Federal Long Term Care insurance?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Bumping this discussion back up:

OPM is shutting down the federal LTC program for two years to new applicants and coverage increases on Monday, December 19. You must apply by 11:59pm on December 18.

My prediction is that they are going to introduce a new LTC 4.0 program with even worse coverage and higher premiums. If you want to participate in the current program or increase your coverage, you must do so this week. You do not need to wait for open season or a qualifying life event.

I just opted in last night, as I am a new employee to my agency. It required only an abbreviated underwriting questionnaire with no medical appointment required. My coverage is $300/day for 5 years with $547K lifetime cap. I’m age 41 and it’s costing me $122 per pay period. There is a 3% annual compounding inflation rate for the benefit amounts, while the premium stays static (except when the program is rebid). My great grandparents lived until 100, so I expect longevity.

The good thing about the Fed plan - the plan also covers your spouse or kids, so long as they don’t have qualifying medical conditions; it covers informal caregivers (like relatives or a friend who provided care); premium refund benefit upon your death

My spouse has a preexisting medical condition, so doesn’t qualify under the federal LTC plan (or any LTC plan). So we will need to save separately for my spouse, but at least my care is covered.

The contract was last bid in 2016 and there was an average premium increase of 83%. I think the contract ends next year so I would expect a substantial premium increase at that time. It just seems like the actuarial assumptions used to price the product were poorly done and one can be subject to dramatic price increases.

So did premium’s forget existing participants go up by 83%? Or was that the increase for the new participants to the 3.0 plan?

[Anonymous]

You need to double that number for a few years of total care.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Bumping this discussion back up:

OPM is shutting down the federal LTC program for two years to new applicants and coverage increases on Monday, December 19. You must apply by 11:59pm on December 18.

My prediction is that they are going to introduce a new LTC 4.0 program with even worse coverage and higher premiums. If you want to participate in the current program or increase your coverage, you must do so this week. You do not need to wait for open season or a qualifying life event.

I just opted in last night, as I am a new employee to my agency. It required only an abbreviated underwriting questionnaire with no medical appointment required. My coverage is $300/day for 5 years with $547K lifetime cap. I’m age 41 and it’s costing me $122 per pay period. There is a 3% annual compounding inflation rate for the benefit amounts, while the premium stays static (except when the program is rebid). My great grandparents lived until 100, so I expect longevity.

The good thing about the Fed plan - the plan also covers your spouse or kids, so long as they don’t have qualifying medical conditions; it covers informal caregivers (like relatives or a friend who provided care); premium refund benefit upon your death

My spouse has a preexisting medical condition, so doesn’t qualify under the federal LTC plan (or any LTC plan). So we will need to save separately for my spouse, but at least my care is covered.

The contract was last bid in 2016 and there was an average premium increase of 83%. I think the contract ends next year so I would expect a substantial premium increase at that time. It just seems like the actuarial assumptions used to price the product were poorly done and one can be subject to dramatic price increases.

So did premium’s forget existing participants go up by 83%? Or was that the increase for the new participants to the 3.0 plan?

I think all of them.

https://www.govexec.com/pay-benefits/2016/07/long-term-care-insurance-premiums-will-increase-average-83-percent-nov-1/129989/

"The rate increase, which will affect most enrollees, will vary widely between 0 percent and 126 percent, depending on an enrollee’s option under the Federal Long-Term Care Insurance Program, according to the Office of Personnel Management. The average rate increase will be 83 percent, or $111 more per month, OPM said, for enrollees who opt not to change their coverage."

Also:

“To help ease the burden of the rate increase, all affected enrollees will receive a 2016 Enrollee Decision Period offer package with personalized options to reduce the impact of their rate increase, or eliminate it all together, by reducing their plan coverage,” said an OPM statement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Bumping this discussion back up:

OPM is shutting down the federal LTC program for two years to new applicants and coverage increases on Monday, December 19. You must apply by 11:59pm on December 18.

My prediction is that they are going to introduce a new LTC 4.0 program with even worse coverage and higher premiums. If you want to participate in the current program or increase your coverage, you must do so this week. You do not need to wait for open season or a qualifying life event.

I just opted in last night, as I am a new employee to my agency. It required only an abbreviated underwriting questionnaire with no medical appointment required. My coverage is $300/day for 5 years with $547K lifetime cap. I’m age 41 and it’s costing me $122 per pay period. There is a 3% annual compounding inflation rate for the benefit amounts, while the premium stays static (except when the program is rebid). My great grandparents lived until 100, so I expect longevity.

