Federal Long Term Care Insurance Program (FLTCIP)
ATTENTION FLTCIP PARTICIPANTS!!!
CURRENT ENROLLEE PREMIUMS ARE SET TO INCREASE BY AN AVG. OF 83% NOVEMBER 1st, 2016!!!
OPM has signed a new FLTCIP contract with John Hancock. In the past, a new contract has led to an increase in premiums FOR NEW ENROLLEES ONLY that was generally between 17%-25%. The actuaries are scrambling to recalculate their internal model because people are living longer than ever, healthcare and long-term care costs are higher than ever, and the interest rate environment has remained negligible.
But let us be clear, this is not only going to effect new enrollees, the 83% rate hike is for the 250,000+ current enrollees! The premiums will increase for the average Fed by about $111/month!
The options being offered to current participants are: to slash coverage and pay the same premiums, pay the new sky-high premiums for the same coverage, drop the coverage altogether, or for eligible employees there is the option to elect a paid-up benefit.
LTC policies were already widely considered by experts to be too restrictive in nature to justify the added expense, meaning the cost is too high when you consider all the red tape that a Traditional LTC policy puts between you and receiving your LTC benefit... this was before the rate hike! Now the FLTCIP has broken its word and is nearly doubling the cost to current participants - regardless of how long they have been enrolled or how much premium they have paid in! Imagine 14 years at roughly $2,000 per year to find yourself where we are today... WOW. Talk to WalkerCPG today about how to address this issue in a more affordable, flexible, and efficient way!