About FLTCIP Premiums

Long term care insurance (LTCI) is a complex, experience-based product. Because of this, assumptions are made about many factors at the time premiums are established. Examples include frequency and duration of care needed due to certain medical conditions, expected lifespan of enrollees, length of time enrollees keep their coverage, cost of care, estimated returns on investment, and overall program expenses. As the program matures and actual experience is realized, these assumptions and market conditions can change over time and a premium increase may become necessary.

John Hancock Life & Health Insurance Company (John Hancock), the FLTCIP's current insurer, is required to regularly monitor the program's experience and may propose corrective action to the U.S. Office of Personnel Management (OPM) when experience indicates that FLTCIP premiums are not projected to be sufficient to meet future, projected claims costs.

This section is designed to educate consumers on how FLTCIP premiums are managed and invested, what factors lead to possible premium increases, who may pay for long term care, and how OPM and John Hancock remain committed to FLTCIP enrollees.