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The New Contract
FLTCIP Premium Rate Increase
Premiums will increase for some enrollees, and those enrollees will have choices to avoid an increase.  This premium increase does not affect current enrollees with the Future Purchase Option (FPO). The deadlines for FPO enrollees have not changed: the decision deadline is December 14, 2009, and the effective date is January 1, 2010. But you do not have to wait to receive your letter. Just log in to your personal account (or create one) at www.LTCFEDS.com. Look for Enrollee Login at the top right. Click on that link, and you’ll see the links to log in or to register, if you haven’t already set up an account. You can view your current coverage, and if you are in the group affected by the premium increase you will be able to view your personalized options. [ Back to FLTCIP Premium Rate Increase FAQs ]
The goal in establishing the premium rates is to calculate rates that will be sufficient to pay claims plus expenses, now and over the future lifetime of enrollees. Calculating premiums requires using a series of assumptions which quantify the risk that certain things will happen in the Program over the course of time. [ Back to FLTCIP Premium Rate Increase FAQs ] All of the premiums collected for the FLTCIP go into an account that is held by the insurer just for the FLTCIP. The insurer(s) cannot use this account for anything except the FLTCIP. This account is called an Experience Fund. The only sources of money for the Experience Fund are the premiums that are collected from participants and the Fund’s investment earnings. Money in the Experience Fund can only be used to pay claims and cover expenses and fees for the FLTCIP. The assumptions for projecting future experience and the value of the Experience Fund are monitored by OPM and the insurance carrier(s) to evaluate whether the Fund, along with future premiums and investment income, is adequate to pay expected claims, expenses and fees over the course of time. If the Fund has enough money to cover the Program’s expected needs, no corrective action is needed. If the Fund is not adequate, analysis is done to determine which plan designs and age groups may need rate adjustments. [ Back to FLTCIP Premium Rate Increase FAQs ]
Some of the key assumptions that were used in developing premium rates in the first contract period that were intended to be conservative and were consistent with industry practices at the time, turned out to be inaccurate for the FLTCIP. In particular, enrollee persistency has been higher than expected. This means that more people than expected are keeping their coverage (rather than voluntarily canceling it) and people are living longer than expected when the initial rates were set. Investment experience has been worse than expected. Even if overall trends improve, experience is unlikely to match the underlying assumptions used in the original pricing. Based on revised assumptions (which are derived from an analysis of actual experience), in order to assure that there is enough money in the Experience Fund to cover the claims and costs that are now expected to be incurred over the course of time, it is necessary to adjust the premium rates for certain plan designs and age groups. [ Back to FLTCIP Premium Rate Increase FAQs ]
As part of the competitive procurement process, OPM hired an independent actuarial consultant to review the offers received. The actuarial consultant determined that a rate increase was necessary. [ Back to FLTCIP Premium Rate Increase FAQs ]
The changes to many long term pricing assumptions have a larger impact on plans with automatic inflation increases and on younger issue ages because there is a greater degree of pre-funding for these groups. Changes in assumptions about annual investment returns, mortality rates and enrollee lapses have the greatest effect when applied over a long period of time. [ Back to FLTCIP Premium Rate Increase FAQs ]
The revised premium rates are intended to adequately position the Experience Fund to cover all future claims and expenses for FLTCIP enrollees. While we cannot guarantee that the premium rates will always remain the same, we do know that a rate increase is a serious event for all stakeholders - plan enrollees, OPM, and the insurance carrier(s). A future rate increase would only be implemented if deemed necessary to assure the adequacy of the Experience Fund. [ Back to FLTCIP Premium Rate Increase FAQs ]
No. We do not expect enrollees in FLTCIP 1.0 to be more or less likely than enrollees in FLTCIP 2.0 to be in a group whose premium may be determined to be inadequate in the future. The differences between the premium rates for FLTCIP 1.0 and the premium rates for FLTCIP 2.0 are based on plan design differences. There is one Experience Fund which receives all premium and investment income from both FLTCIP 1.0 and FLTCIP 2.0, and from which all claims, fees and expenses are paid for both plans. [ Back to FLTCIP Premium Rate Increase FAQs ] How to Avoid the Premium Increase
As announced by the U.S. Office of Personnel Management, FLTCIP premiums will increase for current enrollees with the Automatic Compound Inflation Option (ACIO) whose age at purchase was 69 or younger AND who choose to keep the same coverage they have now. 
