On September 7, the Office of Personnel Management (OPM) provided FMA, and other federal employee organizations, with an update on plans for the Federal Long Term Care Insurance Program (FLTCIP). Applications for coverage under FLTCIP were suspended December 19, 2022, to allow OPM and the FLTCIP carrier, John Hancock Life & Health Insurance Company, time to assess the benefit offerings and establish sustainable premium rates that reasonably and equitably reflect the cost of the benefits provided.

Recent analysis of the program’s actual and projected experience concludes that a premium rate increase is needed. The current FLTCIP premiums are not sufficient to meet future projected obligations. Under the extended contract, premium rates will increase for many enrollees effective January 1, 2024. OPM is holding an Enrollee Decision Period for current enrollees from September 11 to November 9, to give them the opportunity to review their current coverage and make decisions that allow them to accept or mitigate the impact of the premium increase.

Normally, most federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives are eligible to apply for insurance coverage under the FLTCIP. However, unless the suspension is ended early, new applications will not be accepted through December of 2025.

OPM released a Benefits Administration Letter regarding FLTCIP on September 11, 2023, which can be read here.

The Federal Long Term Care Insurance Program provides long term care insurance to help pay for costs of care when enrollees need help with activities they perform every day, or have a severe cognitive impairment, such as Alzheimer's disease.

For more information about the FLTCIP, please contact Long Term Care Partners at 1 800-582-3337, or visit the website.