United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter 

Number: 09-901 Date: September 25, 2009 

Subject: Federal Long Term Care Insurance Program Changes 

This letter provides important information on changes that are taking place in the Federal Long 

Term Care Insurance Program (FLTCIP), effective October 1, 2009. These include a Special 

Decision Period available only to current FLTCIP enrollees due to the availability of new plan 

features and the implementation of a premium rate increase for some enrollees. 

We ask that you read the information in this letter so that you can better assist your employees 

who may have questions about changes to the FLTCIP. As we discuss below, in the near future 

we will also need your help in distributing new materials about the FLTCIP. 

As you can see, this letter is lengthy with a great deal of important information. We’ve included 

the very basics at a glance on the next page for your convenience, with links to the detailed 

information provided in the body of the letter. 
Topic: Page Number: 

New contract term 3 

Contract awarded to John Hancock; Long Term Care Partners 

 remains the administrator 

New benefit plan 3 

 Available for new applicants beginning October 1, 2009 

Applications being accepted 3 

 This includes new hires 

General notification letter 4 

 Current enrollees sent introductory letter in August 

Premium increase 4 

 Affects certain classes of enrollees; effective January 1, 2010 

Special Decision Period for current enrollees 5 

 a) Choices 5 

 Personalized options, including downgrading benefits to avoid 

 premium increase 

 b) Underwriting requirements 6 

 Some opportunities for guaranteed acceptance 

c) Actively at work requirement 6 

Will be in force for abbreviated underwriting changes 

d) Timing of Special Decision Period letters 6 

 Mid to late October 

e) Due date for decisions 6 

 Special Decision Period ends December 14, 2009 

 f) Effective date 7 

 January 1, 2010 effective date for Special Decision Period elections 

 g) For current enrollees only 7 

 This is NOT a general Open Season 

h) Help is available 7 

 Customer Service Consultants are available for consultation at 

 1-800-582-3337 (TTY 1-800-843-3357) 

i) Federal Register Notice 7 

 Rules for the Special Decision Period will be published shortly 

New program materials 7 

Long Term Care Partners will work with agencies. DO NOT use current 

 material after September 30. 

Government sponsorship 8 

FLTCIP is the only government-sponsored long term care insurance 

program for the Federal Family 

Table of Key Dates 8 

Frequently Asked Questions 9 

Posted at www.ltcfeds.com/help/faq/second-contract

Attachment 1 – Sample general notification letter 

Attachment 2 – Important Notice of Change of Insurers

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New contract term

By law, the FLTCIP operates on a seven-year contract cycle. Last year, the Office of Personnel 

Management issued a Request for Proposals for the FLTCIP’s second contract term (2009-2016). 

After a competitive procurement process, OPM awarded the contract to John Hancock Life and 

Health Insurance Company to provide insurance coverage to all current and new FLTCIP 

enrollees. The transition to John Hancock as the sole insurer of the second contract term will 

occur on October 1, 2009. Until that date, insurance will continue to be provided by the John 

Hancock and MetLife consortium that provided insurance for the Program during the first 

contract term. 

Current enrollees’ coverage continues without interruption. 

Long Term Care Partners continues as the program administrator. Their toll-free phone number, 

1-800-582-3337 (TTY 1-800-843-3357), and website, www.ltcfeds.com, remain the same. 

New benefit plan

New benefit options and the accompanying updated premium structure will become available for 

new applicants starting October 1, 2009. The new benefit plan, called “FLTCIP 2.0,” features 

several benefit enhancements and the elimination of some less-popular features, as shown in the 

FLTCIP Plan Comparison. Anyone whose application for coverage is received by Long Term 

Care Partners on and after October 1, 2009 will be applying for coverage under FLTCIP 2.0. 

The benefit plan offered during the first contract term, which we are now calling “FLTCIP 1.0,” 

will no longer be offered after September 30, 2009. Enrollees with FLTCIP 1.0 may keep their 

coverage or move to the new benefit plan, if they wish (see the “Choices” section for more 

information on this topic). Long Term Care Partners will accept applications for FLTCIP 1.0 

coverage through September 30, 2009. FLTCIP 1.0 applications received after September 30, 

2009, will be returned to the applicant, who will be able to re-apply using the FLTCIP 2.0 

application. 

Applications being accepted

New applications for coverage under FLTCIP 1.0 will be accepted until September 30 under 

normal rules. This includes new hires and newly eligible employees, who still have the 

opportunity to apply for coverage with abbreviated underwriting within 60 days of becoming 

eligible. Other eligible individuals will still be able to apply for coverage with full underwriting 

at any time. As mentioned above, applications for FLTCIP 1.0 must be received by Long Term 

Care Partners by September 30, 2009. 