Enrollees who make this change keep their current DBA, or receive a slightly higher DBA, and still keep their premiums about the same as they pay now. Some enrollees are being offered a higher DBA because the downgrade to 4% ACIO reduces their premiums below what they currently pay. Therefore, their offered selection may increase their DBA in order to bring the premium to about what they pay now. Enrollees do not need to choose this option. If they wish, they can request to keep their DBA the same as it is now and accept the reduced premiums for downgrading to 4.0% ACIO.     Other options besides the ones shown here will be available. For example, enrollees whose DBA would increase in the downgrade to the 4% ACIO could instead elect to keep their current DBA unchanged (with the 4% ACIO) and pay a slightly lower premium than they do now. Or, someone with an unlimited benefit period may decide to keep the 5% ACIO but reduce to a 5 year benefit period. Such choices would be available by calling 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557) or visiting www.LTCFEDS.com. [ Back to How To Avoid The Premium Increase FAQs ] New Contract
The U.S. Office of Personnel Management (OPM) awarded the new contract to John Hancock Life & Health Insurance Company as the sole contractor, after a competitive procurement process.
Due to procurement rules, OPM cannot release the number of and names of other offerors.
By law, the term of the FLTCIP contract is seven years. On May 1, 2009, OPM awarded the second seven-year Federal Long Term Care Insurance Program contract to John Hancock Life & Health Insurance Company.
OPM issued a request for proposals in August 2008 for the next FLTCIP seven-year contract term. Current Enrollees
Starting in mid-October and staggered over a few weeks, Long Term Care Partners sent a mailing to enrollees that contains a letter and an options form with specific information about your current coverage and the opportunity to change to new benefit options on a guaranteed-acceptance basis (meaning you are automatically approved as long as you are not in your waiting period or currently receiving benefits). [ Back to Current Enrollees FAQs ]
All enrollees who are subject to a rate increase will have the option to keep their premium approximately the same as it is now by downgrading from the 5% to 4% Automatic Compound Inflation Option (ACIO). Making this change will cause the enrollee’s daily benefit amount (DBA) to increase more slowly—by 4% per year rather than 5%. For some enrollees, depending on their age, their daily benefit amount will actually increase slightly, as a starting point, in order to keep premiums approximately the same as they are now. More information on this option, and other choices available, will be included in the mailings this fall to those affected. If you would like to read a few examples of how this change from 5% to 4% would work, click here. [ Back to Current Enrollees FAQs ]
As with other insurance products, you cannot receive a refund of FLTCIP premiums because the premiums you have paid provided insurance coverage for you all along. At any point since your original purchase, if you had been eligible for benefits and had satisfied your waiting period, you would have received benefits. [ Back to Current Enrollees FAQs ]
You do not need to undergo underwriting (i.e., answer questions about your health) to keep or reduce your current benefits. As noted on the Personalized Options Form in the enrollee options package, you will have an opportunity to move to new benefit options on a guaranteed-acceptance basis (meaning that you are automatically approved as long as you are not in your waiting period or currently receiving benefits). However, if you wish to increase the overall value of your benefits, underwriting may be required. [ Back to Current Enrollees FAQs ]
The Personalized Options Package is a mailing that Long Term Care Partners and John Hancock sent to enrollees in the Federal Long Term Care Insurance Program in October 2009. It contains a letter and an options form with specific information about your current coverage and the opportunity to change to new benefit options on a guaranteed-acceptance basis (meaning you are automatically approved as long as you are not in your waiting period or currently receiving benefits). You will be able to: [ Back to Current Enrollees FAQs ]
Yes. [ Back to Current Enrollees FAQs ]
Enrollees with the Future Purchase Option are not affected by the upcoming premium increase that applies only to enrollees with ACIO who purchased their coverage before age 70. ACIO enrollees must weigh whether to take the premium increase or downgrade their coverage to avoid the increase, which is a decision that may need more analysis. Click here to see why the premium increase affects ACIO enrollees but not FPO enrollees. [ Back to Current Enrollees FAQs ]
