Premium Hikes, Other Changes Coming to FLTCIP

Several benefit changes are ahead in the FLTCIP long-term care insurance program, in light of a new contract award in the program following the expiration of the original seven-year term. The program will be continued to be administered by LTC Partners, but one of the original providers, MetLife, has dropped out and the program will now be provided only by the other, John Hancock. OPM said the newly issued seven-year contract provides for benefit changes including increased home health care reimbursement, new benefit periods, higher daily benefit amounts, and increased payment limits on informal care provided by family members. Premium rates will remain the same for current enrollees who took the future purchase option for inflation protection–which essentially gives enrollees the choice to buy inflation protection at a higher cost–but rates for those with automatic inflation protection will increase between 5 and 25 percent depending on age, OPM said.