Health Care Happenings

Welcome to MOAA’s new Health Care Happenings blog. This first post regards a recent announcement by the Office of Personnel Management that enrollees in the Federal Long Term Care Insurance Program (FLTCIP) premiums will soon see a premium increase. Under a new contract, awarded to John Hancock, premiums for current enrollees with the automatic compound inflation (ACI) protection will increase between 5 and 25 percent for current enrollees, based on their age when they purchased their coverage, who choose to retain the same coverage they have now.

Increases are effective about January 1, 2010. The new premium rate chart (below) and answers to common FLTCIP questions appear on the OPM web site. The same site about efforts by OPM and Long Term Care Partners to create options that will keep FLTCIP premiums level by adjusting (i.e. reducing) benefits.

Although stable premiums were never guaranteed under the old contract with LTC Partners, FLTCIP subscribers who elected the ACI option may have expected to be immune from future premium increases. While MOAA has not endorsed FLTCIP, we knew it held some appeal to our members, especially during the initial enrollment period. It has been used by buyers as a comparison to MOAA’s endorsed LTC provider.

Keep in mind that neither Medicare nor Tricare covers long term care costs. Although Long Term Care insurance written by any provider can be pricey, bearing the costs of LTC without LTC insurance protection can devastate a family’s finances. Think long and hard before assuming this potential risk.

For information about MOAA endorsed long term care products, contact MOAA’s LTC provider.