January 1, 2010. That is true even if you submit your selection between January 1 and February 15. Depending on when you submit your selection, the coverage change may be retroactive. Of course, if you decide to keep your current coverage and make no changes, your current coverage simply continues. [ Back to Current Enrollees FAQs ]
If you have the Future Purchase Option (FPO), and your selection results in a premium increase, your new premium rate is effective January 1, 2010. [ Back to Current Enrollees FAQs ]
If you decrease your coverage during this time, but we receive your selection after January 1, 2010, it may be too late for us to adjust your January and/or February 2010 billing. However, the premium decrease will still be effective January 1, 2010. We will adjust the billing retroactively by crediting your account or refunding you any higher premium amount you may have already paid for January and/or February 2010. [ Back to Current Enrollees FAQs ]
If you have the Future Purchase Option (FPO) and do not respond by December 14, 2009, you will keep your current coverage under FLTCIP 1.0 and receive the scheduled FPO benefit increase with a corresponding increase in your premium, effective January 1, 2010. [ Back to Current Enrollees FAQs ]
Please call our Customer Service Center at 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557) Monday through Friday from 8:00 a.m. to 7:00 p.m. Eastern time. Or, visit www.LTCFEDS.com/SecureEmail/ to contact us via email. Please notify us immediately if you are unable to meet the deadline. [ Back to Current Enrollees FAQs ]
FLTCIP 2.0, introduced on October 1, 2009, provides some enhanced features and benefits such as: [ Back to Current Enrollees FAQs ]
Yes. Under FLTCIP 2.0, there is no limit to how many times you can decline the FPO offer. You do not need to provide evidence of insurability to receive or accept offers. However, under FLTCIP 2.0 if you wish to change to the Automatic Compound Inflation Option, you must provide evidence of insurability. [ Back to Current Enrollees FAQs ]
It depends. For a limited time, we are offering you a personalized option to change to a specific benefit level in FLTCIP 2.0 on a guaranteed-acceptance basis (meaning you are automatically approved as long as you are not in your waiting period or currently receiving benefits). That option is outlined on your Personalized Options Form. [ Back to Current Enrollees FAQs ]
Yes. However, you may be subject to additional underwriting and/or a higher premium. [ Back to Current Enrollees FAQs ]
If you are not satisfied with the new coverage, you may return to your prior coverage within 30 days after you receive the FLTCIP 2.0 Benefit Booklet by notifying Long Term Care Partners by mail: Long Term Care Partners, P.O. Box 797, Greenland, NH 03840-0797. [ Back to Current Enrollees FAQs ]
Yes. If you want to keep your current coverage, you do not need to return your Personalized Options Form to us. However, please know that if you do keep your current coverage and you are in the group affected by the premium increase, your premiums will increase effective March 1, 2010. [ Back to Current Enrollees FAQs ]
Yes. But, you may wish to take advantage of your biennial FPO offer, outlined on your Personalized Options Form. [ Back to Current Enrollees FAQs ]
At any time, you may request changes not indicated on your Personalized Options Form, but some changes may require underwriting and/or a higher premium. If you wish to make changes not indicated on your Personalized Options Form, please call our Customer Service Center at 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557) Monday through Friday from 8:00 a.m. to 7:00 p.m. Eastern time. Or, visit www.LTCFEDS.com/SecureEmail/ to contact us via email. [ Back to Current Enrollees FAQs ]
Please click on the following link and follow the instructions: www.LTCFEDS.com/RegisterNow/ [ Back to Current Enrollees FAQs ]
Please click on the following link and follow the instructions: www.LTCFEDS.com/password/ [ Back to Current Enrollees FAQs ]
Our Customer Service Center is available Monday through Friday from 8:00 a.m. to 7:00 p.m. Eastern time. The number is 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557). Or, visit www.LTCFEDS.com/SecureEmail/ to contact us via email. [ Back to Current Enrollees FAQs ]
If you have the ACIO, online submission is the fastest and easiest way to submit your personalized option selection. To do this, log in to your FLTCIP online account at www.LTCFEDS.com/myaccount/, where you will find a link to select your option. If you do not have an online account, you may register for one at www.LTCFEDS.com/RegisterNow/ and then select your option. [ Back to Current Enrollees FAQs ]
