In 2024, enrollees in the Federal Long-Term Care Insurance Program (FLTCIP) are facing a significant premium increase. The Office of Personnel Management (OPM), which administers the program, announced plans to raise premium rates for current enrollees, citing the need for the increase based on recent program analysis. This marks the first premium increase in seven years for the approximately 267,000 FLTCIP enrollees, including civilian federal employees and military members.
Unlike in previous years, OPM did not provide an average percentage increase for FLTCIP premiums, stating that the increases for enrollees were too variable to calculate an accurate average. However, anecdotal reports indicate that some enrollees could see their premiums rise by as much as 86% if they choose to maintain their current coverage options.
In response to the premium increase, OPM has offered enrollees options to either accept the higher premiums, reduce their coverage to maintain previous rates, or opt out of the program entirely. Some enrollees will experience the premium increases in three phases over the next few years.
For example, one enrollee reported that his premiums would increase from $76.27 per month to $141.90 per month by 2026, representing an 86% increase over three years. Another option for this enrollee is to accept a reduction in his Automatic Compound Inflation Option (ACI) from 4% to 1.88%.
Efforts to stabilize premium increases, such as the introduction of FLTCIP 3.0 in 2019, have been made. However, a recent audit report from OPM’s Office of Inspector General raised concerns about the program’s ability to handle future claims at current premium rates.
Enrollees are required to make their selection regarding the premium increase or benefit reduction by November 9. If no action is taken, the premium increase will automatically take effect in January.
The rising rates or alternative cuts to benefits have compounding effects over time as well. In this example, if the enrollee chose to reduce his benefits to maintain the same premium rate, his daily benefit through FLTCIP would eventually fall well below the average daily cost of long-term care.
Stay tuned for more updates on the FLTCIP premium increases and how they will impact enrollees in 2024 and beyond. Subscribe to our channel for the latest news and information on federal benefits and insurance programs.