The Office of Personnel Management (OPM) has announced an extension to the suspension of the Federal Long Term Care Insurance Program (FLTCIP), now effective until December 19, 2024. This extension prolongs the current suspension, which was set to expire on the same date. During this suspension, new enrollments are not permitted, and existing enrollees are unable to apply for increased coverage. This decision directly impacts individuals seeking to understand and plan for their Federal Long Term Care Insurance Program Premiums.
OPM has stated that this extension is a necessary measure to protect the integrity of the FLTCIP. The primary reasons cited are the persistent “volatility in long term care costs” and a “diminished insurance market.” These factors create instability that makes it challenging to establish benefit offerings with premium rates that are both reasonable and accurately reflect the actual cost of the long term care benefits provided. Essentially, the increasing and unpredictable nature of long term care expenses, combined with a less competitive insurance landscape, makes setting fair and stable federal long term care insurance program premiums exceptionally difficult.
The FLTCIP is designed to assist enrollees with the significant costs associated with long term care. This type of care becomes necessary when individuals require help with everyday activities due to chronic illness, disability, or cognitive impairments like Alzheimer’s disease.
When the program is active and not under suspension, a wide range of individuals are typically eligible to apply for FLTCIP coverage. This includes most Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives.
Under normal circumstances, most employees must be eligible for the Federal Employees Health Benefits (FEHB) Program to apply for FLTCIP, regardless of actual FEHB enrollment. Annuitants, however, do not need to meet FEHB eligibility or enrollment requirements. It’s important to note that certain pre-existing medical conditions may affect eligibility for coverage. Applying directly is the only way to determine individual eligibility when the program resumes accepting applications.
For those seeking further information regarding the FLTCIP, Long Term Care Partners can be contacted at 1-800-582-3337. Additionally, the program website offers comprehensive details. The LTCFEDS Care Navigator is also available on the website, providing a valuable resource library to support caregivers and individuals navigating the complexities of long term care at different life stages.
This extended suspension underscores the ongoing challenges in the long term care insurance market and the factors influencing federal long term care insurance program premiums. Potential applicants and current enrollees should monitor the official LTCFEDS website for future updates and program announcements.
