Benefits Administration Letter 

Number: 16- 901 Date: July 18, 2016 

United States 

Office of Personnel Management 

 

The Federal Government’s Human Resources Agency

 

Subject: Federal Long Term Care Insurance Program (FLTCIP)

2016 Enrollee Decision Period 

 

Purpose

The purpose of this Benefits Administration Letter is to provide guidance about an Enrollee 

Decision Period for current enrollees in the Federal Long Term Care Insurance Program (FLTCIP), 

to be held from July 18 to September 30, 2016. 

New Contract Term 

Per Federal law, the U.S. Office of Personnel Management (OPM) must issue a new contract 

term every seven years for FLTCIP. In addition, the law requires that premiums must reasonably 

and equitably reflect the cost of benefits. OPM engaged in a full and open competitive bidding 

process for the third FLTCIP contract term and received a single bid. The FLTCIP contract was 

awarded to John Hancock Life & Health Insurance Company, effective May 1, 2016. John 

Hancock proposed higher premiums because recent analysis of the program, using updated 

assumptions based on identified trends and actual claims experience, indicated that the current 

FLTCIP premiums would not be sufficient to meet the future, projected costs of the benefits. 

The new premium rates are those established as a result of this competitive process. Most 

current enrollees are impacted by the premium increase, which will take effect on November 1, 

2016. Therefore, OPM is holding an enrollee decision period for current enrollees from July 18 

to September 30, to give them the opportunity to review their current coverage and make 

decisions that allow them to accept or alleviate the premium increase. 

Long Term Care Partners (LTCP), LLC, a subsidiary of John Hancock, will continue to 

administer the program. Their toll-free phone number, 1-800-582-3337 (TTY 1-800-843-3337),

and website, www.LTCFEDS.com, remain the same. 

Enrollee Decision Period for Current Enrollees 

a) Personalized Options 

Long Term Care Partners (LTCP) will send a 2016 Enrollee Decision Period offer package with 

personalized options to impacted enrollees. It will include an introductory letter, a return 

envelope, an informational brochure, and an options form with detailed information about the 
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enrollee’s current coverage and options to change coverage in an effort to reduce the impact of 

the premium increase. At least one of the options will allow the enrollee to reduce coverage in 

order to maintain the current premium at or below the current level. In general, enrollees will be 

able to choose: 

 a premium-neutral option to fully offset the premium increase 

 a partial increase, accepting roughly half the premium increase along with moderate 

coverage reductions; or 

 the full premium increase to retain the current benefits and inflation protection 

Eligible enrollees may also elect the paid-up, limited benefit. This option allows enrollees whose 

premium increase is beyond a certain percentage to stop paying premiums and keep paid-up 

coverage with a reduced level of benefits. Enrollees may request other benefit selections not 

indicated on the Benefit Options Form, but these options may require underwriting and/or a 

higher premium. 

The current enrollees who will receive an offer package include: 

 enrollees whose age at purchase was 79 years or younger 

 enrollees who have standard FLTCIP coverage and are not enrolled in the FLTCIP’s 

Alternative Insurance Plan 

 enrollees who applied for coverage before new application rates were raised on August 1, 

2015

 enrollees who are not currently eligible for benefits or awaiting a decision on a pending 

claim 

If an enrollee does not respond by the September 30, 2016, deadline, the current coverage will 

remain the same and the premium will increase. 

b) Underwriting Requirements 

Eligible enrollees who choose to reduce their coverage or keep their current coverage (with the 

premium increase) will be able to do so without underwriting. Coverage increases require full 

underwriting. 

c) Timing of the 2016 Enrollee Decision Period Package 

The offer package mailings will begin in mid-July and will be staggered over several weeks; 

enrollees will not receive their packages at the same time. Enrollees may also visit 

www.LTCFEDS.com/myaccount to sign into or register for a MyLTCFEDS account to review 

their personalized options. 

d) Due Date for Decision 

The deadline for enrollees to submit a selection is September 30, 2016. If an enrollee does not 

respond by September 30, 2016, the enrollee’s coverage will remain the same and the premium 

will increase. 
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e) Effective Date 

The effective date of coverage changes that do not require underwriting will be November 1, 

2016, regardless of when the Enrollee Decision Period request is received. Coverage changes 

requiring underwriting, if approved, will be effective the first day of the month following 

approval of the request, but not before November 1, 2016. 

f) For Current Enrollees Only 

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

season for all employees, annuitants, and qualified relatives. 

g) Educational Resources 

The 2016 Enrollee Decision Period offer packages will include information on alternative benefit 

options that an enrollee can select in order to help reduce the impact of the premium increase. 

The FLTCIP website www.LTCFEDS.com/QA has general questions and answers on the 

contract award and the Enrollee Decision Period. The FLTCIP website, www.LTCFEDS.com,

will also have instructional videos that enrollees can access in their My LTCFEDS online 

account to help in the decision-making process. These videos will be specific to the individual 

enrollee’s plan options. Webinars will be available to help enrollees make their selection during 

the Enrollee Decision Period. LTCP has a call center with trained program consultants to help 

current enrollees understand their choices. Personalized assistance is available from 8 a.m. to 8 

p.m. (ET) at 1-800-582-3337 (TTY 1-800-843-3357). 

h) Enrollee Decision Period Resources for Agency Benefits Officers 

Long Term Care Partners (LTCP) developed a dedicated web page for agency benefits officers, 

Human Resource (HR) professionals, and similar personnel who work with employees, retirees, 

and affinity group members. OPM encourages HR professionals to use the web page’s resources 

to help enrollees understand their coverage and the options available to them. A fact sheet has 

also been created to help agencies handle questions. Please share with all agency personnel—

especially agency-shared service centers—who field benefits questions from employees and 

retirees. 

In addition, HR professionals can register for an LTCP informational training webinar about the 

2016 Enrollee Decision Period. The event will air live on Thursday, July 21, 2016, at 2 p.m. 

(ET). You may also register to view the on-demand version, if you cannot attend the live event. 
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If you have any questions regarding this Benefits Administration Letter, please contact the 

FLTCIP Program Office at ltc@opm.gov or www.LTCFEDS.com/SecureEmail. You may also 

contact your FLTCIP account manager directly for assistance. 

 

 

Sincerely, 

John O’Brien

Director, Healthcare and Insurance