The Federal Long Term Care Insurance Plan is a group plan provided by the U.S. Office of Personnel Management in conjunction with John Hancock Long Term Care Insurance. Many Federal employees are eligible to apply for coverage including Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and qualified relatives. The Federal program is the largest group long term care insurance plan in the United States with over 200,000 plan participants.
Advantages To The Federal Long Term Care Insurance Plan (FLTCIP)
- Pre-Existing Health Conditions – As any group plant, Primary Insureds in poorer health will be accepted for coverage under the Federal program, however their family members must pass underwriting standards. Family members in poor health may not be accepted.
- No Excusion for Acts of War – For those in the military, this may be a positive benefit.
Disadvantages To The Federal Long Term Care Insurance Plan (FLTCIP)
- Expensive – Premium rates are higher when unhealthy people can enroll alongside healthy individuals. People in generally good health can get competitive coverage and pay less with a private plan.
- Restricted Eligibility – Only those in the Federal family may apply.
- Family Health Restriction – Family members are screened for health and are not accepted automatically.
- No Spousal Discount – Marrieds who apply together do not enjoy discounted rates.
- No Shared Care Benefits – Policy benefits cannot be blended between the couple.
- No Survivorship Benefit – Survivor’s policy is not “paid up” if their insured spouse dies.
Although the Federal Long Term Care Insurance Plan does not offer many of the benefits that private long term care insurance does, it may be the only way those already experiencing health problems can obtain long term care coverage. Applicants with good health will have greater choice and pay less for their policy with private long term care insurance.