The Office of Personnel Management (OPM) has announced a further extension to the suspension of the Federal Long Term Care Insurance Program (FLTCIP), impacting individuals seeking to enroll and potentially raising questions about Federal Long Term Care Insurance Program Premiums in the future. This suspension, initially set to expire on December 19, 2024, will now be extended for an additional 24 months, unless OPM provides further notice. This means that from December 19, 2024, for the foreseeable future, new applications for FLTCIP coverage will not be accepted, and current enrollees are restricted from increasing their existing coverage.
This decision to extend the FLTCIP suspension is primarily driven by the ongoing instability within the long term care insurance market. According to OPM, the fluctuating and unpredictable costs associated with long term care services, directly influence the ability to establish federal long term care insurance program premiums that are both reasonable and equitable. Federal law, specifically 5 U.S.C. 9003(b)(2), mandates that premium rates must appropriately reflect the cost of the benefits provided. In the current volatile market, maintaining this balance has become challenging, necessitating the application suspension.
The FLTCIP is designed to assist federal employees, U.S. Postal Service workers, annuitants, active and retired members of the uniformed services, and their qualified relatives in covering the significant expenses associated with long term care. This insurance is intended to provide financial support when individuals require assistance with daily living activities or are diagnosed with severe cognitive impairments such as Alzheimer’s disease.
While the program is active and not under suspension, a broad range of individuals are typically eligible to apply for FLTCIP coverage. For most employees, eligibility for the Federal Employees Health Benefits (FEHB) Program is a prerequisite, although actual FEHB enrollment is not required. Annuitants have a more relaxed eligibility criteria, not needing FEHB eligibility. It is important to note that certain pre-existing medical conditions may affect an applicant’s approval for coverage. Applying directly to the program is the definitive way to determine individual eligibility when the suspension is lifted.
For those seeking more detailed information about the FLTCIP and the implications of this extended suspension on federal long term care insurance program premiums and future enrollment opportunities, Long Term Care Partners can be contacted at 1-800-582-3337. Additionally, their website at https://www.ltcfeds.gov/ offers comprehensive resources. For caregivers and those navigating the complexities of long-term care, the LTCFEDS Care Navigator, accessible via the website, provides a valuable resource library to support individuals through various stages of aging and care needs.