Mail the form to Long Term Care Partners, P.O. Box 797, Greenland, NH 03840-0797. You may also fax the form to 866-921-4513. [ Back to Current Enrollees FAQs ]
No. All inquires must go to the Program administrator, Long Term Care Partners, at 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557) Monday through Friday from 8:00 a.m. to 7:00 p.m. Eastern time. Or, visit www.LTCFEDS.com/SecureEmail/ to contact us via email. [ Back to Current Enrollees FAQs ]
It will depend on our determination of when you were eligible for benefits, so please call our Customer Service Center at 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557) Monday through Friday from 8:00 a.m. to 7:00 p.m. Eastern time. If you are eligible for benefits, you cannot increase your coverage. Any requested increase would not take effect. You can decrease coverage at any time. [ Back to Current Enrollees FAQs ] Product Comparison: FLTCIP 1.0 vs. FLTCIP 2.0
COVERED SERVICES 1. I noticed that FLTCIP 2.0 doesn’t offer the Facilities-Only Plan. Why not? The Facilities-Only Plan offers coverage only for care in a facility such as an assisted living facility or a nursing home. It does not cover home care. [ Back to Product Comparison FAQs ] If you are in a nursing home, an assisted living facility, or a hospice facility and you leave the facility temporarily (for example, you need acute care in a hospital for a few days), that facility may charge you to hold your bed until you return. The FLTCIP bed reservation feature covers the cost of holding a space in the facility. [ Back to Product Comparison FAQs ] The stay-at-home benefit is designed to enable enrollees who are in need of long term care services to stay at home for as long as possible. Benefits paid under the stay-at-home benefit do not reduce your
maximum lifetime benefit and are payable up to 30 times your
daily benefit amount. [ Back to Product Comparison FAQs ] Benefits provided under the stay-at-home benefit must be included in your plan of care, which must be approved by your Long Term Care Partners’ care coordinator. [ Back to Product Comparison FAQs ] 5. Why are you offering higher daily benefit amounts under FLTCIP 2.0? FLTCIP 2.0 offers higher daily benefit amounts to keep pace with the rising costs of long term care. In 2002, the average cost of a semiprivate room in a nursing home was $143/day7. In 2008, that average increased to $183/day3. Additionally, in some states, the costs of care can be very high, so daily benefit amounts that are adequate to support the costs in those states must be available. [ Back to Product Comparison FAQs ] Current enrollee elections haven’t shown a preference for $25 increments. $50 increment elections have been the norm. With the addition of a number of higher daily benefit amounts, FLTCIP 2.0 has therefore been designed to offer eight $50 daily benefit amount increments ranging from $100 to $450. [ Back to Product Comparison FAQs ] During the initial contract period, very few FLTCIP enrollees chose a $50 daily benefit amount (DBA). Because of this, it was removed from the available choices in FLTCIP 2.0. However, enrollees who currently have a $50 DBA can keep that DBA, unless they voluntarily choose to change it. [ Back to Product Comparison FAQs ] OPM requested a home health care benefit at up to 100% of the daily benefit amount for FLTCIP 2.0. This had been requested in the past by enrollees and applicants. As many of our current claimants have utilized home health care, offering reimbursement of home health care expenses at up to 100% of the daily benefit amount enhances the value of the FLTCIP, giving claimants more flexibility in the amount of home health care they can receive on any given day. [ Back to Product Comparison FAQs ] OPM requested this change to help simplify the application process. Relatively few people chose this option under FLTCIP 1.0. [ Back to Product Comparison FAQs ] 10. How does a calendar day waiting period work? In a calendar day waiting period (in FLTCIP 2.0), once an enrollee is certified as being benefit eligible, the waiting period begins. The enrollee does not have to receive long term care services during the waiting period (as they do for a service day waiting period). FLTCIP benefits are not paid during the waiting period, with a few exceptions. [ Back to Product Comparison FAQs ] OPM requested this change. Program claim experience to date has shown that for persons receiving care at home during the waiting period, a 90 calendar day waiting period can often be comparable to a shorter service day waiting period because home care is generally not received every day of the week. Additionally, a 90 calendar day waiting period provides for lower premiums than a 30 service day waiting period. However, enrollees who currently have a 30 service day waiting period can keep it under FLTCIP 1.0, unless they voluntarily choose to change