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Get answers to frequently asked questions about the Federal Long Term Care Insurance Program (FLTCIP).

We mailed letters at the beginning of October to enrollees who chose the future purchase option (FPO) inflation protection as part of their coverage. FPO, as described in your benefit booklet, provides for an increase to your daily or weekly benefit amount every two years, as well as the remaining amount of your maximum lifetime benefit. This increase to your benefits comes with a corresponding increase to your premiums, if you choose to accept it.

The recent FPO offer letter you received is not connected to the premium increase that occurred in the fall of 2016. You are receiving an offer to increase the benefits of your plan because you chose the FPO inflation protection as part of your coverage. FPO, as described in your FLTCIP Benefit Booklet, provides for an increase to your daily or weekly benefit amount every two years, as well as the remaining amount of your maximum lifetime benefit. This increase to your benefits comes with a corresponding increase to your premiums, if you choose to accept it.

If you wish to accept the FPO increase, you do not need to do anything; your benefits and premium will automatically increase effective January 1, 2020. If you choose to decline the FPO increase and want to retain your current coverage, you must select Option 2 on the offer form, sign it, and submit it back to us by November 22, 2019.

All enrollees who:

  • have selected FPO as the inflation protection for their coverage
  • will have had coverage for at least 12 months as of January 1, 2020
  • are not eligible for benefits
  • have not declined three previous FPO offers (for those with a FLTCIP 1.0 plan or Alternative Insurance Plan) Note: For those with a FLTCIP 2.0 plan, there is no limit as to how many times you can decline the FPO offers. It will not prevent you from receiving future FPO offers.
  • have not exhausted their maximum lifetime benefit

Yes. Please call our Customer Service Center to request a copy of your letter. You will receive it within 7 to 10 business days depending on mail time.

Note: This mailing is only for enrollees who selected FPO when they enrolled, or as part of a plan change to their coverage. If you are currently enrolled in the automatic compound inflation option (ACIO) you will not receive a letter.

For FLTCIP 2.0 enrollees, the U.S. Department of Labor's Consumer Price Index for All Urban Consumers (CPI-U) is used to measure inflation increases. The 2020 FPO increase this year for FLTCIP 2.0 enrollees is 4.50%.

For FLTCIP 1.0 and Alternative Insurance Plan (AIP) enrollees, the U.S Department of Labor's Consumer Price Index for Medical Care (CPI-M) is used to measure inflation increases. The 2020 FPO increase this year for FLTCIP 1.0 and AIP enrollees is 5.04%.

Note: The additional premium for the increase, if you choose to accept it, is calculated using current premium rates and your age as of January 1, 2020.

There is no specific index that measures inflation as it relates to long term care services, which are provided in a variety of settings, for a number of reasons. For enrollees in FLTCIP 1.0 or the Alternative Insurance Plan (AIP), the U.S. Department of Labor's Consumer Price Index for Medical Care (CPI-M) is used to measure inflation increases. The CPI-M measures costs associated with technology, lifesaving medical equipment, complex procedures performed by specialists, prescription drugs, and malpractice insurance premiums.

For enrollees in FLTCIP 2.0, the U.S. Department of Labor's Consumer Price Index for All Urban Consumers (CPI-U) is used to measure inflation increases. The CPI-U measures the average change over time in the prices paid by urban consumers for specified consumer goods and services, including food and beverages, housing, transportation, and medical care, among others. The underlying cost drivers for long term care are predominantly contained within this index, making the CPI-U one of the most suitable indices for tracking current and future changes in long term care costs.

While past performance is not a reliable indicator of future performance, it may be helpful to note historical CPI-U trends for those interested in FPO.

The average CPI-U increases from 1989 to 2018 are as follows:

Length of Time Period CPI-U
10 years 2009-2018 1.55%
20 years 1999-2018 2.19%
30 years 1989-2018 2.55%

Source: U.S. Department of Labor, Bureau of Labor Statistics. "Historical Consumer Price Index for All Urban Consumers," www.bls.gov/cpi (accessed July 2019).

John Hancock's proposal for the second FLTCIP contract term included using the CPI-U as the measuring index for FPO. Based on the information provided, OPM agreed to this change for individuals applying for FLTCIP 2.0 coverage.

If you wish to accept the increase to your FLTCIP coverage, you do not need to do anything; the increase will happen automatically on January 1, 2020. If you send a signed FPO offer form back to us and do not check one of the options, you will receive the FPO increase.

Yes. If you accept the FPO offer, we will send you an updated schedule of benefits.

If you decline the FPO offer, we will send you a confirmation of your decline. This letter will provide the total number of declines you have made if you are enrolled in a FLTCIP 1.0 plan or AIP. Note: For enrollees with a FLTCIP 2.0 plan, there is no limit as to how many times you can decline the FPO offers. It will not prevent you from receiving future FPO offers.

All 2020 FPO premium increases take effect on January 1, 2020. Depending on your payment method, you will see an increase to your premiums as follows:

Payment method Increased premium appears
Direct bill January 2020 bill
Automatic bank withdrawal January 2020 withdrawal
Payroll deduction Payroll deduction covering the first full pay period in January 2020
Annuity deduction January 2020 annuity payment, which is paid on February 1

If you choose not to accept the FPO offer and want to retain your current coverage, you must select Option 2 on the offer form you receive, sign it, and submit it back to us by November 22, 2019.

Mail the form to:
Long Term Care Partners, LLC
P.O. Box 8330
Greenland, NH 03802

Fax the form to: 1-866-921-4513

Note: Each request to decline the FPO offer must be signed by the insured (e.g., one spouse cannot sign for the other). If you are enrolled in a FLTCIP 1.0 plan or AIP, and you have declined three FPO offers, you will no longer receive future offers. Your FPO offer letter will include how many previous offers you've declined, if any. If you are unsure, call our Customer Service Center.

If you are enrolled in FLTCIP 1.0 or AIP, you can decline up to two offers and still receive future offers. As indicated in your benefit booklet, once you have declined the FPO offer three times, you will no longer receive offers to increase your coverage under this option.

If you are enrolled in FLTCIP 2.0, there is no limit as to how many times you can decline the FPO offers. It will not prevent you from receiving future FPO offers.

For FLTCIP 1.0 and AIP enrollees, your FPO offer letter will include how many previous offers you've declined, if any. Or, you may call our Customer Service Center and we can provide you with a detailed history of your FPO offers.

For FLTCIP 1.0 and AIP enrollees, if you want to resume receiving future FPO offers after you have declined the offers three times, you must provide, at your expense, evidence of your good health that is satisfactory to us. Call our Customer Service Center and we will let you know specifically what you need to do.

Note: For FLTCIP 2.0 enrollees, there is no limit as to how many times you can decline the FPO offers. It will not prevent you from receiving future FPO offers.

