1/23/02

Long Term Care Insurance: Soon a Reality

Almost two years ago, Congress passed legislation to create a long-term care benefit for postal and federal employees and retirees. Since then, the office of Personnel Management has been working with outside consultants and experts to develop the program and to solicit bids from various private-sector insurance companies that could provide long-term care coverage. That bidding process is now complete, and the long-term care program, set to become the federal government's largest benefit program, will be fully implemented in October of this year.

Under this program, long-term care insurance covering health services such as nursing homes, home care, hospices, and respite care will be provided by the Metropolitan Life and John Hancock insurance companies, who have been selected to manage the federally sponsored program on a joint basis. The new partnership, called Long Term Care Partners, is still negotiating final costs and details with OPM. Premiums through this program, however, are expected to be roughly 20% lower than those in the private sector.

Long Term Care Partners and the government will conduct an extensive educational campaign over the spring and summer to familiarize all employees and retirees with the program. The campaign will include meetings, broadcasts, internet sites, and a variety of publications explaining the benefits and options available. Regular enrollment will begin in the fall, and will be open to all postal and federal employees, qualified retirees, spouses, parents, and dependents. For those who do not qualify for the coverage because of existing conditions, alternate service plans may be available.

Meanwhile, an early enrollment option should be available beginning in March 2002 for those who have already researched the kind and amount of insurance they would like to purchase. If you are interested in this early enrollment, you should watch future bulletins and the relevant websites for updated information during the next few weeks. You can visit OPM's Long Term Care web site for more information at http://www.opm.gov/insure/ltc.