OPM Rejects Requested Changes to LTC Insurance Program

The Office of Personnel Management has rejected several changes recommended by individuals who commented on draft rules governing certain aspects of the Federal Long Term Care Insurance Program. For example, some commenters requested that OPM change the policy that the carrier—LTC Partners—determines the insurability of applicants and that that decision may not be appealed to OPM. However, OPM said that it reads the underlying law as preventing that change, since it states that coverage is not guaranteed. Said OPM in its response, “Our intent in administering this program is to offer coverage to eligible individuals but also to maintain competitive premiums. To guarantee coverage to all eligible individuals or all members of the workforce, regardless of their health, would require significantly higher premiums than are now being charged. This could jeopardize the viability of the program as the more healthy individuals may choose to purchase their coverage elsewhere.”