Yes. To decline the offer, you must respond by November 22, 2019.

If you are eligible for or receiving benefits as of December 31, 2019, you will not be eligible for this FPO increase. However, if you are no longer eligible for or receiving benefits as of December 31, 2019, you will receive an FPO offer with revised response time frames.

We also offer the automatic compound inflation option (ACIO). With this option, your daily or weekly benefit amount and remaining portion of your maximum lifetime benefit will automatically increase by either 4% or 5% (depending on the percentage you choose when you apply) compounded every year. The increases under this option are made even if you are eligible for benefits, without regard to your age, claim status, claim history, or the length of time your coverage has been in effect. Your premium does not increase annually as a result of this annual increase in benefits.

Note: Premiums are not guaranteed. Premiums can increase only if you are among a group of enrollees whose premium is determined to be inadequate and both the U.S. Office of Personnel Management and the insurer agree to the rate change.

For FLTCIP 1.0 enrollees, you may switch to ACIO during the 2020 FPO offer period on a guaranteed-acceptance basis (meaning you do not have to answer any questions about your health), as long as you are not eligible for benefits and have not declined three FPO offers in the past. If you switch to ACIO instead of accepting the FPO increase, you will not receive the FPO increase offered at that time. Your FPO offer letter provides details and a selection option to switch to ACIO.

For FLTCIP 2.0 enrollees, you may request to switch from FPO to ACIO at any time. However, you will be required to provide, at your expense, evidence of your good health that is satisfactory to us.

Note: Each written request to switch to the ACIO must be signed by the insured (e.g., one spouse cannot sign for the other). If you switch to ACIO, you will not receive the 2020 FPO increase. In most instances, the effective date of the change to the ACIO will be January 1, 2020, and the first automatic increase to your benefits will take place on January 1, 2021.

Effective October 21, 2019, FLTCIP 3.0 is the new plan for new applicants who wish to enroll in the FLTCIP. FLTCIP enrollees who applied for coverage before October 21, 2019, are covered under a different plan (FLTCIP 1.0 or FLTCIP 2.0).

The FLTCIP 3.0 plan was introduced on October 21, 2019.

The FLTCIP plan available for new applicants, FLTCIP 3.0, was introduced on October 21, 2019. Prior to that date eligible applicants were able to apply for FLTCIP 2.0 since 2010. FLTCIP 1.0 was the original FLTCIP plan and was available to new applicants from 2002 through 2009.

No. If your FLTCIP 3.0 coverage is in force on the date of your death, any premium stabilization feature (PSF) amount available as a refund of premium death benefit will be paid to your estate or other designated beneficiary. However, if you are approved for FLTCIP 3.0 coverage and die within 30 days of receiving the benefit booklet, we will refund any premium you paid to your estate.

No. The premium stabilization feature (PSF) terminates, and no benefits are available under this feature if you lapse or cancel your coverage voluntarily, your coverage lapses for nonpayment of premiums, you elect the contingent benefit upon lapse, or your coverage terminates for reasons other than death.

No. If you apply for coverage under the FLTCIP 3.0 plan, you will have an issue age based on your age as of the date we receive your FLTCIP 3.0 application. To calculate FLTCIP 3.0 premiums, use our Premium Calculator.

There are important considerations for current enrollees who wish to apply for coverage under FLTCIP 3.0. If you are a current enrollee and would like to learn more about FLTCIP 3.0, please call our Customer Service Center to speak with one of our program consultants.

If you wish to apply for FLTCIP 3.0, you will have to submit a new full underwriting application for FLTCIP 3.0 at your current age and, if approved, your previous FLTCIP 1.0 or 2.0 coverage will be terminated. You will not receive any credit or carryover of benefits for previously being enrolled in the FLTCIP.

There are important considerations for current enrollees who wish to apply for coverage under FLTCIP 3.0. If you are a current enrollee and would like to learn more about FLTCIP 3.0, please call our Customer Service Center to speak with one of our program consultants.

No. Coverage and rates for existing FLTCIP 1.0 or 2.0 enrollees are not impacted by the launch of FLTCIP 3.0.

However, premiums are not guaranteed. Your premium will not change because you get older or your health changes or for any other reason related solely to you. We may only increase your premium if you are among a group of enrollees whose premium is determined to be inadequate. While the group policy is in effect, the U.S. Office of Personnel Management (OPM) must approve the change.

Premiums for the FLTCIP 3.0 plan are generally competitive with individual long term care insurance policies offering similar long term care insurance coverage for applicants of the same age. However, the FLTCIP 3.0 plan offers additional benefits, such as the premium stabilization feature that is designed to help protect against potential future rate increases. As part of this feature there is an adjustable amount that is calculated as a percentage of premiums paid. Under certain conditions, this amount may be used to offset your future premium payments or provide a refund of premium death benefit to your estate or designated beneficiary.

No. The 3% automatic compound inflation option (ACIO) is not available under the FLTCIP 1.0 and 2.0 plans. Under FLTCIP 1.0 and 2.0, the available inflation protection options are the future purchase option (FPO), 4% ACIO, and 5% ACIO. If you want to change your inflation protection option and it's considered an increase to your current coverage, you must submit the necessary coverage change application for your plan and go through the underwriting process.

Yes, you can keep your FLTCIP coverage as long as you continue to pay your premiums. There is no government contribution toward your FLTCIP premiums.

Yes, you can keep your FLTCIP coverage as long as you continue to pay your premiums. There is no government contribution toward your FLTCIP premiums.

No. There is no provision in the law governing the FLTCIP that would allow your agency to pay your FLTCIP premiums.

No. You must keep your premium payments current in order to keep your coverage. There is no government contribution toward your FLTCIP premiums.

Under FEHB, you incur a debt to your agency, which pays both your portion and the government's portion of your premiums to your health benefits plan. Under the FLTCIP, your agency does not pay any portion of your premiums and has no legal authority to pay for you.

Yes. Members of the uniformed services who are on active duty or full-time National Guard duty for more than 30 days can apply for coverage at any time.

Yes. If you currently pay your premiums through payroll deduction, please call the BENEFEDS Customer Service Center and explain that your payroll location is changing. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

If you currently pay premiums through automatic bank withdrawal or direct bill, you must complete a Billing Change Form and mail it to us to have your premiums deducted from your active duty pay.

Your other options are to pay your premiums through automatic bank withdrawal (ABW) or we can bill you directly.

If you're deployed overseas, it might be hard to receive and pay direct bills on time, which means your coverage could be canceled. In this case, ABW may be the best option for you. To change your payment option to ABW, visit BENEFEDS.com and either register for or login to your My BENEFEDS account.

To change your payment option to direct bill, call the BENEFEDS Customer Service Center or complete a Billing Change Form and mail it to us.

BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

There is no war exclusion under the FLTCIP. This means benefits may be payable for conditions due to war or acts of war, declared or undeclared, or service in the armed forces or auxiliary units.

However, the FLTCIP does not pay benefits for care or treatment you would receive in a government facility, including a Department of Defense or Department of Veterans Affairs facility, unless otherwise required by law.

You can download an application in the Resources section of our website.

The FLTCIP does not have an annual open season. We do not know how frequently we will have them and when the next one will be. However, you do not need to wait for an open season. If you're eligible for the FLTCIP, you can apply at any time using the full underwriting application. If you are newly eligible, you have 60 days from the date you became eligible to apply using the abbreviated underwriting application.

If you applied using the abbreviated underwriting application, you should receive a decision on your application within a few weeks. If you applied using the full underwriting application, it may take longer depending on if we needed to request copies of your medical records and/or schedule an interview with a nurse.

Call our Customer Service Center to check the status of your application.

In general, your effective date of coverage will be the first day of the month after your application is approved. You'll receive a letter from us with your effective date and information about what may change that date. If you're an active workforce member applying with the abbreviated underwriting application, you must meet the actively at work requirement for your coverage to become effective.

Long Term Care Partners (LTCP), LLC makes all insurability decisions and those decisions cannot be appealed to the U.S. Office of Personnel Management (OPM). However, an applicant may ask LTCP to reconsider its insurability decision. If you apply and are denied coverage, your decision letter will include instructions on how to request a reconsideration of the denial.

It is your duty to inform us in writing or by secure email, if between the date your application is submitted and the date your insurance coverage is effective: 1) your health changes in a way that would cause any answer given on your application to no longer be correct, or 2) you receive medical advice or treatment from a physician or other health care practitioner for a condition that would affect an answer to any question on your application.

Underwriting is the process of reviewing medical and health-related information provided in an insurance application to determine if you present an acceptable level of risk to be considered insurable.

Yes. Everyone who is eligible for the FLTCIP must undergo underwriting and may complete the full underwriting application. If you're newly eligible and within 60 days from the date you became eligible, you may complete the abbreviated underwriting application. Abbreviated underwriting means you answer fewer health questions.

Underwriting is necessary to ensure the long term health of the program. The premiums charged for insurance coverage must be competitive with private sector policies. If we guaranteed standard coverage to everyone who applied, we would have to add the expected costs of those in poor health to the premiums charged for FLTCIP coverage.

Abbreviated underwriting means you answer fewer health-related questions than full underwriting. Employees who are eligible for abbreviated underwriting answer seven questions about their health.

Spouses of employees who are eligible for abbreviated underwriting answer 10 questions and need to authorize access to their medical records. You may also have an interview with a nurse.

Go to the Resources section to download the abbreviated underwriting application.

The following new applicants can apply within 60 days of becoming eligible using the abbreviated underwriting application:

  • New and newly eligible employees (this includes members of the uniformed services)
  • Spouses of new and newly eligible employees
  • Newly married spouses of employees

You're a new employee if you were hired or began your position within the past 60 days. Those with prior federal service must have had a break in service of at least 180 days. New District of Columbia employees (except D.C. Courts employees) are not eligible to apply for this insurance.

You're a newly eligible employee if you started a job in a FLTCIP-eligible group. For example, someone who was an intermittent employee and then moved to a full-time permanent position without a break in service would be a newly eligible employee. Another example is a member of the Individual Ready Reserve who moves into the Selected Reserve.

Full underwriting means you must answer more health-related questions than abbreviated underwriting. It may also include a review of medical records and possibly an interview with a nurse. This is the same level of underwriting that those who purchase individual policies in the private market typically undergo. Go to the Resources section to download the full underwriting application.

The following new applicants must apply using the full underwriting application:

  • Employees who did not apply within 60 days of becoming eligible (this includes members of the uniformed services)
  • Spouses of employees who did not apply within 60 days of becoming eligible
  • Retirees/annuitants
  • Spouses of retirees/annuitants
  • Qualified relatives

Employees and members of the uniformed services who submitted an abbreviated underwriting application must be actively at work at least one day during the week immediately prior to the week that contains the original effective date shown on your schedule of benefits.

For federal employees applying with the abbreviated underwriting application, it means you meet the following conditions:

  • you are reporting for work at an approved work location and you work at least one-half of your regularly scheduled hours for that day; and
  • you are able to perform all the usual and customary duties of your employment on your regular work schedule.

For members of the uniformed services, actively at work means that you are on active duty and are physically able to perform the duties of your position.

If you do not meet the actively at work requirement for your original effective date, you must contact us and we will issue a revised effective date. It will be the first day of the month after the date you return to being actively at work. For your coverage to become effective on the revised effective date, you must meet the actively at work requirement for that date. Your coverage will not go into effect until you meet the actively at work requirement.

No. The actively at work requirement is only for employees who are applying for coverage using the abbreviated underwriting application.

No. The actively at work requirement is only for employees who are applying for coverage using the abbreviated underwriting application.

No. The actively at work requirement is only for federal employees who are applying for coverage using the abbreviated underwriting application.

If you are on leave without pay from your eligible federal position and you meet one of the following four criteria, you do not have to be actively at work with your federal agency on your scheduled effective date:

  • you work full-time for an employee organization (e.g., union)
  • you work on a detail to an international organization
  • you work on a temporary assignment to a state, local, or Indian tribal government, institution of higher education
  • you work at any other organization eligible under the Intergovernmental Personnel Act of 1970

However, you must meet the actively at work requirement at your current employment site in order for your coverage to become effective.

Yes, if your home or other telework site is an approved work location. You must meet the other actively at work requirements as well.

The Americans with Disabilities Act (ADA) does not prohibit the underwriting of risks by insurance companies. Insurance companies may legally decline to insure people who are not acceptable insurance risks, as long as it is actuarially justified and all classes of people with the same or options conditions are treated in the same manner.

For example, it is standard industry practice to decline to issue long term care insurance coverage to people in wheelchairs, people who use some other medical devices, and/or people who have certain medical conditions or combinations of conditions because people in these categories have a significantly higher chance of needing long term care services. Accepting such risks would increase the price of the insurance considerably, resulting in adverse selection and possible instability of the program.

The FLTCIP does offer an Alternative Insurance Plan to employees and spouses who apply with abbreviated underwriting and are denied standard insurance coverage.

The federal government is a leader in recruiting individuals with disabilities. As a result, we recognize that the federal workforce has significantly more employees with disabilities than many private sector employers. However, without some form of underwriting (questions about your health), we would not be able to offer attractive and affordable long term care insurance.

