Federal Workers Can Choose Among Three Long-Term Care Plans During Early Enrollment

Federal workers who enroll in the government's new long-term care benefit may choose between three prepackaged plans or customize their coverage, the Office of Personnel Management said March 25, as an early-enrollment period for the program began, the Washington Post reports. About 20 million people, including federal employees, military personnel and retirees, are eligible for coverage of nursing home care, assisted living, adult day care and other long-term care options. During the early-enrollment period, which will run until May 15, people may choose from three plans, called "A," "B" and "C". Plan A provides benefits of $100 per day for three years, B provides $150 a day for three years and C provides $150 a day for five years. But individuals may also choose to tailor coverage to meet their needs, selecting a daily benefit of between $50 and $300 in increments of $25. Monthly premiums, which vary depending on the benefit package and the enrollee's age, range from $8.40 to $675.60 a month. Enrollees can also opt for an "automatic compound inflation option," which increases benefits by 5% each year without increasing the premium. Without this option, premiums will increase with medical cost inflation. Selecting this option, however, initially leads to more expensive premiums, and enrollees may instead choose a "future purchase option" that allows them to add inflation protection every other year, the Post reports.

Eligibility
To begin receiving benefits under the plans, an enrollee must become unable to perform two of six "activities of daily living," such as eating, dressing or using the bathroom. Benefits will also be paid if an enrollee has a "severe cognitive impairment." Enrollees must wait 90 days before payments begin; the wait may be shortened to 30 days for a higher monthly premium. Once employees begin to draw benefits, they no longer pay premiums. When the benefit's open enrollment period begins in July, additional plans -- including a lifetime benefit -- will be offered, and early enrollees who want to switch options may do so at that time, officials said (Barr, Washington Post, 3/26).