The Office of Personnel Management (OPM) has announced a further suspension of the Federal Long Term Care Insurance Program (FLTCIP). Originally set to expire on December 19, 2024, this suspension is now extended for another 24 months, effective from that date. This means that, for the foreseeable future, new applications for long term care insurance coverage through the FLTCIP will not be accepted, and current enrollees are also restricted from increasing their existing coverage.
This decision to extend the suspension reflects OPM’s assessment of the current challenges within the long term care insurance market. Persistent volatility in long term care costs, coupled with a shrinking and uncertain insurance market, has made it difficult to offer benefit plans with premium rates that are both reasonable and accurately reflect the actual costs of providing those benefits. This requirement for fair and equitable pricing is mandated under U.S. law (5 U.S.C. 9003(b)(2)).
What is Long Term Care Insurance?
Long term care insurance is designed to help individuals cover the significant costs associated with long-term care services. These services become necessary when someone needs assistance with everyday activities due to aging, illness, or disability. This can include help with basic personal care tasks, often referred to as Activities of Daily Living (ADLs), or for those experiencing severe cognitive impairment, such as Alzheimer’s disease. Long term care insurance provides financial support to manage these expenses, protecting savings and ensuring access to necessary care.
Who is Typically Eligible for FLTCIP?
When the FLTCIP program is active and not under suspension, it offers long term care insurance to a broad range of individuals. This includes most Federal and U.S. Postal Service employees and annuitants, as well as active and retired members of the uniformed services. Crucially, their qualified relatives are also eligible to apply for coverage.
For most employees, eligibility for the Federal Employees Health Benefits (FEHB) Program is a prerequisite for applying to FLTCIP, even if they are not actually enrolled in FEHB. However, this FEHB eligibility requirement is waived for annuitants. It’s important to note that certain pre-existing medical conditions may affect an individual’s application and could prevent approval for coverage. Applying is the only way to determine individual eligibility.
Resources for More Information
For individuals seeking further details about the FLTCIP, even during this suspension period, Long Term Care Partners can be contacted directly at 1-800-582-3337. Their website, https://www.ltcfeds.gov/, also provides comprehensive information.
In addition, the LTCFEDS Care Navigator is a valuable online resource library. It is specifically designed to support both caregivers and individuals who require care as they navigate the different stages of aging. Understanding the available support and care options as needs evolve can be a complex process, and the Care Navigator offers guidance through these transitions, from independent living to needing more comprehensive long term care.
In Conclusion
The suspension of the FLTCIP program highlights the ongoing challenges in the long term care insurance market. While new enrollments and coverage increases are paused, understanding the importance of long term care insurance and exploring available resources remains crucial for future planning and peace of mind.
