Were you planning to sign up for the federal long term care insurance but haven’t quite gotten around to it yet?
If so, waiting around may have cost you some money.
According to the Office of Personnel Management (OPM): “The U.S. Office of Personnel Management (OPM) and John Hancock Life & Health Insurance Company (the program’s insurer) have determined that premium rates for new applicants under the Federal Long Term Care Insurance Program (FLTCIP) should change to ensure they are adequate to cover projected benefits for new enrollees.”
In plain English, this means rates for the long term care insurance are going up.
But, if you are already enrolled in the long term care insurance program, there is good news. Your rates are staying the same. Again, according to OPM: “The new premium rates are effective August 1, 2015 for applicants who apply for FLTCIP coverage on or after that date. The new premium rates do not apply to current FLTCIP enrollees.”
One other wrinkle though: insurance quotes issued prior to the new premium rates were only valid until July 31, 2015. So, if you received an insurance quote for long term care insurance, but did not actually enroll in the plan, you will be paying the higher rates.