it. [ Back to Product Comparison FAQs ] No. You only need to satisfy the waiting period once. This is also true of the service day waiting period under FLTCIP 1.0. [ Back to Product Comparison FAQs ] 13. If I change to FLTCIP 2.0 with the Future Purchase Option (FPO), will I get an FPO increase this year? No. If you change to FLTCIP 2.0, you are effectively replacing your existing coverage and you will not receive the FPO increase on January 1, 2010. You will be eligible for the next FPO offer in the fall of 2011. [ Back to Product Comparison FAQs ] 14. If I change to FLTCIP 2.0, are my premiums based on my age now or when I first enrolled? The rate you pay will take into account the fact that you paid premiums under the original benefit structure. It will be lower than the rate based on your current age, but higher than the rate based on the age you were when you first applied for coverage. [ Back to Product Comparison FAQs ] We stopped accepting applications for FLTCIP 1.0 on September 30, 2009. Eligible qualified relatives can apply for coverage under FLTCIP 2.0. It does not matter that you do not have FLTCIP 2.0. Each person applies individually. [ Back to Product Comparison FAQs ] You can apply for an increase in coverage at any time, including a change from FLTCIP 1.0 to FLTCIP 2.0. Please keep in mind that if you make your request outside of the decision period (described in letters mailed to enrollees in the fall of 2009), you may be subject to additional underwriting and/or a higher premium. [ Back to Product Comparison FAQs ] New Applicants 1. Can eligible individuals still apply for FLTCIP coverage? Yes, as of October 1, 2009, the FLTCIP will accept applications for the new benefit structure, FLTCIP 2.0. For information on FLTCIP 2.0, click here. To apply for coverage, click here. [ Back to New Applicants FAQs ]
We expect to hold a FLTCIP Open Season for all individuals eligible to apply in late 2010. However, eligible individuals may apply for coverage under the FLTCIP at any time with medical underwriting. [ Back to New Applicants FAQs ]
Current enrollees will receive a Personalized Options Form detailing their choices for making adjustments to their coverage under FLTCIP 1.0 or moving to FLTCIP 2.0. The mailings began in mid-October and are being staggered over several weeks, so enrollees will not all receive their letters at the same time. Benefit changes current enrollees make to their coverage as a result of the personalized options will be effective on January 1, 2010. For information on when new premium rates are effective, see the Decision Period FAQs. [ Back to Benefit Changes FAQs ]
The new benefit structure, called FLTCIP 2.0, includes:
Benefits for enrollees in the original benefit structure, called FLTCIP 1.0, do not change to this new benefit structure unless that enrollee chooses to change benefits. [ Back to Benefit Changes FAQs ]
The new benefits (called FLTCIP 2.0) became available on October 1, 2009, for new applicants. [ Back to Benefit Changes FAQs ]
Yes. FLTCIP 2.0 includes a number of benefit enhancements. Consequently, premiums for FLTCIP 2.0 will be higher than premiums for FLTCIP 1.0. [ Back to Benefit Changes FAQs ]
It depends. Applicable premiums will change depending on the choice you make (for more information, click here if you have the Future Purchase Option, and click here if you have the Automatic Compound Inflation Option). You will receive detailed information about your options before any premium changes take effect. Please read all of these questions and answers to understand how premiums will be handled. [ Back to More on the Premium Increase FAQs ]
If they have the Future Purchase Option, they will see a premium increase if they accept the inflation offer. If they decline the inflation offer and make no other changes to their benefits, there will be no change in their premium. [ Back to More on the Premium Increase FAQs ]
You have the option to downgrade your coverage at any time, including changing from the Automatic Compound Inflation Option to the Future Purchase Option. You have other options for avoiding the premium increase; see your Personalized Options Form. [ Back to More on the Premium Increase FAQs ]
The rate you pay will take into account the fact that you paid premiums under the original benefit structure. It will be lower than the rate based on your current age, but higher than the rate based on the age you were when you first applied for coverage. [ Back to More on the Premium Increase FAQs ]
No. Premiums were set with the expectation that the rates would be sufficient over the lifetime of the enrollee, but they were not guaranteed. [ Back to More on the Premium Increase FAQs ]
