Report Examines Federal Long-Term Care Insurance Program
A new report examines pros and cons of the Federal Long Term Care Insurance program a benefit for federal employees, postal workers, military and others.
- Virginia Beach-Norfolk-Newport News, VA-NC (1888PressRelease) March 29, 2011 - Open enrollment for the Federal Long Term Care Insurance Program (FLTCIP) begins Monday, April 4 and continues until June 24 (2011). The program is designed to help pay for costs of care when enrollees need help with activities they perform every day, or from a severe cognitive impairment, such as Alzheimer's disease.
Most Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives are eligible to apply for insurance coverage under the FLTCIP.
This is the first abbreviated underwriting opportunity for non-enrolled applicants since 2002. The Federal program currently has over 200,000 participants and during the open enrollment period applicants will answer fewer health questions in order to be eligible for the program.
According to an analysis of the program by the American Association for Long-Term Care Insurance, a national advocacy group, this is a significant opportunity for those who already have some health issues and who may not health qualify for private LTC insurance.
"There are pros and cons that eligible individuals should evaluate," explains Jesse Slome, executive director of the organization and author of the report. "If you are in good health or married, it's very likely you could pay less for equal coverage offered by a leading long-term care insurance provider." John Hancock, one of the nation's leading insurance companies, underwrites the FLTCIP.
The federal program does not offer good-health discounted rates available to individuals. These discounts typically reduce the cost of an individual policy by 10 percent annually and are not lost even when there are changes in health. "More important, the federal plan also does not offer spousal or partner discounts that can amount to as much as 40 percent in annual savings for each person," Slome explains.
The report examined costs for the Federal Plan compared to 2011 rates from 11 leading long-term care insurers.
FLTCIP Plan:
Single Person (age 55): Cost: $ 1,398.12 per-year
Husband / Wife (both age 55): Cost: $ 2,796.24 per-year $150-per-day benefit, 3-year Benefit Period, 4% compound inflation.
LTC Insurer A:
Single Person (age 55): Cost: $ 1,325.00 per-year (Savings $73 per year)
Husband / Wife (both age 55) $ 2,084.00 per-year (Savings $712 per-year) $150-per-day benefit, 3-year Benefit Period, 3% compound inflation includes Preferred Health discount
For Couple: Includes Shared Care Benefit Rider + Spousal Discount for Couple
LTC Insurer B:
Single Person (age 55): Cost: $ 1,655.00 per-year (Costs $257 More)
Husband / Wife (both age 55): Cost: $ 1,985.00 per-year (Savings $811 per-year) $150-per-day benefit, 3-year Benefit Period, 3% compound inflation. Rates for Standard Health
LTC Insurer C:
Single Person (age 55): Costs: $ 1,435.00 per-year (Costs $37 more)
Husband / Wife (both age 55) $ 2,162.00 per-year (Savings $637 per-year) $150-per-day benefit, 3-year Benefit Period, 3% compound inflation includes Preferred Health discount. For Couple: Includes Shared Care Benefit Rider + Spousal Discount for Couple.
Slome notes that the examples above represent costs from leading, highly rated insurance companies. "Costs can vary by as much as 40 percent between insurers," he adds. "It's very important to either do your own comparison shopping or work with a professional who has access to coverage from at least four or five companies."
For more information visit the American Association for Long-Term Care Insurance website at http://www.aaltci.org/federal or call (818) 597-3227. The organization does not sell insurance products but has some 3,500 members in all states who provide no-obligation information.
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