Civil Service 

Retirement 

System 

Federal Employees’ 

Group Life 

Insurance Program 

Federal Employees 

Health Benefits 

Program 

Federal Employees 

Retirement 

System 

Federal Long 

Term Care 

Insurance 

Program 

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Retirement and Insurance Service 

Benefits Administration Letter 

Number: 01-905 Date: November 8, 2001 

Subject: The Federal Employees Health Benefits (FEHB) Open Season for 2002 and 

the Federal Long Term Care Insurance Program (FLTCIP) 

As you know, the FEHB open season for 2002 runs from November 12 to December 10, 2001. 

The 2002 FEHB plan guides (RI 70-1, RI 70-5, etc.) and health plan brochures contain a onepage announcement about the new Federal Long Term Care Insurance Program. A copy of that 

announcement is attached to this BAL. The format looks slightly different, but the content is the 

same. The 2002 FEHB open season webpage (www.opm.gov/insure/02) contains a link to this 

announcement (www.opm.gov/insure/ltc/about/index.htm). 

As your employees review the guides and brochures, they may have questions about this 

announcement and the FLTCIP. So we prepared a short list of frequently asked questions that 

also appears on the web (www.opm.gov/insure/ltc/about/faq.htm), with a link from the 

announcement page. A copy of these questions and answers is attached to this BAL. Again, the 

format looks slightly different, but the content is the same. We will also link to the 

announcement directly from the FLTCIP page (www.opm.gov/insure/ltc). 

The announcement says the FLTCIP will be effective in October 2002. That’s because when we 

drafted it, we had not yet received proposals from insurance companies. We didn’t know then if 

it could be available sooner. Yes, it can be! We will have an early enrollment/acceptance 

opportunity some time in early 2002, when eligible individuals who already know about long 

term care insurance and don’t need our educational materials can apply for the insurance. We 

will hold a regular open season sometime around late summer/early fall 2002, following 

extensive education and marketing. 

As always, we appreciate your help as we gear-up to launch this exiting new program. If you 

have any questions, please call Laura Lawrence at 202-606-1433. 

 

 Frank D. Titus 

Attachments Assistant Director for Long Term Care 
Attachment to BAL 01-905 

U. SU.S. Office of Personnel Management 

Federal Long Term Care Insurance Program 

(FLTCIP)

Long Term Care Insurance Is Coming Later in 2002! 

Many FEHB enrollees 

think that their health 

plan and/or Medicare 

will cover their long 

term care needs -- 

Unfortunately, they are 

WRONG! 

How are YOU 

planning to pay for the 

future custodial or 

chronic care you may 

need? 

You should consider 

buying long term care 

insurance. 

The Office of Personnel Management (OPM) will sponsor a high-quality long term care 

insurance program effective in October 2002. As part of its educational effort, OPM asks you to 

consider these questions: 

What is long term care (LTC) insurance? 

It's insurance to help pay for long term care services you may need if you can't take care 

of yourself because of an extended illness or injury, or an age-related disease such as 

Alzheimer's. 

LTC insurance can provide broad, flexible benefits for nursing home care, care in an 

assisted living facility, care in your home, adult day care, hospice care, and more. LTC 

insurance can supplement care provided by family members, reducing the burden you 

place on them.

I'm healthy. I won't need long term care. Or, will I? 

Welcome to the club! 76% of Americans believe they will never need long term care, but 

the facts are that about half of them will. And it's not just the old folks. About 40% of 

people needing long term care are under age 65. They may need chronic care due to a 

serious accident, a stroke, or developing multiple sclerosis, etc. 

We hope you will never need long term care, but everyone should have a plan just in case. 

Many people now consider long term care insurance to be vital to their financial and 

retirement planning.

Is long term care expensive? 

Yes, it can be very expensive. A year in a nursing home can exceed $50,000. Home care 

for only three 8- hour shifts a week can exceed $20,000 a year. And that's before 

inflation! 
Attachment to BAL 01-905 

Long term care can easily exhaust your savings. Long term care insurance can protect 

your savings.

But won't my FEHB plan, Medicare or Medicaid cover my long term care? 

Not FEHB. Look at the "Not covered" blocks in sections 5(a) and 5(c) of your FEHB 

brochure. Health plans don't cover custodial care, a stay in an assisted living facility, or a 

continuing need for a home health aide to help you with other activities of daily living. 

Limited stays in skilled nursing facilities can be covered in some circumstances. 

Medicare only covers skilled nursing home care (the highest level of nursing care) after a 

hospitalization for those who are blind, age 65 or older or fully disabled. It also has a 100 

day limit. 