Anyone who is eligible for the FLTCIP can apply for coverage. There is a range of disabilities and severity of medical conditions, therefore you must apply to find out if you will be approve or denied for coverage based on our underwriting requirements.

The FLTCIP does offer an Alternative Insurance Plan to employees and spouses who apply with abbreviated underwriting and are denied standard insurance coverage.

If the FLTCIP guaranteed standard insurance to all employees who applied, the insurance carrier would have to add the expected costs of those in poor health to the premium. With no government contribution, many healthier employees who could pass underwriting would find less expensive premiums and purchase coverage elsewhere. The program would then be left with insuring fewer healthy individuals and more individuals who could not purchase private insurance, requiring even higher premiums to cover their risks.

All employees who apply for coverage under the FLTCIP will be offered some form of benefit. The FLTCIP offers an Alternative Insurance Plan to employees and spouses who apply with abbreviated underwriting and are denied standard insurance coverage, and a non-insurance service package to all other applicants who are denied standard insurance coverage.

No. Preexisting conditions may prevent you from obtaining FLTCIP coverage in the first place, but if you are approved for coverage, they will not cause a denial of a claim for benefits, as long as they were appropriately disclosed on your application.

The Alternative Insurance Plan (AIP) provides limited nursing home-only coverage to employees and spouses who answered "yes" to any of Part B questions 4-7 on the abbreviated application and are denied standard insurance coverage, if you choose to enroll in it.

The service package is a non-insurance option that offers care coordination, referral services, and access to a discounted network of long term care providers. This package is offered to applicants who answered "yes" to any of Part B questions 1-7 on the abbreviated application or Part B 1-6 on the full application.

No. The FLTCIP does not use insurance agents or brokers to sell or market this insurance or to provide information about its features.

For an informational, no-pressure conversation, call and speak to one of our customer service consultants. Our consultants are highly trained employees who can help you decide on a plan that best meets your needs, send you a personalized rate quote, and walk you step-by-step through the application process.

You have three options for paying your FLTCIP premiums:

  • Payroll or retirement pay/annuity deductions
  • Automatic bank withdrawal (ABW)
  • Direct bill

If you're an eligible employee or retiree, you may also pay the premiums for any of your qualified relatives who apply and are approved for coverage, even if you don't apply or you apply and are denied coverage.

Payroll deduction: Payroll deduction means that your premiums are automatically deducted from your pay. Most employees and active members of the uniformed services choose this method of payment.

Retirement pay/annuity deduction: Retirement pay/annuity deduction means that your premiums are automatically deducted from your retirement pay/annuity. Most retirees choose this method of payment.

Automatic bank withdrawal: Automatic bank withdrawal (ABW) means that your premiums are automatically withdrawn from your checking or savings account between the third and fifth business day of every month.

Direct bill: Direct bill means you will receive a bill in the mail during the month before your premium is due. You can pay your direct bill online or by mailing a check and the remittance portion of your bill with your account number to our billing address.

Online payments: The option to make a one-time payment online is only available to enrollees who pay premiums through direct bill. To pay your direct bill online, log into your My BENEFEDS account and select "Make One-Time Payment" on your dashboard. The one-time payment option will only appear on your My BENEFEDS dashboard when you have a balance due.

There are many payroll and annuity providers across the federal government. For this reason, we need your payroll or annuity office identifier to map your premium payment to the appropriate provider so we can successfully take deductions for your coverage.

On your application or Billing Change Form, you must provide your payroll or annuity office identifier if you want your premiums deducted from your pay. To find your office identifier, use our agency search tool. You will need to know the name of your agency or the office that pays your annuity.

If your payroll is serviced by the National Finance Center, you may also find your payroll office identifier on your Earnings and Leave Statement.

If you're unable to locate your agency using our agency search tool, then your agency may not support deductions. Please call the BENEFEDS Customer Service Center for assistance. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

You may also pay your premiums through automatic bank withdrawal or by direct bill.

At this time, eligible District of Columbia employees can't have premiums deducted from their pay. However, eligible District of Columbia annuitants may have premiums deducted from their annuity. You will be asked to provide an annuity office identifier and your CSA or CSF number on your application or Billing Change Form. The annuity office identifier for eligible District of Columbia annuitants is 24900002.

Your first deduction should be taken from the paycheck that covers the first full pay period that begins on or after your effective date of coverage. For many employees, this means that you may not actually see the premiums deducted from your pay until several weeks after your coverage has gone into effect.

For example, a February 1 effective date may be in the middle of a pay period. Premium deduction will begin during the next full pay period and show up in your check following that pay period.

If you do not see a deduction after two full pay periods, please call the BENEFEDS Customer Service Center for assistance. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

Your first deduction will be taken from the retirement pay/annuity check that pays you for the month in which your coverage begins. Since your retirement pay is paid in arrears, your premiums will not be deducted until the month after your effective date of coverage.

For example, if you have a February 1 effective date, your first deduction will be taken from the check you receive in March, since that check covers your February payment. Your coverage would still be effective on February 1.

Note: If you recently retired under CSRS or FERS, premiums for the FLTCIP cannot be deducted from your annuity while you are receiving interim payments (sometimes called "special pay"). This means that until the U.S. Office of Personnel Management (OPM) finalizes your annuity, we can't take deductions from your annuity to pay your premiums. While you are receiving interim payments, you may pay your premiums either by automatic bank withdrawal or direct bill. Once your annuity is finalized, we will begin your deductions.

Yes. Employees and retirees may authorize payroll or retirement pay deductions to pay for a qualified relative's FLTCIP coverage. You do not need to be enrolled in the FLTCIP, but you must provide your authorization and signature, either on your qualified relative's application or Billing Change Form.

If you need assistance authorizing deductions for a qualified relative's coverage, please call the BENEFEDS Customer Service Center for assistance. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

No you cannot. The system that processes your annuity payments is not equipped to deduct premiums from survivor annuities.

You do not have to pay premiums if you are eligible for benefits and have satisfied your waiting period. Premiums are also waived if you are eligible for benefits and receiving hospice care, since the waiting period does not apply to hospice care.

If you satisfy the requirements for waiver of premium on the first day of a month, the waiver will take effect on that date. Otherwise, the waiver will take effect on the first day of the following month. If, at a later date, you are no longer eligible for benefits (e.g., you recover) and wish to maintain your coverage, you will have to resume paying premiums.

If you stop paying premiums, your coverage under the FLTCIP will be canceled unless you're eligible for a paid-up, limited benefit, referred to as the contingent benefit upon lapse in your FLTCIP Benefit Booklet.

The contingent benefit upon lapse is a consumer protection feature that is built in to your FLTCIP coverage. If your premium increases beyond a certain percentage as specified by the National Association of Insurance Commissioners, it allows you to stop paying premiums and provides paid-up coverage with a reduced level of benefits.