No. Premiums are set with the expectation that the rates will be sufficient over the lifetime of the enrollee, but rates are not guaranteed. [ Back to More on the Premium Increase FAQs ] Premiums can increase if you are among a group of enrollees whose premium is determined to be inadequate and both OPM and John Hancock agree to the rate change. Premiums can become inadequate if program experience or revised assumptions differ from the assumptions used to establish the premium rates. For example, if actual investment returns or revised projected investment returns are lower than the assumptions used to set the premiums, rates may need to change. Premiums also increase every two years for enrollees who chose the Future Purchase Option and do not decline the offer to increase their benefits. [ Back to More on the Premium Increase FAQs ]
Because this is a Federal program established under Federal law, the states play no role in approving rates or otherwise regulating the insurance coverage. [ Back to More on the Premium Increase FAQs ]
We regret that premium increases are necessary. However, certain assumptions used when the original premiums were set are no longer sufficient, including the long term return on Program investments and other factors such as persistency (the number of people who enroll and continue to remain insured). The premium increase is needed so that sufficient funds will be available to pay benefits to enrollees in the future. [ Back to More on the Premium Increase FAQs ]
Inflation experience did not cause the announced premium increase. In the seven years since the Program began, benefits for the Automatic Compound Inflation Option (ACIO) policies have increased by as much as 41% to protect against inflation. [ Back to More on the Premium Increase FAQs ]
No, premiums do not automatically change in 2016 when the contract term ends. There are no plans today to change the current premiums again, either during this contract term or in 2016. The premiums are set with the expectation that the rates will be sufficient over the lifetime of the enrollee. However, premium rates may change in the future if necessary to reflect the cost of the benefits provided. OPM and John Hancock will continually monitor program experience to ensure premiums are sufficient and will only agree to change them if necessary to make sure sufficient funds will be available to pay benefits to enrollees in the future. [ Back to More on the Premium Increase FAQs ]
No. The need for a premium increase is not related to the awarding of a new contract. A premium increase would have been needed even if OPM did not award a new FLTCIP contract. [ Back to More on the Premium Increase FAQs ]
The Information Kit and Benefit Booklet state that "We may only increase your premium if you are among a group of enrollees whose premium is determined to be inadequate." OPM and John Hancock agree that the announced premium adjustment is necessary so that the rates will be sufficient to reflect the cost of the benefits provided, as required by FLTCIP law. [ Back to More on the Premium Increase FAQs ]
Yes. [ Back to More on the Premium Increase FAQs ]
All enrollees who are subject to a rate increase will have the option to keep their premium approximately the same as it is now by downgrading from the 5% to the 4% Automatic Compound Inflation Option (ACIO). Making this change will cause the enrollee’s daily benefit amount (DBA) to increase more slowly—by 4% per year rather than 5%. For some enrollees, depending on their age, their daily benefit amount will actually increase slightly, as a starting point, in order to keep premiums approximately the same as they are now. If you would like to read a few examples of how this change from 5% to 4% would work, click here. [ Back to More on the Premium Increase FAQs ]
As with other insurance products, you cannot receive a refund of FLTCIP premiums because the premiums you have paid provided insurance coverage for you all along. At any point since your original purchase, if you had been eligible for benefits and had satisfied your waiting period, you would have received benefits. [ Back to More on the Premium Increase FAQs ]
OPM has always monitored the overall health and viability of the Program. The initial premium rates were set using assumptions that were conservative at the time but are no longer sufficient. As a result, certain premiums must be increased to reflect the cost of the expected benefits. OPM and John Hancock believe it would be irresponsible not to increase premiums at this time. [ Back to More on the Premium Increase FAQs ]
About 225,000. [ Back to More on the Premium Increase FAQs ]
No. The issue of pricing adequacy is not related to the number of enrollees in the Program. [ Back to More on the Premium Increase FAQs ]