The online application process and downloadable applications will not be available from the 

www.ltcfeds.com website until the transition to FLTCIP 2.0 takes place. If employees are 

interested in applying for coverage before October 1, they should call Long Term Care Partners 

for guidance. Long Term Care Partners will discuss the benefit and premium changes that will 

take place, the timing of those changes, and the appropriate application to use. 

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General notification letter 

In August, Long Term Care Partners sent a letter to each current enrollee with general 

information about the changes to the Program. We have attached a sample copy of the version 

most enrollees received in Attachment 1. This letter enclosed formal documentation noting the 

change to John Hancock as the insurer for the second contract term (Attachment 2) and provided 

information for the enrollee on what to expect in the next several months as the program 

transitions to the new contract. Enrollees in claims status and enrollees in the Alternative 

Insurance Plan received a slightly different letter. 

Premium increase

The general notification letter also informed enrollees that OPM and John Hancock have 

determined that a premium rate increase is necessary for current FLTCIP enrollees (those 

insured under FLTCIP 1.0) with the Automatic Compound Inflation option (ACIO) whose age at 

purchase was 69 or younger. This premium increase will take effect on January 1, 2010, 

although enrollees can downgrade their coverage to avoid the increase if they wish (as discussed 

below). The amount of the increase depends on the person’s age when the insurance was 

purchased: 

Age at Purchase Percentage Increase

65 and younger 25% 

66 20% 

67 15% 

68 10% 

69 5% 

70 and older No increase 

The increase will not apply to enrollees with ACIO whose age at purchase was 70 or older or to 

enrollees who have the Future Purchase Option (FPO). 

We regret that premium increases are necessary. However, certain assumptions used when the 

original premiums were set are no longer sufficient, including the long term return on Program 

investments and other factors such as persistency (the number of people who enroll and continue 

to remain insured). The premium increase is needed so that sufficient funds will be available to 

pay benefits to enrollees in the future. OPM and John Hancock believe it would be irresponsible 

not to increase premiums at this time. 

This is the first increase in premiums since the Program began seven years ago, and it is 

consistent with increases in other public sector long term care insurance programs and the long 

term care insurance industry as a whole. Most long term care insurance carriers have either 

implemented or announced premium increases in the last few years. OPM retained the services 

4
of an unaffiliated actuarial consultant to independently price the FLTCIP product, and the 

consultant confirmed that the announced premium increase is necessary and appropriate. 

Special Decision Period for current enrollees

a) Choices 

Current enrollees will receive personalized letters providing information about changes to their 

premiums, if any, and opportunities to change their benefits. 

All enrollees will receive at least two personalized choices: 

(1) Keep their current benefit levels and accept any applicable premium increase. If the 

enrollee decides to accept this option, no action is required on their part. This is the 

default option -- enrollees who do not take action to request a different choice will 

receive this choice. 

(2) Change their current benefit levels to a specified level of benefits in the FLTCIP 2.0 

plan design with updated premiums. 

Enrollees facing a premium increase will also receive a third option: 

(3) Downgrade their coverage in FLTCIP 1.0 to a specified level of benefits in FLTCIP 

1.0 in order to keep their premiums approximately the same as they are currently 

paying. Please see the FAQs at http://www.ltcfeds.com/help/faq/secondcontract.html for more information. 

No enrollee’s coverage will change unless he/she voluntarily chooses to change it. 

Enrollees may request other changes to their coverage not specified in their Special Decision 

Period letter. They will be able to model some changes on the web at www.ltcfeds.com. They 

may need to call Long Term Care Partners at 1-800-582-3337 (TTY 1-800-843-3357) to discuss 

these changes, including the premiums for coverage and underwriting requirements. 

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b) Underwriting requirements 

Action during Special Decision Period Underwriting required 

Choose one of the personalized choices 

presented in their letter 

No 

Make a change in coverage that is different 

from what is presented in letter: 

Depends on whether the change results in 

an overall increase or decrease in benefits: 

a) Changes that result in an overall increase 

in benefits, whether in FLTCIP 1.0 or 

FLTCIP 2.0 

- Abbreviated underwriting for current 

enrollees who are now active workforce 

members or spouses of active workforce 

members (see actively at work requirement 

below) 

- Full underwriting for all other current 

enrollees 

If a current employee’s employment status 

changes after submitting an abbreviated 

application but before the increased 

coverage becomes effective, the employee 

must reapply with full underwriting. 

b) Changes that result in an overall decrease 

in benefits 

No 

 c) Actively at work requirement 

In most cases, the effective date of Special Decision Period changes in coverage will be 

January 1, 2010. For any Special Decision Period change that required abbreviated underwriting 

to go into effect on that date, the active workforce member must be actively at work at least 1⁄2 of 

one day during the month of December 2009. 

d) Timing of Special Decision Period letters 

The mailings will begin in mid-October and be staggered over several weeks, so enrollees will 

not all receive their letters at the same time. Mailings to enrollees with the Future Purchase 

Option will begin October 12. Mailings to enrollees with the Automatic Compound Inflation 

Option will begin October 26. 

e) Due date for decisions 

The Special Decision Period ends Monday, December 14, 2009. Elections must be submitted by 

that date. 

