FEDERAL LONG TERM CARE INSURANCE PROGRAM TO SEE A RATE INCREASE DUE TO LONGER LIVES AND LOWER BONDS - July 21, 2016
What’s behind the FLTCIP rate hike? Longer lives and lower bonds
By Carten Cordell, Federal Times
Federal employees enrolled in the Federal Long Term Care Insurance Program got hit with an extreme case of sticker shock this week, when the Office of Personnel Management said that next year’s premiums would rise, by some estimates, up to 83 percent.
The increase—which the National Active and Retired Federal Employees Association estimated to average an extra $111 a month—comes as enrollees are determining their level of coverage ahead of a Sept. 30 deadline for the insurance, which covers health care for beneficiaries with chronic illness, disability or need elder care.
But while the FLTCIP program has seen rates rise for new enrollees before, this year’s hike will affect the more than 274,000 beneficiaries, hurt by longer life expectancies and poor performance from the plan’s actuarial investment portfolio.