The Office of Personnel Management says long-term care insurance members will see premiums rise by as much as 126 percent. Participants can start looking at their package options July 18.
Federal workers have until Sept. 30 to make one of the most important financial decisions of their lives. Senior Correspondent Mike Causey explains the long-term care insurance dilemma.
Most Federal Long Term Care Program policyholders chose to accept higher premiums or took advantage of special benefit reduction options during this summer’s enrollee decision period. Premiums rose for about 264,000 active and retired federal employees by as much as 126 percent.
John Hancock Life & Health Insurance Company, OPM’s provider for the Federal Long Term Care Program, said “a confluence of factors” led to the sudden and drastic increases in premiums for 2017.
Reps. Don Beyer and Gerry Connolly (D-Va.) haven’t forgotten about rising premium rates to the Federal Long Term Care Program, and they certainly haven’t forgotten about the Office of Personnel Management’s response when asked what the agency planned to do about rising costs.
The Office of Personnel Management’s inspector general says the agency needs a contingency plan to address risks in the long-term care insurance market.