The Federal Long Term Care Insurance Program (FLTCIP) is designed to help eligible federal employees, annuitants, and their families cover the substantial costs associated with long-term care services. Administered by the Office of Personnel Management (OPM), FLTCIP offers a range of benefits to assist with expenses when individuals need help with daily living activities or face severe cognitive impairment such as Alzheimer’s disease. However, recent news of program suspensions has raised questions about its stability and overall value. So, Is The Federal Long-term Care Insurance Program A Good Deal?
FLTCIP is currently facing a period of uncertainty. OPM has extended the suspension of new enrollments and applications for increased coverage until December 19, 2024. This suspension, initially set and now extended for a total of 24 months, is attributed to “ongoing volatility in long term care costs and a diminished insurance market.” According to OPM, these market conditions are making it difficult to offer benefit plans with premium rates that accurately reflect the cost of providing the benefits, as legally required. This means that individuals not currently enrolled cannot apply for coverage, and existing enrollees are unable to increase their current coverage during this suspension period.
When the program is active and not under suspension, a broad range of individuals are typically eligible to apply. This includes most federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives. For active employees, eligibility for the Federal Employees Health Benefits (FEHB) Program is generally a prerequisite for FLTCIP application, though actual FEHB enrollment is not required. Annuitants, however, do not need to be FEHB eligible or enrolled. It’s important to note that certain pre-existing medical conditions may prevent approval for coverage, necessitating an application to determine individual eligibility.
To understand if FLTCIP represents a “good deal,” it’s crucial to consider the broader context of long-term care insurance. Long-term care costs can be incredibly high and are often not fully covered by regular health insurance or Medicare. Policies like FLTCIP are designed to mitigate this financial risk, offering peace of mind and financial protection should the need for long-term care arise. For those eligible, particularly federal employees and annuitants, FLTCIP has historically provided competitive group rates and comprehensive benefits. However, the current suspension and market volatility raise concerns about future premium stability and plan offerings.
For individuals interested in learning more about FLTCIP, even during the suspension, resources remain available. Long Term Care Partners can be contacted at 1-800-582-3337, and their website, www.ltcfeds.gov, offers further information. Additionally, the LTCFEDS Care Navigator is a valuable resource library designed to support caregivers and individuals navigating the complexities of aging and long-term care needs. Whether FLTCIP is a “good deal” ultimately depends on individual circumstances, risk tolerance, and long-term financial planning, but understanding the program and the broader landscape of long-term care is the first step in making an informed decision.