Within 30 days after you receive your FLTCIP Benefit Booklet (which you'll automatically get if your application is approved), you may cancel your coverage and you'll receive a full refund of any premium you've already paid for the coverage. This is called a 30-day free look period.

You may cancel your coverage at any time after the 30-day free look period, but you will not receive a full refund of your premiums. You will only receive a refund of any premium that you paid to cover any period after the effective date of your cancellation.

In some cases your payroll deductions will switch automatically to your new location. If you transfer to a new agency within the same agency payroll office, we will most likely receive a notification of your transfer and be able to make the change for you.

If you transfer to an agency outside of your previous agency payroll office, then you must contact us to continue payroll deduction of your premiums. We will work with your new agency location to set up payroll deductions with them.

Depending on when we learn of your transfer, we may not be able to change your payroll deductions in time for your first paycheck at the new location. If this is the case, you may receive a direct bill for the premiums due that were not collected.

To report your transfer or any other change in your employment, please call the BENEFEDS Customer Service Center. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

In most cases, you don't need to do anything to begin paying your FLTCIP premiums through your retirement pay. Once we receive notification from your payroll office of your retirement, we will work with your retirement system to set up premium deductions from your retirement pay. However, there are some cases when we are not notified. If you have not seen a deduction after two full pay periods, call the BENEFEDS Customer Service Center.

If you are retiring under CSRS or FERS, premiums for the FLTCIP can't be deducted from your annuity while you're receiving interim payments (sometimes called "special pay"). This means that until the U.S. Office of Personnel Management (OPM) finalizes your annuity, we can't take deductions from your annuity to pay your premiums. While you're receiving interim payments, you may pay your premiums either by automatic bank withdrawal or by direct bill. Once your annuity is finalized, we will begin deductions from your annuity.

For questions regarding your payroll or retirement pay/annuity deductions, please call the BENEFEDS Customer Service Center. BENEFEDS administers the premium payment processes on behalf of the FLTCIP

If you are a FLTCIP enrollee and have questions regarding your premium payments, please call the BENEFEDS Customer Service Center. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

The FLTCIP has numerous consumer protections, including a contingent benefit upon lapse, inflation protection options, portability, and guaranteed renewability (the insurance company cannot cancel coverage except for nonpayment of premiums).

The contingent benefit upon lapse is a consumer protection built into the FLTCIP. If the insurer increases premium rates by a specific percentage that varies by issue age,* you will be provided with the following three options:

  1. You may maintain your current benefits and pay the new increased premium.
  2. You may reduce your benefits so that your premium payments are not increased.
  3. You may convert your coverage to paid-up coverage, and your new maximum lifetime benefit (MLB) will be reduced to the total amount of premiums you have paid for your coverage or 30 times your daily benefit amount, whichever is greater. Note: If you had previously received benefits under the plan and then recovered, no benefits will be paid in excess of your remaining MLB.

*The percentage increase is cumulative from the date you first purchased your coverage (in the event that premium rates increase more than once).

Contingent benefit upon lapse thresholds1

Your age Percent increase over initial premium
29 and under 200%
30–34 190%
35–39 170%
40–44 150%
45–49 130%
50–54 110%
55–59 90%
60 70%
61 66%
62 62%
63 58%
64 54%
65 50%
66 48%
67 46%
68 44%
69 42%
70 40%
71 38%
72 36%
73 34%
74 32%
75 30%
76 28%
77 26%
78 24%
79 22%
80 20%
81 19%
82 18%
83 17%
84 16%
85 15%
86 14%
87 13%
88 12%
89 11%
90 and over 10%

1National Association of Insurance Commissioners, "Long-Term Care Insurance Model Regulation," http://www.naic.org/store/free/MDL-641.pdf (accessed September 2019).

It means that once you enroll, you will remain enrolled as long as you pay your premiums. It doesn't matter if you leave federal service, divorce your federal spouse, or otherwise lose the affiliation that made you eligible to apply for coverage under the FLTCIP.

When you enroll, you have the opportunity to designate a person who will be sent a notice if your coverage is about to lapse for nonpayment of premiums. This person is not responsible for making your payments. It may be a good idea to choose someone living outside of your household. You may also designate someone, or change your designation, at any time through the "Billing" dashboard within your My LTCFEDS online account.

Coverage under the FLTCIP is guaranteed renewable, which means the only time the insurance company may cancel your coverage is if you don't pay your premiums. To help ensure that this doesn't happen, we have a 30-day grace period for late payments. And, if you designate someone to be your protection against unintended, we will notify them if you're about to lapse due to nonpayment of premiums.

The insurance carrier may transfer your coverage to another carrier if the U.S. Office of Personnel Management (OPM) selects a different carrier to insure the FLTCIP. They may also void your coverage if you misrepresent facts in completing your application.

Yes. You can request a decrease in your coverage at any time. You can decrease to any plan options that are available under your FLTCIP group policy, and your premiums (which are based on your age at purchase) will also decrease. You do not have to undergo new underwriting in order to decrease your coverage.

At any time, you may request an increase in your coverage by contacting our Customer Service Center. When you request an increase, you must provide, at your expense, evidence of your good health that is satisfactory to us. The increase options are subject to what's available under the FLTCIP.

If you request and we approve your coverage increase, your premium for the additional coverage will be based on your age and the premium rates in effect at the time the increase takes effect.

All denials are reviewed internally at Long Term Care Partners (LTCP), LLC before they are ever issued. If you receive a denial, the denial letter will let you know how to request a review of the decision. If the denial is reviewed and upheld, you may request an appeal. The letter upholding the denial will explain the appeal process to you.

All appeals are reviewed by an appeals committee composed of one or more representatives of John Hancock Life & Health Insurance Company and other person(s) mutually agreed upon by the U.S. Office of Personnel Management (OPM) and LTCP.

If the appeals committee upholds the denial, you may have the right to request a review by an independent third party. The letter upholding the denial will give you the details on requesting a review by an independent third party. The decision by the independent third party is final and binding on LTCP.

John Hancock Life & Health Insurance Company is the FLTCIP insurer.

In April 2016, the U.S. Office of Personnel Management (OPM) awarded the FLTCIP's third seven-year contract, beginning May 1, 2016, to John Hancock Life & Health Insurance Company to continue to provide insurance coverage for the FLTCIP. Long Term Care Partners, LLC, a wholly owned subsidiary of John Hancock, administers the FLTCIP.

John Hancock brings significant experience in the long term care insurance marketplace, maintaining some of the strongest financial and claims payment ratings. For more information about John Hancock and the most recent ratings, visit the About Us section of our website.

