Regardless of how big (or small) the 2017 federal pay raise is, and even if retirees got a modest cost-of-living adjustment, it won’t begin to match the rise in health insurance and long-term-care premiums that are coming up for many active and retired feds.

Some experts are predicting a 10 percent increase in some of the plans setup by the Affordable Care Act, including the exchange for Washington, D.C. Many members of Congress and some Capitol Hill staffers are now in that program.

Others say that despite the low inflation rate caused primarily by cheap oil prices, premiums for many of the plans in the Federal Employee Health Benefits Program will go up, again, because of medical inflation. More than 8 million people are covered by the FEHBP, which offers 30 national plans and options, plus localized HMOs.

Couples who signed up for the new self-plus-one option last year may find that in some cases they will be better off next year returning to family coverage. Premiums, to be announced later this year, will depend on experience of the plans. If lots of young, healthy childless couples signed up, the premium increase could be slight. Or even go down. But if lots of older retirees with more medical expenses signed up, that could have an impact on 2017 premiums.

The good news is that Uncle Sam will continue to pay anywhere from 72 percent to 75 percent of the total premium for the health plans, even if premiums jump big time.

People who have or plan to purchase Long Term Care insurance should expect a substantial increase. It will be announced shortly.

LTC is expensive, and the costs associated with it are going up nationwide. Many companies that once offered LTC care have gone out of that business because prices for in-home or institutional care have risen sharply, people are living longer and more of them are using LTC for services that are not covered by Medicare.

In my case, I purchased LTC insurance years ago, when I was at the Washington Post. The insurance company that was the underwriter from the Post plan has since gone out of the LTC business. Those who were in it were grandfathered in, meaning we still get coverage as promised at the group rate. But the fact is so many other companies that once offered LTC are losing money, tells you a lot about where costs have been going. And why many of you will need LTC coverage — with a group rate — more than ever.

As they say, Keep Calm And Carry On. There’s nothing you can do except be a very careful shopper during the upcoming open season.

Nearly Useless Factoid

By Michael O’Connell

British comedian Benny Hill’s birth name is Alfred Hawthorne Hill.

Source: Wikipedia

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