Enrollees with the ACIO receive a 5% compounded increase to their benefits each year, but their premiums do not go up because of that benefit increase. Because ACIO enrollees are prefunding their future benefit increases, changes in certain assumptions have a larger effect on the amount of funds needed in advance to support the expected level of future benefits.(Why are premiums for current enrollees increasing?) [ Back to More on the Premium Increase FAQs ]
We had no expectation at that time that the rates would increase. The materials in the application packages and the Benefit Booklet have always stated when rates can be increased. (Why are premiums for current enrollees increasing?) [ Back to More on the Premium Increase FAQs ]
After an in-depth analysis of assumptions and actual results, we believe it is necessary to raise premiums to ensure that the FLTCIP can meet its future claims obligations. Some of the factors used in pricing have a greater impact as you project farther into the future; in particular the assumptions for enrollee persistency (the number of people who enroll and continue to remain insured) and return on Program investments. [ Back to More on the Premium Increase FAQs ]
Long Term Care Partners will continue as the program administrator. [ Back to Program Administration FAQs ]
Long Term Care Partners. You can reach them at 1-800-582-3337 (TTY 1-800-843-3557), through secure email at www.LTCFEDS.com and through non-secure email at info@ltcpartners.com. [ Back to Program Administration FAQs ]
As a leader in the long term care (LTC) insurance industry, John Hancock is known for its financial strength, stability, and expertise. Today, John Hancock has over one million LTC insurance clients, not including the FLTCIP. With more than 145 years of insurance experience, John Hancock is one of the most financially sound carriers, maintaining some of the highest independent ratings for financial strength and stability in the industry today.* Please see current ratings below: [ Back to Program Administration FAQs ]
The John Hancock family of companies is in the process of realigning some of its legal entities. By way of background, John Hancock became part of Manulife Financial Corporation in 2004. As is often the case when combining large organizations, they now have an excess of legal entities and are realigning them to streamline operations and better position the company for future growth. As a result, it is anticipated that John Hancock Life Insurance Company will merge into another John Hancock entity, pending regulatory approval. Therefore, all their new group long term care insurance contracts are being underwritten by John Hancock Life & Health Insurance Company. Please be assured that this change in companies will not affect the value of your long term care insurance coverage under the Federal Long Term Care Insurance Program (FLTCIP) in any way. John Hancock Life & Health Insurance Company maintains the same financial strength and claims paying ability ratings as all other John Hancock insurance companies. [ Back to Program Administration FAQs ]
The only sources of funding for the FLTCIP are enrollees' premiums and the investment earnings on those premiums. By law, enrollees pay 100% of all FLTCIP premiums. FLTCIP premiums are held by the Program's insurer(s) in an Experience Fund, which is separate from their other assets. That means that FLTCIP funds are not available to the insurers for any other purposes except to cover FLTCIP costs. [ Back to Program Administration FAQs ]
You will not be affected by this premium rate increase while you have a claim pending. Your coverage remains unchanged. You will not be able to change your coverage while your claim is pending.
If your claim is closed and you were not approved for benefits, you will receive a Personalized Options Form outlining any increase in your premiums and your options for changing coverage, just as if you never submitted a claim. The mailings began in mid-October and are being staggered over several weeks, so enrollees will not all receive their letters at the same time. See Question 1 under Premium Changes for information about which current enrollees will be affected by the rate increase.
You will not be affected by this premium rate increase while you are eligible for benefits. Your coverage remains unchanged. You will not be able to change your coverage while you are eligible for benefits.
When you recover, we will send you detailed information about any increase to your premiums and your options for changing your coverage. See Question 1 under Premium Changes for information about which current enrollees will be affected by the rate increase.
Yes, the offers will be the same. To see some of the new benefit options, see Question 2 under Benefit Changes.
The letter you receive will contain the deadline for making changes, and the date the increase in your premiums (if any) will take effect. Your benefits will not change unless you choose to make changes.
