Federal Long-Term Care Insurance Program: Examining Premium Increases

Hearing Date: November 30, 2016 2:00 pm 2154 Rayburn HOB


  • To examine premium increases for enrollees of Federal Long-Term Care Insurance Program (FLTCIP) and what steps are being taken to mitigate future increases.
  • To understand the challenges the long-term care industry faces in providing quality service at affordable premium rates.


  • In 2016, the U.S. Office of Personnel Management (OPM) awarded the only bidder, John Hancock Insurance, to administer FLTCIP. Under the contract, OPM announced large premium increases starting November 1, 2016 for most of the program’s 274,000 enrollees at an average increase amount of $111, or 83 percent.
  • Enrollees in FLTCIP were notified of premium increases on July 18, 2016, and were given until September 30, 2016, to make a decision regarding their long-term care package.
  • According to media reports, more than 96 percent of FLTCIP enrollees who had responded as of October 19 kept some form of coverage. Less than four percent of enrollees decided to abandon the program altogether.


Witnesses and testimonies

Name Title Organization Panel Document
Mr. Michael Doughty President General Manager John Hancock Insurance Document
Mr. John O'Brien Senior Advisor for Health Policy U.S. Office of Personnel Management Document
Ms. Laurel Kastrup Chair of the Health Financial Reporting and Solvency Committee American Academy of Actuaries Document
Mr. Richard G. Thissen National President National Archive and Retired Federal Employees Association Document
Mr. Marc A. Cohen, Ph.D. Clinical Professor of Gerontology University of Massachusetts - Boston Document

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