Those affected are enrolled in benefit designs called FLTCIP 1.0 and 2.0. Image: nelzajamal/Shutterstock.com
By: FEDweek StaffNovember 9 marks the end of the “enrollee decision period” in the Federal Long-Term Care Insurance Program ahead of premium increases — in many cases steep ones – that will apply otherwise to most enrollees effective in January.
That period allows affected enrollees to instead choose reductions in benefits, such as in daily coverage amounts, in order to keep their premium costs about the same. If they make no choice, the higher premiums will take effect automatically January 1.
Those affected are enrolled in benefit designs called FLTCIP 1.0 and 2.0 — with certain exceptions — many of whom already have experienced the same choice more than once. Individual premium increases and coverage decrease options were outlined in letters sent to them and are in the personal account feature at ltcfeds.com.
Many are eligible to invoke a consumer protection provision that applies when premiums have increased above thresholds — which vary by age — since the date of purchase. That allows them to stop paying premiums and still be entitled to a limited benefit: the greater of the total premiums paid or 30 times the daily benefit amount they had elected. Otherwise there is no paid-up benefit for canceling coverage.
Those who enrolled after October 2019 are in what is called FLTCIP 3.0, which has a less generous set of coverage options, including no option for lifetime coverage and a lower maximum for annual inflation protection. That version also has some features not in the earlier versions, making premiums not directly comparable.
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