwritten the program since its inception in 2002; it was the only bidder on expiration of the 2009-2016 contract. Premiums for most types of coverage increased when the prior contract expired and at the time current enrollees could choose between keeping the same level of benefits at a higher cost or keeping the costs about the same by reducing benefits. OPM has said it plans to allow similar changes again. The last time, OPM called the opportunity a special election period–not an open season, since that term has a particular meaning in the FLTCIP program: in an open season, active employees (although not retirees or other eligible persons) may enroll using only a shortened underwriting form rather than the regular one that asks more questions about their health. The short form normally applies only to newly hired employees, although it was also used during the initial open season when the program was first created in 2002, and again in 2011 when an open season was offered after the program was opened to same-sex domestic partners who meet certain standards. The program later was opened to opposite-sex partners as well, but there was no open season due to that change.