In April 2016, the U.S. Office of Personnel Management (OPM) awarded a new seven-year contract, beginning May 1, 2016, to John Hancock Life & Health Insurance Company to continue to provide insurance coverage for the FLTCIP. Long Term Care Partners (LTCP), LLC, a wholly owned subsidiary of John Hancock Life & Health Insurance Company, will continue to administer the FLTCIP. This is the third FLTCIP contract term.

OPM went through a full and open competitive bidding process for the third seven-year FLTCIP contract term and awarded the contract, which began on May 1, 2016, to John Hancock, the prior carrier and single bidder.

The FLTCIP law limits OPM's contracts with insurance carriers to seven years.

Long Term Care Partners, LLC, a wholly owned subsidiary of John Hancock Life & Health Insurance Company, has administered the FLTCIP since its inception.

Long Term Care Partners (LTCP), LLC, is the administrator of the FLTCIP and handles all inquiries related to the program. You may contact the FLTCIP Customer Service Center by phone or email if you have questions.

John Hancock brings significant experience in the long term care insurance marketplace, maintaining some of the strongest financial and claims payment ratings. Go to the About Us section of our website to view up-to-date financial ratings.

The FLTCIP law requires that premiums must reasonably and equitably reflect the cost of benefits and limits OPM's contracts with insurance carriers to seven years. OPM went through a full and open competitive bidding process for the third seven-year FLTCIP contract term and awarded the contract to John Hancock, the prior carrier and single bidder. John Hancock proposed significantly higher premiums because analysis of the program, using updated assumptions based on identified trends and actual claims experience, indicated that the FLTCIP premiums would not be sufficient to meet the future, projected costs of the benefits. The new premium rates are those established as a result of this competitive process.

Because the FLTCIP was established under Federal law, the states play no role in approving rates or otherwise regulating the insurance coverage.

Use our Premium Calculator to determine the premiums for your age and the plan options you select. You can compare up to four plans side-by-side to help select the plan that is best for you.

Premiums are based on the options you select, your age, and the premium rates in effect on the date we receive your application. The younger you are when you apply, the lower the premiums. Premiums are the same for all purchasers of the same coverage at the same age—this goes for employees, retirees, and all other eligible groups.

If you choose the automatic compound inflation option, your daily benefit amount and the remaining portion of your maximum lifetime benefit will automatically increase at a rate of 3% compounded annually with no corresponding increase in your premium. If you choose the future purchase option for inflation protection, your premiums will increase when your benefits increase.

It's important to note that FLTCIP premiums are not guaranteed. Your premium will not change because you get older or your health changes or for any other reason related solely to you. However, premiums may increase if you are among a group of enrollees whose premium is determined to be inadequate. While the group policy is in effect, the U.S. Office of Personnel Management (OPM) must approve the change.

No, per the Long-Term Care Security Act there is no government contribution. Enrollees are responsible for paying 100% of the cost.

At some point in your life, you may need long term care. Because traditional health plans do not typically cover this type of care, and because long term care is expensive, it is important to have a plan in place. The benefit of considering the FLTCIP is that coverage under the program can help protect against the high costs of care in the event that you do need it.

The FLTCIP is tailored to the specific needs of the federal family. It is regulated by the U.S. Office of Personnel Management (OPM), which ensures that FLTCIP benefits remain up-to-date and competitive. And, John Hancock Life & Health Insurance Company, the insurance provider for the FLTCIP, is among the best in terms of customer service, financial strength, and stability.

No. Premiums do not increase just because you're retiring or due to any other change in your work status.

It's important to note that FLTCIP premiums are not guaranteed. Your premium will not change because you get older or your health changes or for any other reason related solely to you. Premiums may only increase if you are among a group of enrollees whose premium is determined to be inadequate. While the group policy is in effect, OPM) must approve the change.

It is difficult to accurately compare the cost of two different plans. Even if they look similar, there are usually numerous differences between competing plans that can significantly affect their cost. Make sure when you're comparing plans, that you are comparing the exact same benefits.

It is true that for some people, rates in the individual insurance marketplace can be reduced by spousal and preferred health discounts. The FLTCIP chose not to target discounts to select groups. Rather, our goal was to offer rates that are appropriate for all who qualify under the underwriting standards.

No, it does not offer a separate spousal discount or benefit or any other targeted discounts. FLTCIP rates are designed to be appropriate for all who qualify.

If we offered a spousal discount or any other discount targeted to a specific segment of the group, rates for the rest of the group would have to be made higher to compensate for the discounts.

The minimum age limit is 18 years old. There is no upper age limit.

No. The FLTCIP is a separate program. However, if you're currently receiving Medicaid assistance, you should probably not purchase long term care insurance.

As long as you're eligible for the FLTCIP, you can apply, even if you live overseas. And, if you're approved for coverage, benefits are payable for covered services you receive outside the United States, its territories, and its possessions.

Public Law No. 107-314 provides that nonappropriated fund (NAF) employees may be eligible to apply for FLTCIP coverage. However, this is not automatic. The Secretary of Defense has the authority to determine that NAF employees of the Department of Defense are eligible to apply for coverage under the FLTCIP or may determine that you are eligible under an alternative long term care insurance program. Go to the Eligibility section of our website to find out what NAF employees are eligible to apply.

You should talk to your human resources office at your agency. If you are a federal employee and are in a position that is eligible for the Federal Employees Health Benefits (FEHB) Program, in general you are eligible for the FLTCIP. Your HR office should be able to tell you if you are eligible for FEHB. This does not mean that you need to be enrolled in FEHB, just that you are eligible for it.

Some employees are no longer federal employees, but now work for a private entity, and yet they are still eligible for FEHB. These employees are not eligible for the FLTCIP.

Employees who used to be federal employees but are now private sector employees with a grandfathered right to certain Title 5 federal benefits are also not eligible for the FLTCIP.

Yes, if you are in a position that is eligible for the Federal Employees Health Benefits (FEHB) Program.

Some Secret Service agents and U.S. Park Police are covered under the District of Columbia Police Officers' and Firefighters' Retirement Plan. This does not mean they are D.C. government employees or retirees. They are federal employees or annuitants. Therefore, assuming you meet the other eligibility requirements, you are eligible to apply for coverage under the FLTCIP. However, you can't pay your premiums through annuity deduction.

The Selected Reserve consists of those uniformed services members who are required to routinely train and are the first category liable for mobilization under the statutes governing mobilization.

The Selected Reserve consists of Drilling Reservists and Guard members assigned to Reserve Component Units; all Individual Mobilization Augmentees who are Reservists assigned to Reserve Component billets in Active C omponent units (they may perform duty in a pay or non-pay status); and Active Guard and Reserve members who are full-time Reserve members on full-time National Guard duty or active duty in support of the National Guard or Reserves.

