OPM Renews LTC Program

MetLife spokesman Joseph Madden says his company "submitted a strong proposal to OPM that reflected our pricing and risk management philosophy, but OPM made a decision that they felt was in the best interest of the program. We wish John Hancock success with the program during the next contract period and will work closely with them to help ensure a smooth transition."

Madden notes that MetLife continues to provide other benefits to Federal employees, including life insurance, annuities and dental plans.

OPM's new LTC contract includes new benefit options, with increased home health care reimbursement rates, new benefit periods and higher daily benefit amounts. The contract also offers increased payment limits on informal care provided by family members, OPM says.

In related news, premium rates for current federal LTC program enrollees whose policies include automatic compound inflation protection will increase between 5% and 25% around Jan. 1, 2010, OPM officials say.

Before the premium increases take effect, enrollees can decide whether to accept higher premiums and keep their current benefits, reduce benefits to keep premiums level or buy a new LTC policy with the latest benefit options without underwriting, officials say.