Medicaid covers long term care for those who meet their state's poverty guidelines, but 

has restrictions on covered services and where they can be received. Long term care 

insurance can provide choices of care and preserve your independence.

When will I get more information on how to apply for this new insurance coverage? 

Employees will get more information from their agencies during the LTC open 

enrollment period in the late summer/early fall of 2002. 

Retirees will receive information at home. 

How can I find out more about the program NOW? 

Our toll-free teleservice center will begin in mid-2002. In the meantime, you can learn 

more about the program on our web site at www.opm.gov/insure/ltc. 

LINK to Frequently Asked Questions on this Fact Sheet 
Attachment to BAL 01-905 

U. S. Office of Personnel Management 

FEHB Open Season Guides and Brochures 

and the 

Federal Long Term Care Insurance Program 

Frequently Asked Questions 

Q. Is the Federal Long Term Care Insurance Program (FLTCIP) part of the Federal 

Employees Health Benefits Program (FEHBP)? 

A. No. It is an entirely separate, unrelated program. 

Q. Why is this page in my health benefits brochure? How does it relate to the long term care 

benefit that my plan or other organization (unions, etc.) offers outside of the FEHB Program? 

A. In general, people eligible to enroll in the FEHB Program will be eligible to apply for 

coverage under the FLTCIP (except District of Columbia employees and retirees. They are not 

eligible for the FLTCIP). So OPM thought that FEHB brochures and open season materials were 

natural vehicles for beginning to get the word out about an important new benefit that is coming 

later in 2002. The FLTCIP has no relationship to long term care insurance policies that may be 

sponsored or sold by organizations associated with the FEHB Program, or any other organization 

for that matter. 

Q. Do I need to be enrolled in the FEHB Program in order to sign up for the new FLTCIP? 

A. No. 

Q. Should I cancel my FEHB enrollment if I'm enrolling in the FLTCIP? 

A. No. It is a separate program providing separate benefits. Your FEHB enrollment doesn't cover 

long term care services. That's what the FLTCIP covers. Conversely, the FLTCIP isn't designed 

to cover health care costs - it provides reimbursement for chronic care services. 

Q. Can I choose a self-and-family option for the FLTCIP? 

A. No. Self-and-family has meaning in the FEHB program, but not in the FLTCIP. In the new 

FLTCIP program, you apply for your own coverage and any of your eligible family members 

apply for their own individual coverage separately. Any of your eligible family members can 

apply for coverage even if you don't. Also, unlike the FEHB Program, the FLTCIP doesn't cover 

minor children but eligible adult (age 18 or over) "children" can apply for coverage. 

Q. Can my spouse sign-up separately? 

A. Yes. He/she can apply for coverage even if you don't. Your spouse must answer the applicable 

underwriting (health-related) questions. You cannot apply for his/her coverage yourself. 
Attachment to BAL 01-905 

Q. Can I sign up for the FLTCIP now, during the current FEHB open season? 

A. No. The program won't be available by the current FEHB open season (November 12 - 

December 10, 2001). 

Q. When will this new program be available? 

A. The FLTCIP will definitely be available by October 2002, and we sure hope significantly 

before then. We will have an early enrollment period sometime during the first half of 2002. 

People who don't need the benefits of an educational and marketing campaign can apply for the 

coverage and if they pass the underwriting (health questions), their coverage will be effective. 

And we will have an open season sometime during the second half of 2002. As soon as we have 

more details we will post them on the web and also communicate them through agency FLTCIP 

implementation coordinators and Federal retirement programs. 

Q. Do I have to be enrolled in the new FLTCIP for the 5 years immediately before my 

retirement (or from my first opportunity to enroll), just like with FEHB, in order to have the 

coverage in retirement? 

A. No. The coverage is fully portable. That means that if you quit your job or retire, you still 

have the long term care insurance coverage, as long as you continue to pay the premiums. 

Q. What insurance company is offering the long term care insurance coverage under this 

program? 

A. We will publicize this information as soon as we've finalized a contract. 

Q. Does that insurance company have a toll-free number to call about the new Program 

and/or a website? 

A. We will publicize the FLTCIP contractor's toll free number and website on the OPM website 

and through Federal agencies and retirement programs as soon as the number is set up. 

Q. How can I find out more about the FLTCIP? 

A. Visit our website at www.opm.gov/insure/ltc. Be sure to click on the Frequently Asked 

Questions. And even if you don't have Internet access, you'll still find out more about our 

program because we will also publicize the FLTCIP contractor's toll free number through Federal 

agencies and retirement programs as soon as we have established the number to call. 

Links to: 

Federal Long Term Care Insurance Home Page | OPM Web Site Index | OPM Home Page