The good thing about the Fed plan - the plan also covers your spouse or kids, so long as they don’t have qualifying medical conditions; it covers informal caregivers (like relatives or a friend who provided care); premium refund benefit upon your death

My spouse has a preexisting medical condition, so doesn’t qualify under the federal LTC plan (or any LTC plan). So we will need to save separately for my spouse, but at least my care is covered.

The contract was last bid in 2016 and there was an average premium increase of 83%. I think the contract ends next year so I would expect a substantial premium increase at that time. It just seems like the actuarial assumptions used to price the product were poorly done and one can be subject to dramatic price increases.

So did premium’s forget existing participants go up by 83%? Or was that the increase for the new participants to the 3.0 plan?

I think all of them.

https://www.govexec.com/pay-benefits/2016/07/long-term-care-insurance-premiums-will-increase-average-83-percent-nov-1/129989/

"The rate increase, which will affect most enrollees, will vary widely between 0 percent and 126 percent, depending on an enrollee’s option under the Federal Long-Term Care Insurance Program, according to the Office of Personnel Management. The average rate increase will be 83 percent, or $111 more per month, OPM said, for enrollees who opt not to change their coverage."

Also:

“To help ease the burden of the rate increase, all affected enrollees will receive a 2016 Enrollee Decision Period offer package with personalized options to reduce the impact of their rate increase, or eliminate it all together, by reducing their plan coverage,” said an OPM statement.

Thanks for this.

The lifetime coverage is probably what drove the large increase in 2016. With the lifetime max amounts, this probably makes the current program much more predictable from an actuarial standpoint.

The good thing with the current federal LTC program is the OPM backstop. Are there any private LTC programs that have a federal backstop?

[Anonymous]

Anonymous wrote:Bumping this discussion back up:

OPM is shutting down the federal LTC program for two years to new applicants and coverage increases on Monday, December 19. You must apply by 11:59pm on December 18.

My prediction is that they are going to introduce a new LTC 4.0 program with even worse coverage and higher premiums. If you want to participate in the current program or increase your coverage, you must do so this week. You do not need to wait for open season or a qualifying life event.

I just opted in last night, as I am a new employee to my agency. It required only an abbreviated underwriting questionnaire with no medical appointment required. My coverage is $300/day for 5 years with $547K lifetime cap. I’m age 41 and it’s costing me $122 per pay period. There is a 3% annual compounding inflation rate for the benefit amounts, while the premium stays static (except when the program is rebid). My great grandparents lived until 100, so I expect longevity.

The good thing about the Fed plan - the plan also covers your spouse or kids, so long as they don’t have qualifying medical conditions; it covers informal caregivers (like relatives or a friend who provided care); premium refund benefit upon your death

My spouse has a preexisting medical condition, so doesn’t qualify under the federal LTC plan (or any LTC plan). So we will need to save separately for my spouse, but at least my care is covered.

My father is in skilled nurisng now at a cost of $600 a day. This includes a private room but not memory care. We need some private duty nurses as well. Please be sure to save for yourself as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Bumping this discussion back up:

OPM is shutting down the federal LTC program for two years to new applicants and coverage increases on Monday, December 19. You must apply by 11:59pm on December 18.

My prediction is that they are going to introduce a new LTC 4.0 program with even worse coverage and higher premiums. If you want to participate in the current program or increase your coverage, you must do so this week. You do not need to wait for open season or a qualifying life event.

I just opted in last night, as I am a new employee to my agency. It required only an abbreviated underwriting questionnaire with no medical appointment required. My coverage is $300/day for 5 years with $547K lifetime cap. I’m age 41 and it’s costing me $122 per pay period. There is a 3% annual compounding inflation rate for the benefit amounts, while the premium stays static (except when the program is rebid). My great grandparents lived until 100, so I expect longevity.

The good thing about the Fed plan - the plan also covers your spouse or kids, so long as they don’t have qualifying medical conditions; it covers informal caregivers (like relatives or a friend who provided care); premium refund benefit upon your death

My spouse has a preexisting medical condition, so doesn’t qualify under the federal LTC plan (or any LTC plan). So we will need to save separately for my spouse, but at least my care is covered.

My father is in skilled nurisng now at a cost of $600 a day. This includes a private room but not memory care. We need some private duty nurses as well. Please be sure to save for yourself as well.

Adding we are paying out of pocket (after medicaire stops) but given his condition, he will likely not be there too long . In his case, insurance would have been a waste.

[Anonymous]

If you can afford it a hybrid plan is worth looking into. It is ltc and in the event you don't need it or use very little of it, it pays out at death. It isn't cheap though!