The Office of Personnel Management recently announced that Federal Long Term Care Insurance Program (FLTCIP) rates will be increasing no later than the fall of this year.
OPM said the increase is due to several factors, including longer life expectancies, the lower rate of return of the investment in the trust fund of premiums and price increases due to inflation.
OPM awarded a new contract to John Hancock Life and Health Insurance Company to administer the long term care program. John Hancock was the only company that submitted a bid.
The amount by which premiums will be increasing is unknown at this point, however, OPM said they are working with John Hancock wherever possible to offer plan participants different policy options to help offset the rate increases.
Long Term Care Partners, a division of John Hancock that administers FLTCIP, will send every current enrollee a letter prior to the effective date of the premium increases, explaining benefit options that could help offset the higher rates.
