Until the suspension, eligible persons had been allowed apply at any time. OPM hinted that increases in premiums would be needed as well. Image: Panchenko Vladimir/Shutterstock.com
OPM has extended for another two years, through late 2026, the suspension it imposed in late 2022 on new enrollments and requests for increases in existing coverage in the Federal Long-Term Care Insurance Program while a review of that program’s finances continues.
“As with the current suspension period, no applications for FLTCIP coverage will be accepted during the extension period, and current enrollees may not apply to increase their coverage. The enrollment status or benefit eligibility of current enrollees will not change due to the suspension. For those in a claim status, there is no change to coverage and the claims reimbursement process,” says a November 13 Federal Register notice.
“OPM has determined that extending the period of suspension of applications for FLTCIP coverage is in the best interest of the Program. There is ongoing volatility in long term care costs and a diminished insurance market that are undermining the ability to establish benefit offerings with premium rates that reasonably and equitably reflect the cost of the benefits provided,” it says.
In issuing the original suspension, which was due to expire December 19, OPM said it was acting to allow it and the carrier “to assess the benefit offerings and establish sustainable premium rates that reasonably and equitably reflect the cost of the benefits provided.”
OPM further hinted that increases in premiums would be needed, although whether any increases would apply only to future enrollees or to current enrollees as well is to be determined. Both have occurred in prior premium increases.
The FLTCIP program has the lowest enrollment rate among the four government-sponsored insurance programs for federal employees and retirees. Until the suspension, eligible persons had been allowed apply at any time, although coverage was not guaranteed; instead, applicants had to undergo underwriting designed to determine if they would be likely to need to file claims soon.
In its earlier notice, OPM signaled that a potential outcome of the review would be an end to the policy of using only shortened underwriting for newly hired employees and their spouses.
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