OPM Examines Underwriting Options for Long Term Care

The Washington Post's "Federal Diary" column on June 6 continued its look at the pending long term care insurance program for federal employees, examining the potential underwriting standards that the Office of Personnel Management plans to negotiate with insurers in order to determine "who is eligible for coverage and who can be excluded." Here are the three options that OPM has asked insurers to consider as they make their bids to participate in the program, which is set to begin in October 2002 and could cover up to 20 million federal employees, retirees and family members, along with members of the military community:

"Guarantee issue underwriting": Employees "would not be asked questions about their health" but would have to prove that are working and "collecting a paycheck." Spouses of employees would "probably" not be offered this option.
"Modified guarantee issue underwriting": Employees would answer a "few health-related questions designed to show that the applicant can perform basic activities of daily living." Spouses could "be asked to provide more information."
"Short-form underwriting": Applicants would answer "several health-related questions designed to determine whether a person might require long term care benefits immediately or within a short period of time."

The Post reports that one of OPM's "top goals" is to provide benefits that carry a premium of 15% to 20% less than what's available on the "open market." OPM will request bid proposals from insurers later this month "and try to award a contract in October," at which point "the underwriting standards and the cost of premiums should be settled" (Barr, Washington Post, 6/7). This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

OPM Examines Underwriting Options for Long Term Care

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