Oversight panel requests info on FLTCIP premium hike

The House Oversight and Government Reform Committee has asked the administrator of the Federal Long Term Care Insurance Program to provide the panel with documents and information regarding the steep premium increases announced last month.

The request came in an Aug. 23 letter to Craig Bromley, president of John Hancock Financial Services. John Hancock Life and Health Insurance Co., the current administrator of the program, was the sole and winning bidder for the new contract to provide FLTCIP coverage.

Last month, OPM announced that nearly all of the 274,000 enrollees in the program will face an average 83 percent increase in premiums.

In their letter to Bromley, the leaders of the oversight committee and the panel’s Subcommittee on Government Operations gave the company until Sept. 2 to provide documents and information related to its FLTCIP award contract, copies of contracts OPM awarded to the firm between 2001 and 2009, information related to the cost analysis that underlies the premium increases, quarterly reports on investment returns on FLTCIP assets, as well as other materials.

See the letter here.

Reader comments

Wed, Apr 18, 2018

OPM really let down the Federal workforce. Many of us joined because we felt under pressure when it was first offered. We expected some increases but the ones posed in 2015 were obscene. I was one of those who opted not to remain with the program so the $10K+ that I paid into it is just sitting in JH hands earning interest while I'll be lucky with rate of inflation to possibly use half of that when needed. And if I die, then it just remains in their coffers. If OPM really wants to do something worthwhile, it will also negotiate to have those funds returned to the employee so they can earn interest or invest it for that rainy day provided they live long enough. This is a crying shame to have employee's put their trust in OPM and JH only to be duped out of biweekly deductions that could've gone to another LTC carrier. GET OUR MONEY BACK TO US. WE DESERVE IT! I'm writing OPM, senators and congressmen because this is a travesty to "CHEAT" federal employees of their honest deductions to what appeared a worthwhile LTC program. I've livid and hope others reading this will pick up pen and paper and do some writing. We need to send a STRONG message to OPM that they failed us and need to recompense. SIT DOWN at the negotiating table and devise a plan to start refunding those LTC dollars to employees NOW!!

Thu, Aug 25, 2016

What is even of more concern is the long term viability of FLTCIP. What happens when the only bidder now, John Hancock, decides on the next FLTCIP contract bid 7 years from now that it is not in their best interest to continue insuring the Federal LTC pool. As in no one insuring us. Are we all left out to hang? No other LTC insurance carrier has the opportunity to keep past premiums and jettison policy holders every seven years. And if you expect the Government and Congress to pick up the slack, good luck with that. For any Federal employee considering LTC insurance, I would highly recommend they steer clear of FLTCIP and shop around in the private sector for a personal policy.

Thu, Aug 25, 2016

So incredibly frustrating for those of us who bought into the program when it first started and have paids thousands and thousands of dollars in premiums. Mine will go up over 150% if I stay with the same coverage. I believe this to be a bait-and-switch scheme.

Thu, Aug 25, 2016

I joined this group when it was established, and I was 56 years old. We were told that OPM would negotiate increases and that they would be kept to a minimum. The last increase, 6 years ago was reasonable. This increase will more than double the cost of my coverage and totally out of line with the long term health cost increases. I believe the data used to justify this increase was flawed and an investigation of JH and OPM practices in this regard are necessary to maintain the integrity of the Program. My confidence has been shaken over this lack of due diligence and concern on the part of JH and OPM to which I had place my trust.

Thu, Aug 25, 2016

I totally agree with your comments. Freeze current rates until a full and comprehensive investigation/audit has been completed. No doubt to anyone the increase JH proposed and got approval for through OPM is not justified at such a steep increase.

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