OPM Requests Long Term Care Proposals from Insurers

The Office of Personnel Management on June 21 issued a request for bids from the insurance industry to create a long term care program for "several million" civil service employees, military personnel and retirees, the Washington Post's Stephen Barr reports in his "Federal Diary" column. OPM asked insurers to set premiums based on "abbreviated underwriting" for active duty personnel, and for their spouses to be treated "almost the same." Eligibility standards may be "stricter" for retirees and certain other family members, but the Post reports that "remains to be determined." In a document specifying the "technical requirements" that must be met to submit a proposal, OPM asked that weekly benefits range between $400 and $2,000. Enrollees may choose a three-year, five-year or lifetime benefit, with the option of "inflation protection." OPM "urged" insurers to submit bids for "nonstandard" policies, noting that 7% of government workers describe themselves as disabled. The Post reports that OPM expects the industry to form consortiums for submitting bids. Bids are due by Aug. 22 (Barr, Washington Post, 6/21).