Reply to Should I apply for Federal Long Term Care before they close in a few days?

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Reply to "Should I apply for Federal Long Term Care before they close in a few days?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If $456,250 Maximum Lifetime Benefit doesn't go up over time, that's not much. I'd self insure.[/quote]

If you take the inflation option, it goes up 3% per year compounded.[/quote]

But there’s no cap on premiums & the premiums will go up more. That’s why OPM is suspending enrollment.

https://www.govexec.com/pay-benefits/2022/12/opm-will-suspend-long-term-care-insurance-applications-sizeable-premium-increase-looms/380467/

“Reading the tea leaves, instituting a suspension of applications shows that there’s a lack of faith or trust that it’s designed in a way that can be sustainable,” he said. “The first premium increase was around 25%, the second was as high as 125% [in some cases], and 83% on average. These premiums were quoted with the intention of staying stable for the lifetime of the coverage, which is someone’s life. And it’s not just federal workers’. They were just not priced correctly to begin with.”

After the previous round of premium hikes, OPM instituted “FLTCIP 3.0,” which allows current enrollees to adjust their coverage downward in order to reduce the impact of rising premiums. Even with that change, Hatton said OPM likely made the right decision by suspending applications.

“If you can’t accurately quote someone what the cost will be for a product, it shouldn’t be open ended,” he said. “That said, the reason these premiums are going up is costs are very high, and people have to figure out how to plan for long term care costs, and there’s no public option aside from Medicaid, which only provides catastrophic coverage if you’re completely impoverished yourself.”[/quote]

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