Reservists who are assigned to a Voluntary Training Unit in the Naval Reserve and Category E in the Air Force Reserve (although they may perform inactive duty training [drills] in a non-pay status) are not members of the Selected Reserve and therefore are not eligible. They are members of the Individual Ready Reserve.

No. However, if you are currently on active duty or full-time National Guard duty and have been for more than 30 days, or you are in the Selected Reserve (members in the Individual Ready Reserve are not eligible), then you would be eligible to apply.

Yes, you are eligible to apply for this insurance at any time. You do not need to wait until you are receiving your annuity to apply.

The U.S. Department of Labor's Bureau of Labor Statistics defines inflation as, "the overall general upward price movement of goods and services in an economy."

The National Association of Insurance Commissioners (NAIC) states in the NAIC's A Shopper's Guide to Long-Term Care Insurance that, "Inflation protection can be one of the most important additions you can make to a long-term care insurance policy. Inflation protection increases the premium. However, unless your daily benefit increases over time, years from now you may find that it has not kept up with the rising cost of long-term care."

The current FLTCIP product, FLTCIP 3.0, offers a 3% automatic compound inflation option (ACIO). With this option, your daily benefit amount (DBA) and remaining portion of your maximum lifetime benefit (MLB) (as well as other remaining benefit amounts listed in your schedule of benefits) will automatically increase by 3% compounded every year. The increases occur on each anniversary of your original effective date of coverage (or the date you switch to one of these options) and are made even if you are eligible for benefits, without regard to your age, claim status, claim history, or the length of time your coverage has been in effect.

If you select ACIO, your premium is designed to include all future inflation increases you will receive each year while you are insured. Your premium does not increase annually as a result of this annual increase in benefits.

It's important to note that FLTCIP premiums are not guaranteed. Your premium will not change because you get older or your health changes or for any other reason related solely to you. However, premiums may increase if you are among a group of enrollees whose premium is determined to be inadequate. While the group policy is in effect, the U.S. Office of Personnel Management (OPM) must approve the change.

If we determine in the future that the cumulative actual rate of inflation in the cost of long term care services is significantly higher than the automatic compound inflation option rate shown on your schedule of benefits, compounded annually, we will determine a method to allow you to adjust your daily benefit amount. This method will account for the higher rate of inflation for an additional premium, if you are not then eligible for benefits.

The current FLTCIP product, FLTCIP 3.0, offers a future purchase option (FPO) for inflation protection. With this option, every two years we will offer an increase to your daily benefit amount (DBA) and remaining portion of your maximum lifetime benefit (MLB) (as well as other remaining benefit amounts listed in the schedule of benefits) based on the change in the U.S. Department of Labor's Consumer Price Index for All Urban Consumers, All Items (CPI-U). Your coverage must be in effect for at least 12 months in order for you to receive your first increase under this option. We will send notice of the increase to enrollees with this option every two years prior to the increase effective date.

If you accept the offer, your premium will also increase; the additional premium for each increase will be based on your age and the premium rates in effect at the time the increase takes effect. You do not have to take any action other than paying the additional premium. It will automatically take effect. Increases under this option do not require you to provide evidence of your good health and will be made regardless of your age. We will not increase your benefits if you are eligible for benefits.

If you do not want the FPO increase, we must receive your rejection before the date specified in the increase notice. If you decline a total of three increases, we will no longer offer them to you. If you wish to resume receiving increases, you must provide, at your expense, evidence of your good health that is satisfactory to us.

Only FLTCIP applicants and enrollees may register for a My LTCFEDS online account.

Current FLTCIP enrollees may register for a My LTCFEDS account and:

  • view your plan coverage information
  • view or edit your personal information
  • view or edit your protection against unintended lapse information
  • view your claims information (if you are currently in claims)
  • update beneficiary information

You may also view your premium payment history on BENEFEDS.com by creating a My BENEFEDS account. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

Go to the login page of our website to create a My LTCFEDS account.

We ask for your Social security number (SSN) to identify you as a current FLTCIP enrollee and create a My LTCFEDS account for you.

We ask for your date of birth to protect your identity and make sure only you can see your specific account information. We use it along with your SSN to verify your identity as a FLTCIP enrollee. We also use it to identify you if you forget your user ID or password.

For security purposes, your My LTCFEDS account will be locked when more than three incorrect log-in attempts are made. Please call us to have your account unlocked. After your My LTCFEDS account is unlocked, you will be able to access it if you log in correctly.

You may view personal information such as your name, date of birth, Social Security number, address, email address, and home or mobile phone number. However, you can only change your mail and contact information within your online account.

If you have a My BENEFEDS account and you change your personal information, you also need to make the changes within your My BENEFEDS account. BENEFEDS administers the premium payment processes on behalf of the FLTCIP.

You may view information such as your original issue age, original effective date, effective date of your current coverage, benefit options, premium amount, covered services, and billing method.

You may also view your premium payment history on BENEFEDS.com by creating a My BENEFEDS account. BENEFEDS administers the premium payment processes on behalf of the FLTCIP

The Long-Term Care Partnership Program is a federally-supported, state-operated initiative that allows you to protect a portion of your assets that you would typically need to spend down prior to qualifying for Medicaid if you purchase a qualified long term care insurance policy or coverage.

Once you purchase a partnership policy and use some or all of the benefits, the amount of the benefits used will be disregarded for purposes of calculating eligibility for Medicaid. This means that you are able to keep your assets up to the amount of policy benefits paid under your coverage. For example, in a state that chooses to participate in the Long-Term Care Partnership Program, once you have used part or all of your maximum lifetime benefit (MLB), your assets would be protected up to the amount paid under the policy. You would not need to spend those assets before qualifying for that state's Medicaid program.

The Long-Term Care Partnership Program originated in the late 1980s to address the increasing cost of state Medicaid expenditures for long term care. During this time, only four states were able to implement a Partnership Program (California, Connecticut, Indiana, and New York) due to federal law constraints. These four states are known as "grandfathered" partnership states.

Effective February 8, 2006, the Federal Deficit Reduction Act of 2005 (DRA) allowed for the nationwide expansion of the Long-Term Care Insurance Partnership Program and asset protection on a dollar-for-dollar basis. This means that for each dollar of benefits paid under the policy, the individual will get one dollar of asset protection, up to the maximum benefits paid out under the policy. Each state can elect to implement a DRA Partnership Program for the citizens of that state. The DRA does not require states to participate. In turn, insurance companies need to decide if they will offer partnership policies, and the policies must be certified as qualifying as partnership policies.

The law specifies that anyone who purchases a tax-qualified long term care insurance policy that meets stringent consumer protection standards and certain inflation requirements under the Partnership Program would qualify for asset protection, on a dollar-for-dollar basis, up to the policy maximum.

It is important to note that the purchase of DRA Partnership coverage does not automatically qualify the coverage holder for Medicaid. In addition, all other Medicaid eligibility criteria and requirements will apply at the time an individual applies for Medicaid.