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f) Effective date 

Benefit and/or premium changes will generally take effect January 1, 2010. Changes requiring 

underwriting may have a later effective date depending on the length of the underwriting 

process. 

g) For current enrollees only 

The Special Decision Period is for current FLTCIP enrollees only. It is not a general open 

season for all employees and annuitants to elect FLTCIP coverage. We expect to hold a FLTCIP 

Open Season for all individuals eligible to apply in late 2010. However, eligible individuals may 

apply for coverage under the FLTCIP at any time with full underwriting.

h) Help is available 

We recognize that these Special Decision Period choices can be difficult ones to make. We are 

making the Special Decision Period documents as simple as can be for a complicated decision, 

but we want to emphasize that enrollees should not feel that they have to make decisions without 

assistance. Long Term Care Partners has specially trained Customer Service Consultants 

standing by to help current enrollees understand their choices. Live help is available from 8 

a.m. to 7 p.m. Eastern Time at 1-800-582-3337 (TTY 1-800-843-3357). 

i) Federal Register Notice 

We will issue a Federal Register Notice with rules for this Special Decision Period in the near 

future. These rules pertain only to changes that existing enrollees may make during that time. 

New program materials

Long Term Care Partners is designing new program materials for the October 1, 2009 launch of 

FLTCIP 2.0. The new material will include a revamped information kit and program overview 

brochure that includes information for new hires. The www.ltcfeds.com website will also be 

updated. Long Term Care Partners Account Managers will personally contact agency benefits 

officers to discuss the new material. Contact information for LTCP Account Managers is at 

http://www.ltcfeds.com/ABO/accountmanagercontacts.html. 

It is extremely important that you stop using all prior program material after 

September 30, 2009. Please destroy all old FLTCIP marketing/educational material at that 

time. 

Although materials in the FLTCIP 1.0 application packages and the Benefit Booklet have always 

stated when rates can be increased, in retrospect we realize we could have emphasized this 

critical information more prominently. We have applied these lessons learned in preparing the 

new material. 

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Government sponsorship

Because the FLTCIP is the largest group long term care insurance program in the country, it 

attracts a great deal of attention and scrutiny throughout the industry. Especially now when 

changes are being made to the Program, you may be approached by insurance agents not 

affiliated with the FLTCIP, asking for permission to present information on long term care and 

long term care insurance to your employees. 

While Federal employees should be informed consumers so that they can make their own best 

decisions, it is also important that the information they receive is accurate. Please keep in mind 

that the FLTCIP is the only government-sponsored long term care insurance program for 

the Federal Family and Long Term Care Partners is the only entity authorized by OPM to 

represent it. 

 

Table of Key Dates

Event Date 

General Notification Letter sent to current 

FLTCIP enrollees 

August 2009 

Last day applications for FLTCIP 1.0 will be 

accepted by Long Term Care Partners 

September 30, 2009 

John Hancock becomes sole FLTCIP insurer October 1, 2009 

First day for new applications for FLTCIP 2.0 October 1, 2009 

Special Decision Period packages sent to 

current enrollees 

Spread over a few weeks. Mailings begin 

October 12 for enrollees with the Future 

Purchase Option and October 26 for enrollees 

with the Automatic Compound Inflation 

Option. All mailings will be completed in 

October. 

Deadline for making Special Decision Period 

elections 

December 14, 2009 

Most Special Decision Period elections 

effective 

January 1, 2010 

Premium increase for FLTCIP 1.0 effective January 1, 2010 

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Frequently Asked Questions

Please see the FLTCIP website for answers to many frequently asked questions about the new 

contract at http://www.ltcfeds.com/help/faq/second-contract.html. 

We thank you for your cooperation as we continue to transition to the FLTCIP’s new contract 

term. If you have any questions, you can email us at ltc@opm.gov. You may also contact your 

Long Term Care Partners Account Manager directly for assistance. 

 Kathleen M. McGettigan 

 Deputy Associate Director 

 Center for Retirement and Insurance Services 

Attachments 

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