Frequently Asked Questions

The Contract

1. Who is OPM contracting with?
    
2. Who is Long Term Care Partners?
    
3. Is this like FEHB -- do we choose the company?
    
4. How long is OPM's contract with LTC Partners? What happens when the contract term ends?
    
5. 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)?
    
6. What if John Hancock and MetLife go bankrupt? What would happen to my coverage?

1. Who is OPM contracting with?

OPM has contracted with two of the premier long term care insurance companies - John Hancock Life Insurance Company (John Hancock) and Metropolitan Life Insurance Company (MetLife). John Hancock and MetLife have partnered to form Long Term Care Partners, LLC (also known as LTCP), an organization that is devoted exclusively to the Federal Family.

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2. Who Is Long Term Care Partners?

Long Term Care Partners, LLC is a company formed by John Hancock Life Insurance Company (John Hancock) and Metropolitan Life Insurance Company (MetLife), devoted exclusively to the Federal Family.

The Federal Long Term Care Insurance Program 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.

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 have come together as partners to provide this insurance.

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4. How long is OPM's contract with Long Term Care Partners? What happens when the contract term ends?

The initial contract is for 7 years. By law, OPM cannot automatically renew the contract with Long Term Care Partners.

OPM continually evaluates the performance of Long Term Care Partners against annual performance goals. Before the 7 years ends, an extensive review of Long Term Care Partners and the industry will be conducted. OPM will then determine whether it is in the best interest of enrollees to renew the current contract.

If the answer is yes, OPM will renew the contract for another 7 years. If the answer is no, OPM will issue a new Request for Proposals and choose a new contractor.

This process should be seamless to the enrollees. If there is a new contractor, the new contractor will automatically assume the responsibilities for the current enrollees and in the interim Long Term Care Partners would stay on until the transition to the new contractor is complete.

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5. 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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6. 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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