NARFE Calls for Hearings on FLTCIP Premium Increases

FOR IMMEDIATE RELEASE Contact: Jessica Klement
August 1, 2016 703-838-7760
  jklement@narfe.org


Alexandria, VA – In response to the dramatic increases in premiums for enrollees in the Federal Long Term Care Insurance Program (FLTCIP), Richard G. Thissen, National President of the National Active and Retired Federal Employees Association (NARFE), sent letters to the congressional committees of jurisdiction – the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, and the Senate Special Committee on Aging – requesting hearings on the matter.

“Nearly 264,000 federal employees will face an average 83 percent premium increase, an estimated $111 per month,” Thissen noted in the letters. “This situation has many NARFE members stunned and outraged.”

Thissen asked the committees to hold hearings “to seek information on the reason for these new, massive increases and to discuss policy options to mitigate the effect of premium increases now and in the future.”

There is a precedent for hearings on this issue. A similar scenario unfolded in 2009, when the Office of Personnel Management (OPM) awarded a seven-year contract to John Hancock Life & Health Insurance Company and premiums rose by up to 25 percent. At that time, the Senate Special Committee on Aging and the Senate Subcommittee on the Federal Workforce held a joint hearing on the increases, at which NARFE testified.

Premium increases have been 83 percent, on average, and could be as high as 126 percent. July 18 marked the start of the enrollee decision period. “Enrollees are now faced with difficult choices – pay substantially higher premiums; reduce coverage substantially; or, in the worst case scenario, drop the coverage some have paid into for more than 14 years,” Thissen explained. “I am stunned at the extent of the increase and angry that this type of financial pressure is being placed on federal employees and retirees,” he continued. “This situation should not have occurred and signals the need for change in the structure of FLTCIP to prevent federal employees and retirees from ever facing such huge, unexpected increases again.”

The 2016 FLTCIP enrollee decision period runs until September 30. Enrollees impacted by the premium increases have been sent an offer package with personalized plan change options that allow them to keep their current coverage with increased premiums; keep current premiums but reduce coverage; or split the difference by reducing coverage and increasing premiums, but by less for each.

New premiums will take effect November 1, 2016. For those paying premiums from their annuities, the first increased premium payment will be reflected in the December 1 annuity payment.

For additional information on the enrollee decision period and premium increases for the FLTCIP, please see NARFE’s dedicated web page on the topic, available here.

                                                                           # # #

The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the retirement interests of nearly five million current and future federal annuitants, spouses and survivors.

National Active and Retired

FEDERAL EMPLOYEES Association

NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.

NARFE Calls for Hearings on FLTCIP Premium Increases

FOR IMMEDIATE RELEASE Contact: Jessica Klement
August 1, 2016 703-838-7760
  jklement@narfe.org


Alexandria, VA – In response to the dramatic increases in premiums for enrollees in the Federal Long Term Care Insurance Program (FLTCIP), Richard G. Thissen, National President of the National Active and Retired Federal Employees Association (NARFE), sent letters to the congressional committees of jurisdiction – the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, and the Senate Special Committee on Aging – requesting hearings on the matter.

“Nearly 264,000 federal employees will face an average 83 percent premium increase, an estimated $111 per month,” Thissen noted in the letters. “This situation has many NARFE members stunned and outraged.”

Thissen asked the committees to hold hearings “to seek information on the reason for these new, massive increases and to discuss policy options to mitigate the effect of premium increases now and in the future.”

There is a precedent for hearings on this issue. A similar scenario unfolded in 2009, when the Office of Personnel Management (OPM) awarded a seven-year contract to John Hancock Life & Health Insurance Company and premiums rose by up to 25 percent. At that time, the Senate Special Committee on Aging and the Senate Subcommittee on the Federal Workforce held a joint hearing on the increases, at which NARFE testified.

Premium increases have been 83 percent, on average, and could be as high as 126 percent. July 18 marked the start of the enrollee decision period. “Enrollees are now faced with difficult choices – pay substantially higher premiums; reduce coverage substantially; or, in the worst case scenario, drop the coverage some have paid into for more than 14 years,” Thissen explained. “I am stunned at the extent of the increase and angry that this type of financial pressure is being placed on federal employees and retirees,” he continued. “This situation should not have occurred and signals the need for change in the structure of FLTCIP to prevent federal employees and retirees from ever facing such huge, unexpected increases again.”

The 2016 FLTCIP enrollee decision period runs until September 30. Enrollees impacted by the premium increases have been sent an offer package with personalized plan change options that allow them to keep their current coverage with increased premiums; keep current premiums but reduce coverage; or split the difference by reducing coverage and increasing premiums, but by less for each.

New premiums will take effect November 1, 2016. For those paying premiums from their annuities, the first increased premium payment will be reflected in the December 1 annuity payment.

For additional information on the enrollee decision period and premium increases for the FLTCIP, please see NARFE’s dedicated web page on the topic, available here.

                                                                           # # #

The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the retirement interests of nearly five million current and future federal annuitants, spouses and survivors.

National Active and Retired

FEDERAL EMPLOYEES
Association



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NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.