10/15/09: In testimony yesterday before two committees of the Senate, NTEU National President Colleen Kelley shared examples of the overwhelming opposition expressed to her by NTEU members who signed up for long-term care insurance under FLTCIP as early as 2002, many of whom now face unexpected premium increases of up to 25 percent. Many NTEU members purchased the Automatic Compound Inflation option or ACI, and were told in the promotional materials issued by OPM and the insurance partners –John Hancock and MetLife Insurance Companies – that their premiums would not increase. President Kelley submitted, for the record, four different examples of materials our members were sent that said their premiums would not increase. NTEU is shocked that the program could have so misled individuals who made prudent and forward looking decisions to plan ahead and buy long-term care insurance.

OPM and the John Hancock Insurance Company also testified and were questioned extensively by committee members. They continue to argue that premium increases are required in order to keep the program solvent. They acknowledge that mistakes were made in the past. Now they plan to offer enrollees options to rearrange their benefits, or take a percent less in inflation protection to lessen the impact of the increase.

On October 26, the program plans to begin mailing personal packets to all enrollees describing new benefits and measures that can be taken to reduce or mitigate the premium increases. OPM has announced an Early Decision Period from October 1 – December 14, 2009 in which enrollees can make changes. Kelley called for a longer decision period based on the fact that many enrollees will not even receive their packets until early November, and the clock should not be ticking yet. Several congressmen joined her in calling for this.
Given the misleading and erroneous advertising materials promulgated by OPM and the insurers in 2002, Kelley also suggested to the members of Congress and OPM that they work to find ways to provide some relief to those enrollees who are now subject to stiff and unexpected premium increases, including asking the insurance company to contribute to a fund to correct the past wrongs. While this would take strong action by Congress and OPM, it seems only right.