Frequently Asked Questions

The Initial Contract

1. Who did OPM initially contract with?
    
2. Who is Long Term Care Partners?
    
3. Is this like FEHB -- do we choose the company?
    
4. I've read about some insurance companies having financial difficulties. Do I need to worry about the financial strength of John Hancock Life Insurance Company (John Hancock) or Metropolitan Life Insurance Company (MetLife)?
    
5. What if John Hancock and MetLife go bankrupt? What would happen to my coverage?

1. Who did OPM initially contract with?

After the Long Term Care Security Act of 2000 ’s (PL 106-265) passage, the U.S. Office of Personnel Management (OPM) held a competitive bidding process, selecting a consortium formed by John Hancock and MetLife to offer the insurance under the Federal Long Term Care Insurance Program (FLTCIP). John Hancock and MetLife in turn formed Long Term Care Partners, LLC, a new company dedicated to administering the FLTCIP. Long Term Care Partners became a wholly-owned subsidiary of John Hancock on October 1, 2009.

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2. Who Is Long Term Care Partners?

Long Term Care Partners, LLC is a company formed originally by John Hancock Life Insurance Company (John Hancock) and Metropolitan Life Insurance Company (MetLife), dedicated to administering the Federal Long Term Care Insurance Program (FLTCIP).

The FLTCIP is the result of the Long Term Care Security Act (PL 106-265), which was signed into law on September 19, 2000. Long Term Care Partners was awarded the contract on December 18, 2001 following a lengthy bidding and review process.

Long Term Care Partners became a wholly-owned subsidiary of John Hancock on October 1, 2009.

Learn more about Long Term Care Partners.

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3. Is this like FEHB -- do we choose the company?

No, this is not like the FEHB. You do not choose which company you wish to be insured with. MetLife and John Hancock came together as partners to provide this insurance during the initial contract period.

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4. I've read about some insurance companies having financial difficulties. Do I need to worry about the financial strength of John Hancock Life Insurance Company (John Hancock) or Metropolitan Life Insurance Company (MetLife)?

No. Both John Hancock and MetLife are financially strong companies. For more information on either company or to view their financial ratings, see the About John Hancock & MetLife section on this website or visit the John Hancock and MetLife websites.

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5. What if John Hancock and MetLife go bankrupt? What would happen to my coverage?

John Hancock and MetLife have very strong financial ratings. Each company has been in the insurance business for over 100 years, selling long term care insurance for more than 15 years, and other forms of insurance much longer.

OPM continually monitors the companies' performance and will know in advance if there are any threats of financial trouble. OPM's Office of Inspector General performs regular audits, and the Government Accountability Office (GAO) may audit as well.

Most important to understand is the fact that the Program funds, and earnings on those funds, can only be used for administering the Program. The law establishing the Program requires those funds to be maintained and accounted for separately from the funds of all lines of other John Hancock and MetLife business and the funds can be used only for Program expenses. These funds are not available for any other line of business.

If the absolute unthinkable happened and one or both companies were in serious financial trouble, or if OPM determined that selecting a new carrier was in the best interest of our enrollees for some other reason, the segregated funds would simply transfer to the successor insurance company(ies) chosen by OPM. There would be little or no impact on the enrollees.

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