This blog post is designed to provide general information on the subjects covered. It is not, however, intended to provide specific estate planning, insurance, tax or legal advice. Please note that LTC Consumer and its representatives do not give financial planning, tax or legal advice. You are encouraged to consult with your tax advisor or attorney concerning your own situation.

Federal LTCI Plan Rate Increase – What You Need to Know

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Are you or someone you know on the Federal Long Term Care Insurance Plan (FLTCIP)? It was recently announced premiums for select policy owners will increase November 1, 2016.

Learn more about the premium increase and what to do if you or someone you know is affected.

Who is NOT affected by the rate increase?

Most FLTCIP enrollees will experience the rate increase, but not everyone. The following enrollees will NOT experience the rate increase:

  • Those who purchased coverage at age 80 or older
  • Those who applied for coverage on or after August 1, 2015
  • Those currently eligible for benefits or awaiting decision on a pending claim
  • Those currently enrolled in the FLTCIP’s Alternative Insurance Plan

Why are premiums increasing?

The Federal LTCI Plan is being renewed by John Hancock Life & Health Insurance Company for seven more years. During the bidding process, John Hancock proposed higher premiums based on an analysis of the program and assumptions based on actual claims experience and trends.

This means enrollees are using their coverage at a higher rate, making the current FLTCIP premiums unsustainable. This plan will continue to be administered by Long Term Care Partners, LLC.

How much are premiums increasing?

Premium increases may vary depending on your benefits. Increases are based on:

  • Your issue age (the age you applied for coverage)
  • The plan you purchased (FLTCIP 1.0 or FLTCIP 2.0)
  • Your benefit options (benefit period or inflation protection)

When will I know about changes to my premiums?

If you receive a premium increase, Long Term Care Partners will mail you a 2016 Enrollee Decision Period offer package with information and personalized plan change options. These packets begin mailing July 2016. Personalized mailings will stagger, so not all enrollees will receive premium increase letters at the same time.

You may view your personalized options sooner by visiting www.LTCFEDS.com/MyAccount and signing in or registering for a My LTCFEDS online account.

Do I have to pay the higher premiums?

To continue with your current coverage, you will need to pay the premium increase. However, alternative options may be available.

You will be offered personalized options to reduce your coverage. At least one of these options will allow you to pay at or below your current premium at a reduced benefit.  Your personalized 2016 Enrollee Decision Period offer package will contain all the options available to you, or you may visit www.LTCFEDS.com/MyAccount to view your options.

How do I make my selection?

You have three ways to make your selection:

  1. Select your choice online at LTCFEDS.com/MyAccount.
  2. Fax your completed form to 866-921-4511
  3. Mail your completed form to:

Long Term Care Partners, LLC

P.O. Box 8330

Portsmouth, NH 03802-9908

 

Your selection must be made by September 30, 2016.

Please note: If you want to keep your current coverage and pay the increase, you don’t need to do anything. If you don’t make a selection, your coverage will remain the same and your premiums will increase November 1, 2016.

If you need information or help with deciding which option is best for you, call FLTCIP Customer Service Center at (800) 582-3337 Monday – Friday 8 a.m. to 8 p.m. (EST).

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