Mike Causey

Locking In LTC Premiums

Are your guaranteed long term care insurance premiums going up next year? Senior Correspondent Mike Causey says the solid answer is maybe, maybe not.

Federal News Network Staff

July 21, 2008 4:00 am

3 min read

Are your guaranteed federal long term health care premiums going up?

The answer is a solid: Maybe.

Or maybe not.

Last week we first reported that the LTC contract will be up for renewal next year. The column contained advice from a financial planner who said that if you are looking for LTC group coverage within the federal family, this would be a good time to lock in premiums at their current rate for your age. Younger is cheaper!

But many readers asked the obvious question: If they are currently covered by the federal LTC program could their premiums go up next year?

Good question.

OPM said this: “The contract is due to expire in April of next year and OPM will start the competition process in the very near future. Various insurance companies will have an opportunity to bid and present their options.”

A highly-placed fed who knows the LTC program said this: “The current contract ends on April 30, 2009 and the current premium rates will be in effect at least through that date. Premiums are based on the age when the enrollee submitted his/her application for LTC enrollment.” But he said current premiums may/could “change with the next insurer because the benefits and other options offered by the new insurer may be different.”

Whether premiums (or benefits) change or not, they are based on your age when you sign up so getting in earlier, from that standpoint, is better regardless of what happens to premiums.

Many people who initially signed up for the federal LTC program did so because their age and or health made it difficult if not impossible to find affordable coverage with another group, or individual, plan.

One thing feds have in their favor. Many members of Congress and their families are covered by the federal LTC program. Just as they are covered by the federal employee health benefits program. They don’t like higher premiums any more than you do.

Stay tuned!

Key Economic Indicator?

You know times are tough when new homes aren’t selling while used cars are selling at a premium. Consider this e-mail from a reader:

*”Mike, you know the economy is a mess when homes are depreciating and cars are appreciating. I just sold my 2000 Hyundai Accent for $800 more than it was worth last year, because it is a small car with good mileage. When is the last time we had car appreciating in value? That is just plain wrong! Ah, it was too small for me anyway.” John A.

Good observation John. Now about that Jenny Craig diet…

Nearly Useless Factoid

A new microneedle has been developed that’s being called “painless.” According to New Scientist, the needle, which could be used to draw blood, inject drugs, or as a glucose-level monitor for diabetics, mimics the way a female mosquito sucks blood. Turns out, a mosquito bite does not hurt. The magazine says it’s the anticoagulant saliva that the creature injects to stop your blood clotting that causes inflammation and pain.

To reach me: mcausey@federalnewsradio.com