Long Term Care: FLTCIP

[Anonymous]

Fellow Feds:
Word on the street is there is another iteration of the long term care insurance scheme. It seems there is no more lifetime benefits? I was already covered under FLTCIP 2.0 (yes, I was part of the angry mob upset about the premium increase a few years ago) and opted to keep my coverage ($100 daily benefit amount with 4% inflation protection and unlimited lifetime benefits) for slightly higher premiums.

It seems that coverage is eroding...

[Anonymous]

Yes, I think they got rid of many of the benefits for new enrollees last time they increased premiums. But those of us who had them already were grandfathered in, albeit it at much higher rates. (Mine just about doubled.)

[Anonymous]

I think they are rebidding the contract in a few years (2020? 2023?) so you can expect more changes then, and I doubt they’ll be positive.

[Anonymous]

I gave up a few years ago when my rates doubled!!

[Anonymous]

Turns out FLTCIP 3.0 are for new enrollees.

Anyone else notice there is no more unlimited option under FLTCIP 3.0? My take: the actuaries screwed up, OPM didn't do its job as a regulator, and John Hancock saw unlimited benefits as too expensive and cutting into their profits.

[Anonymous]

This has been predicted for some time. It’s why I didn’t sign up for it 4 years ago.

[Anonymous]

Anonymous wrote:This has been predicted for some time. It’s why I didn’t sign up for it 4 years ago.

+1

[Anonymous]

So I think I have 2.0--definitely not 3.0 as I've been signed up for some time. Should I hang on to it? I am nearing retirement.

[Anonymous]

Anonymous wrote:So I think I have 2.0--definitely not 3.0 as I've been signed up for some time. Should I hang on to it? I am nearing retirement.

I would check the quotes under the new FLTCIP 3.0 first. I just calculated my premiums and the premiums would be slightly cheaper but significantly cut back.

FLTCIP 2.0: $100 daily benefit/4% annual compounded inflation option/lifetime benefits = $35 biweekly
FLTCIP 3.0: $100 daily benefit/3% ACIO/5 years worth of benefits not to exceed $182500 = $26.37 biweekly

i noticed they don't have unlimited benefits anymore under FLTCIP 3.0. figures. the actuaries completely underestimated the longevity of feds and thought we'd all die out before tapping in and needing the services.

full disclosure, i bought LTC when i was 24 years old at the prodding of a friend in CSRS. she accurately predicted that the actuaries got it wrong and advised me to get enrolled before they find out of their errors. turns out she was right. i'll be in here for the long haul though so there's no predicting my future premiums.

[Anonymous]

It seems like one of the shadier products offered by OPM. Why not give us something useful like short term disability? Anyways, there is no way I would pay premiums for FLTCIP. They keep raising rates and changing benefits so much that they clearly are hoping you pay for years then just cancel your policy. I have no confidence it would be around when I need it.