The Office of Program Management (OPM) announced on its website for the FLTCP that the closure to new participants will not end this December but will be extended through December 2026. That’s four years of closure after the program’s substantial premium hikes were levied on current enrollees.
Here is a pdf that highlights various aspects of the FLTCIP. The program covers services that you may need if you are unable to care for yourself or family members because of a chronic mental or physical condition. Services include nursing home care, home health care, assisted living facilities, adult day care, and personal or homemaker care. Coverage is provided by LTC Partners, LLC, and is underwritten by the John Hancock Life & Health Insurance Company under contract with OPM.
OPM does not make any contributions to the FLTCIP on your behalf. If you could enroll, you would pay the entire cost of the premiums. Those premiums in the existing arrangement cannot be changed because you’ve gotten older, your health has deteriorated, or any other reason related solely to you unless you request and are approved for a higher level of benefits.
However, the premiums could be increased when it’s determined that the premiums for a particular group of enrollees will be inadequate to cover the projected cost of those benefits.
The FLTCIP, FEGLI, FEDVIP, and FEHB are examples of employee group benefits. Employers offer these benefits to attract and retain top talent and improve employee productivity and engagement. Employee benefits can make up to 30% of an individual’s total compensation package.
Employer group health insurance programs like the FEHB program often have lower premiums than the market for individual plans because the risk is spread across a larger pool of participants, and sometimes, an employer includes contributions.
The cost of a group term life insurance policy like the FEGLI will vary from one employee or member to another, depending on their age and coverage amount. However, group term policies for any given age will almost always be cheaper than an individual term policy.
Group long term care insurance is different. Careful comparison shopping may give you equal or better coverage for less money. An interesting article from the American Association for Long-Term Care Insurance explores that opportunity.
Meanwhile, maximize contributions to your Thrift Savings Plan.
Most long term care insurance policies have a waiting period before their benefits kick in. This waiting period can be between 0 and 90 days or even longer. You will have to cover all expenses during the waiting period, so choose a period you can afford. In most cases, the same waiting period applies to any care you receive, whether in your home, an assisted living facility, or a nursing home.
If you need long term care, you will need a substantial amount of money to tide you over during the waiting period. That can be done today!