You can visit the U.S. Department of Health and Human Services website for up-to-date information on state participation.

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 that quantify the risk that certain things will happen in the FLTCIP over the course of time.

The key risk assumptions relate to claims (how many people will qualify for benefits and begin submitting claims, when, and for how long?), investment results (how much money will be earned by investing the premiums?), lapse results (how many people will voluntarily drop their coverage over the course of time?), and mortality (how many people will die while enrolled?). These risks vary for enrollees depending on their ages when they enroll, and the risks change as people age while enrolled. Different plan designs require different risk assumptions as well (for example, there are different risk assumptions made for a three-year benefit period and an unlimited benefit period). There are also expense assumptions—how much it will cost to administer the FLTCIP and pay fees to the insurer(s).

All of the premiums collected for the FLTCIP go into an account that is held by the insurer just for the FLTCIP. The insurer 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 the U.S. Office of Personnel Management (OPM) and the insurance carrier 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 FLTCIP'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.

By the same token, if the fund has more money than might reasonably be needed to cover the FLTCIP's expected obligations, premiums may be reduced or benefits may be improved for the participants. The key thing to remember is that all premium collected goes into the experience fund, and the experience fund can only be used to cover the FLTCIP's needs and obligations and for the benefit of the FLTCIP participants. If the FLTCIP changes insurer(s), the fund moves to the new insurer(s).

Yes. Since 2002, John Hancock Life & Health Insurance Company has offered long term care insurance coverage to eligible members of the federal family. In the past 10 years, we have raised rates for the following FLTCIP inforce benefit booklet series:

Benefit booklet Years available Year of increase Percent of increase
FLTCIP 1.0 2002-2009 2010 A 25% maximum increase was implemented for enrollees with the Automatic Compound Inflation Option (ACIO), whose age at purchase was 69 or younger.
FLTCIP 1.0 2002-2009 2016 An overall average increase of 83% was implemented. The increase varied based on an enrollee's age at the time of enrollment, plan originally purchased, and plan design. A 126% maximum increase was implemented for enrollees who originally purchased FLTCIP 1.0.
FLTCIP 2.0 2009-2015 2016 An overall average increase of 83% was implemented. The increase varied based on an enrollee's age at the time of enrollment, plan originally purchased, and plan design. A 66% maximum increase was implemented for enrollees who originally purchased FLTCIP 2.0.

Coverage under the FLTCIP is guaranteed renewable. This means FLTCIP coverage cannot be canceled based on a change in an enrollee's health or age. As long as premiums are paid and benefits have not been exhausted, coverage will continue. However, it is important to note that premiums may increase in the future if you are among a group of enrollees whose premium is determined to be inadequate.

If it is determined that a premium increase is necessary, enrollees will be notified of the new premium amount and provided with at least one of the following options:

  • You may maintain your current benefits and pay the new increased premium.
  • You may reduce your benefits so your premium payments are not increased.
  • If you meet certain age and rate increase amount minimum thresholds, you may be eligible to convert your coverage to paid-up coverage. Your new maximum lifetime benefit will be reduced to the total amount of premiums you have paid for your coverage, or 30 times your daily benefit amount, whichever is greater. Note: If you had previously received benefits under the plan and then recovered, no benefits will be paid in excess of your remaining MLB.

Because long term care insurance is a complex, experience-based product, many factors are considered at the time premium rates are established. Examples include the frequency and severity of particular medical conditions, expected lifespan of enrollees, length of time an enrollee is expected to keep his or her coverage, cost of care, estimated returns on investment, and overall program expenses. As the program matures, these factors can change over time. Unfortunately, analysis of the FLTCIP, using updated assumptions based on identified trends and actual claims experience, indicated that the FLTCIP premiums were not sufficient to meet the program's future, projected claims costs. As a result, there was a need to increase premiums.

The FLTCIP is not unique in seeing the need to raise premium rates. As industry experience emerges, and is compared to original good-faith pricing assumptions, many long term care insurers have seen a need to raise premiums, both for new business and for some or all of their existing insureds.

The FLTCIP premium rates were established using guidelines set by the National Association of Insurance Commissioners and are intended to be adequate under moderately adverse conditions. FLTCIP premiums, however, are not guaranteed. Your premium will not change because you get older or your health changes or for any other reason related solely to you. Premiums may only increase if you are among a group of enrollees whose premium is determined to be inadequate.

OPM, John Hancock, and Long Term Care Partners, the program's administrator, review the FLTCIP experience fund status report every six months to assess the financial health of the program—in particular, whether funds under management adequately reflect the future claims expected for the FLTCIP.

Yes. The FLTCIP is designed to be a tax-qualified plan under the Internal Revenue Code. This means the benefits you receive generally aren't considered taxable income and you can deduct the premiums you pay as medical expenses as long as your total qualified medical expenses exceed 10% of your adjusted gross income.

The amount of long term care insurance premiums you can deduct depends on your age. There may be additional tax benefits in your state. Check with your state insurance department for more information.

Here are the current published Internal Revenue Service (IRS) limits by age:

Your age Max deduction (2018)
40 or younger $420
41–50 $780
51–60 $1,560
61–70 $4,160
71 or older $5,200

Rates are subject to change each year as determined by the IRS. Please consult irs.gov for the latest tax deduction information.

Note: This is not intended to provide tax advice. Always consult your tax attorney or certified public accountant when dealing with tax deduction considerations.

Yes, generally only if the IRS tax code is amended.

Yes. Many states offer state tax incentives to encourage the purchase of long term care insurance. If you would like to find out whether your state offers such incentives, please contact your state insurance department directly.

No. The law governing the FLTCIP requires the FLTCIP to offer only tax-qualified plans.

No. Section 125 of the Internal Revenue Code specifically excludes from the definition of qualified benefits, "any product which is advertised, marketed, or offered as long term care insurance."

Yes. HSAs can be used to pay long term care insurance premiums, subject to limits based on age, which are published by the IRS and are adjusted annually. An HSA is an account established to pay for qualified medical expenses, including qualified long term care costs and long term care insurance premiums. Contributions and withdrawals are tax-free for qualified expenses.

To open up an HSA you must be covered under a high deductible health plan and meet certain other requirements.

For more information on HSAs, please visit OPM's website.

An FSA is an account established to pay for qualified out-of-pocket health care and dependent care expenses. According to section 125 of the Internal Revenue Code, you cannot use it to pay FLTCIP premiums.

It's possible. The payment of the premium stabilization feature (PSF) amount as a refund of premium death benefit may have federal and state tax implications for your estate or other designated beneficiary. You may want to review this benefit with a qualified tax professional or attorney to determine any such tax impact.

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