Fed’s Long-Term Care Just Got More Expensive

Long-term care premiums are expected to increase for federal employees around the end of 2016.

The Office of Personnel Management agreed to terms on a new seven-year contract with John Hancock Life and Health Insurance Company this past Tuesday.

OPM Secretary, Sam Schumach, said that the increase is due to longer lifespans and low returns on investments from program’s trust fund. (At least one of those problems is a good one to have.)

The increase will occur “no earlier than Fall 2016” according to Schumach and there is no solid estimate on the increase, though signs point to it increasing from anywhere between 5-25%. The last time John Hancock signed a new contract, in 2009, premiums increased 25%.

We will update as soon as we have new information.

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