If you have been waiting for or planning on the federal long term care insurance, we have some important, albeit potentially disappointing, news regarding the Federal Long Term Care Insurance Program (FLTCIP) [1].
Right now, you can’t apply for new coverage or increase your existing coverage [1, 2]. The program has been temporarily paused for new applications since December 2022, and that pause is officially extended until at least December 19, 2026 [1].
The Office of Personnel Management (OPM) and John Hancock are working to sort out rising costs and market challenges to make sure the program is stable for the long haul.
Here’s what this means for you:
- If you’re already enrolled: Your current policy is still active and valid, and claims are being paid just fine [1]. You just can’t bump up your coverage limits during this suspension.
- If you were planning to enroll: New applications are on hold for now. OPM suggests you investigate other private long-term care insurance options available on the market.
- Why the pause? The program’s hit some hurdles, like major premium increases for some members (we’re talking up to 86%!) and disappointly, industry has shown little interest, so there is a lack of competition for the contract.
We get that long-term care planning is important. If this coverage is important to discuss now, call me at 888-415-7905.