You will not need to undergo underwriting (i.e., answer questions about your health) to keep or reduce your current benefits. You will also have a one-time opportunity to move to new benefit options without underwriting. However, if you wish to increase the overall value of your benefits, underwriting may be required.
It depends. Any days credited toward your waiting period on FLTCIP 1.0 will be transferred to FLTCIP 2.0. If the number of days transferred is 90, then you would immediately meet the waiting period on FLTCIP 2.0. If the number of days transferred is less than 90, you would still need to meet the remainder of the 90 days on FLTCIP 2.0.
If you were deemed eligible for benefits prior to your new coverage effective date, your FLTCIP 1.0 coverage will be reinstated, and your claim will be processed according the terms outlined in your Benefit Booklet. Any premiums paid under FLTCIP 2.0 will be applied to your FLTCIP 1.0 coverage.
No. This premium rate increase does not apply to the Alternative Insurance Plan (the 2 year, nursing home only plan). [ Back to Alternative Insurance Plan FAQs ]
No. The new benefit options are not available to enrollees with the Alternative Insurance Plan (the 2 year, nursing home only plan). [ Back to Alternative Insurance Plan FAQs ]
If you are currently enrolled in the Alternative Insurance Plan and have a weekly benefit amount of $500, you were mailed a letter outlining the opportunity to accept or decline an increase in benefits (and a corresponding increase in premiums), as outlined in your Benefit Booklet. [ Back to Alternative Insurance Plan FAQs ]
Enrollees in the Alternative Insurance Plan who have a weekly benefit amount of $500 are being provided this Future Purchase Option (FPO) to increase benefits as their first scheduled offer. The FPO feature provides for an automatic increase in benefits every two years on January 1, with a corresponding increase in premiums. [ Back to Alternative Insurance Plan FAQs ]
Nothing. The increase will automatically take effect on January 1, 2010. The letter will serve as confirmation of the increase. Please keep it with your Benefit Booklet and Schedule of Benefits. [ Back to Alternative Insurance Plan FAQs ]
To decline the increase, you must complete the response form (included with your letter) and mail it to Long Term Care Partners, P.O. Box 797, Greenland NH, 03840-0797, or fax it to 1-800-855-9644. [ Back to Alternative Insurance Plan FAQs ]
Please call us at 1-800-582-3337. We would be happy to provide you with another letter or discuss this opportunity with you. [ Back to Alternative Insurance Plan FAQs ]
You will always have the choice of declining the offers. However, if you decline a total of three Alternative Insurance Plan FPO offers, you will not receive any additional offers unless you provide to us, at your expense, evidence of your good health that is satisfactory to us. [ Back to Alternative Insurance Plan FAQs ]
The Alternative Insurance Plan FPO increase for 2010 is based on the Consumer Price Index (CPI) for Medical Care (CPI-M). The CPI for Medical Care measures costs associated with technology, lifesaving medical equipment, complex procedures performed by specialists, prescription drugs, and malpractice insurance premiums. [ Back to Alternative Insurance Plan FAQs ]
Unless you are unable to meet the deadline due to a cause beyond your control, if we do not receive your request to decline this offer by December 14, 2009, your coverage and premiums will change effective January 1, 2010, and you will be responsible for the increased premium. If after December 14, 2009, you decide that you do not want the increase, you may contact us at 1-800-582-3337 and request that we decrease your coverage. You may request a decrease in your coverage after one or more increases have taken effect. A decrease must be in an amount that is equal to one or more of the increases that took effect. A decrease cannot exceed the amount of any increases that took effect. The effective date of your decreased coverage will depend on when you contact us. [ Back to Alternative Insurance Plan FAQs ]
As indicated in your Benefit Booklet, we will not increase your benefits if you are eligible for benefits. Therefore, if you are currently in claim status (eligible for or receiving benefits), you will not receive an Alternative Insurance Plan FPO increase letter. [ Back to Alternative Insurance Plan FAQs ]
The next Alternative Insurance Plan FPO increase will be effective on January 1, 2012, and future increases will occur every two years thereafter on the first day of the year. |
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