In 2022 the OPM suspended new applications to the Federal Long-Term Care Insurance Program until December 19, 2024. Recently, the OPM has announced that this hold on new applications will be extended another 24 months.
What is FLTCIP?
FLTCIP was established in 2002 to cover at-home or in-facility custodial or non-medical care for individuals unable to carry out activities of daily living, such as bathing, dressing, or feeding themselves. Though many people assume that their health insurance or Medicare will pay for these expenses, they are generally not covered or qualify for limited benefits. The FLTCIP plan has a current enrollment of around 267,000.
Additional Information
Should application to FLTCIP resume, enrollees will be responsible for the full premium amount, which would likely be lower than those available in the private marketplace. Employees must be eligible for FEHB, you don’t have to be enrolled, to qualify for coverage. Annuitants can enroll in FLTCIP regardless of their FEHB status or eligibility. Current enrollees still maintain their benefits but may not increase their coverage level.
Assessing Coverage and Cost
According to OPM the suspension of applications for an additional 24 months was necessary to allow time for the OPM and the carrier, John Hancock Life and Health Insurance, to “thoroughly assess benefit offerings and establish sustainable premium rates that reasonably and equitably reflect the cost of the benefits provided, as required under 5 U.S.C. 9003(b)(2).”
Skyrocketing Costs
As a historically high percentage of the population begins turning 65, long-term care demand is expected to rise, leading to increased costs. Estimates put the average annual cost of an Assisted Living Facility at $66,000, while a Skilled Nursing Facility comes in at $108,000. The vast majority of Americans don’t have enough savings to cover these costs out-of-pocket.
The Value of Benefits
On average, the federal government’s contributions to an employee’s benefits equate to roughly 38% of their annual salary. While salaries may be lower than those earned by private-sector peers, generous benefits packages are a key tool in recruiting for federal jobs.
To learn more about your unique federal benefits and how to maximize them, reach out to an FRC® trained advisor.
