The Federal Long Term Care Insurance Program (FLTCIP) is designed to help federal employees, annuitants, uniformed service members, and their families cover the significant costs of long-term care. But Is The Federal Long-term Care Insurance Program A Good Deal, and what do you need to know, especially with the current program suspension?
FLTCIP aims to provide a safety net for those who require assistance with daily living activities or who suffer from severe cognitive impairment, such as Alzheimer’s disease. Historically, when open, most federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives have been eligible to apply. Eligibility for employees generally hinges on FEHB eligibility, not necessarily enrollment, while annuitants have fewer restrictions. It’s important to note that certain pre-existing conditions could affect approval for coverage.
However, it’s crucial to be aware that the Office of Personnel Management (OPM) has extended the suspension of FLTCIP enrollment until December 19, 2024. This means that individuals not currently enrolled cannot apply for coverage, and existing enrollees are restricted from increasing their coverage during this period. This suspension, now extended for 24 months, is attributed to “ongoing volatility in long term care costs and a diminished insurance market.” OPM states this market instability makes it challenging to offer benefits with premium rates that accurately reflect the cost of care, as legally required.
So, is FLTCIP a good deal? When the program is active and well-managed, it can offer valuable protection against potentially devastating long-term care expenses. The federal backing adds a layer of security. However, the current suspension and the reasons behind it – market volatility and cost concerns – raise important questions. It suggests that even government-sponsored programs are grappling with the increasing costs and complexities of long-term care insurance.
For those interested in learning more about FLTCIP and future program availability, you can contact Long Term Care Partners at 1-800-582-3337 or visit their website. Resources like the LTCFEDS Care Navigator are also available to support caregivers and those navigating long-term care options. While enrollment is paused, understanding the program’s potential benefits and staying informed about its future is a prudent step for eligible individuals planning for long-term care needs.
