[Federal Register Volume 74, Number 189 (Thursday, October 1, 2009)]
[Notices]
[Pages 50845-50846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23727]


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OFFICE OF PERSONNEL MANAGEMENT


Notice of Federal Long Term Care Insurance Program Special 
Decision Period for Current Enrollees

AGENCY: U.S. Office of Personnel Management.

ACTION: Notice of Federal Long Term Care Insurance Program special 
decision period for current enrollees.

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SUMMARY: The U.S. Office of Personnel Management (OPM) is announcing 
rules for current enrollees in the Federal Long Term Care Insurance 
Program (FLTCIP) who will be eligible to change coverage during a 
limited Special Decision Period to be held this year. These rules 
pertain only to current eligible enrollees who may make changes because 
of new plan features and premium rate increases for some enrollees. 
Eligible enrollees in the standard plan as of October 1, 2009, and 
those individuals whose application for the standard plan was received 
on or before September 30, 2009, and whose enrollment was approved may 
make changes during the Special Decision Period, provided they are not 
in benefit eligible status.

DATES: The Special Decision Period will be from October 1 through 
December 14, 2009.

[[Page 50846]]


FOR FURTHER INFORMATION CONTACT: Enrollees may call 1-800-LTC-FEDS (1-
800-582-3337) (TTY: 1-800-843-3557) or visit http://www.ltcfeds.com. 
For purposes of this Federal Register notice only, the contact at OPM 
is John Cutler, Senior Policy Analyst, Strategic Human Resources Policy 
Division, at <a href="/cdn-cgi/l/email-protection#2c46434442024f595840495e6c435c41024b435a"><span class="__cf_email__" data-cfemail="4a2025222464293f3e262f380a253a27642d253c">[email protected]</span></a> or (202) 606-0735.

SUPPLEMENTARY INFORMATION: The Long-Term Care Security Act (Pub. L. 
106-265) directs OPM to provide periodic opportunities for eligible 
persons to apply for coverage in the FLTCIP. OPM has issued regulations 
(5 CFR 875.402-875.404) which set forth procedures for FLTCIP open 
seasons. This notice is issued under the provisions of Sec.  
875.402(b). The Special Decision Period described in this Notice is 
solely for current enrollees to make coverage changes. Eligible 
enrollees will be notified directly about the Special Decision Period 
by Long Term Care Partners, the program administrator.
    Enrollees who have plan options subject to a rate increase 
beginning in January 2010 will be offered a specified ``landing spot'' 
to allow them to reduce their coverage in order to keep their premium 
approximately the same amount as it is today. Eligible enrollees will 
also be given an opportunity to change to the new FLTCIP plan design 
which offers some features different than those currently available. 
Enrollees who make coverage changes outside of this Special Decision 
Period may be subject to full underwriting, as specified in Sec.  
875.403, and different premium calculation rules.
    Qualified enrollees under these special rules: Persons enrolled in 
the FLTCIP standard plan as of October 1, 2009, and those individuals 
whose application for the standard plan was received on or before 
September 30, 2009, and whose enrollment was approved are eligible to 
make changes during the Special Decision Period, provided they are not 
in benefit eligible status.
    Underwriting requirements: Eligible enrollees who wish to reduce 
their coverage or keep their current coverage (subject to any 
applicable rate increases) will be able to do so without underwriting. 
They may also change to the specified ``landing spot'' without 
underwriting. No enrollee's coverage will change unless he or she 
voluntarily chooses to change it. Other coverage changes may require 
underwriting.
    If underwriting is required, eligible enrollees who are active 
workforce members or spouses of active workforce members will be 
subject to the abbreviated underwriting standards in effect for the 
FLTCIP as of October 1, 2009. In accordance with Sec.  875.404(b)(2), 
active workforce members who seek to make changes that require 
underwriting must be actively at work in order for coverage changes to 
become effective. For decision period changes with a January 1, 2010, 
effective date, actively at work requirements are modified. For a 
coverage change to become effective January 1, 2010, the active 
workforce member must be actively at work one day during the month of 
December 2009. If underwriting is required for any other eligible 
enrollees, they will be subject to the full underwriting standards in 
effect for the FLTCIP as of October 1, 2009.
    Billing age: For enrollees who retain their current benefits, 
premiums are based on the enrollee's age at purchase. For enrollees who 
choose to change their benefits, premiums will be determined on a 
blended rate basis, taking into account the enrollee's age at purchase 
and the enrollee's attained age as of January 1, 2010.
    Premiums: Certain current enrollees in the FLTCIP will experience a 
premium increase, effective January 1, 2010. The premium increase 
affects current enrollees who applied to the FLTCIP on or before 
September 30, 2009, who have the Automatic Compound Inflation Option 
(ACIO) and whose age at purchase was under 70. Enrollees affected by 
the premium increase will receive detailed written information about 
the specific amount of the increase from Long Term Care Partners. Long 
Term Care Partners will also provide information on how enrollees may 
reduce their benefits in order to avoid the premium increase and keep 
their new premium approximately the same as their current premium. All 
eligible enrollees will also be given an opportunity to change to the 
new FLTCIP plan design. Premiums for coverage changes will vary 
according to the enrollee's age and the coverage options selected.
    Effective date: The effective date of coverage changes that do not 
require underwriting will be January 1, 2010, regardless of when the 
Special Decision Period request is received. Coverage changes requiring 
underwriting will be effective January 1, 2010, or the first day of the 
month following approval of the request, whichever is later.
    Enrollees who make coverage changes under these provisions will 
receive a revised Benefit Booklet and Schedule of Benefits. Enrollees 
will have 30 days after the date these items are mailed to cancel their 
Special Decision Period coverage changes and revert to their original 
coverage or to make another Special Decision Period choice. Enrollees 
will receive a refund of any difference in premiums paid for a coverage 
change that is cancelled within those 30 days. If enrollees cancel the 
coverage change after 30 days, they will not receive a refund of any 
difference in premiums paid for the changed coverage, unless those 
premiums are for a period after the effective date of the cancellation.
    OPM expects to hold a FLTCIP Open Season for all individuals 
eligible to apply in late 2010. We will issue a separate Notice in the 
Federal Register describing the procedures for that Open Season at a 
later time.

    Authority:  5 U.S.C. 9008; 5 CFR 875.402.

U.S. Office of Personnel Management.
John Berry,
Director.
[FR Doc. E9-23727 Filed 9-30-09; 8:45 am]
BILLING CODE 6325-39-P


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