The Federal Long Term Care Insurance Program

• Welcome and Background
• Early Enrollment
• About Long Term Care Partners
• Program Overview and Open Season

Welcome!

And

THANK YOU!!

Background

• We wanted the FLTCIP to help members of the Federal Family prepare for the possibility that they might need long term care at some point in their lives.

• Congress agreed!

• Legislation Introduced
• January 6, 1999
• Long-Term Care Security Act Signed
• September 19, 2000
• Request for Proposals
• June 20, 2001
• Contract Award
• December 18, 2001

To deliver:

• Flexible, comprehensive coverage that is easy to understand
• Benefits not always available in the private sector
• Affordable premiums at group rates
• Strong customer service

• March 25 through May 15, 2002
• For those who did their homework
• Charter members:
• OPM Director Kay Coles James
• Former OPM Director Janice Lachance
• ME!
• Limited benefits and payment options
• Earliest effective date -- May 1, 2002

• Subscriptions to bulletin series, Get Smart About Your Future

• Applications received

• Calls to toll-free number

• Web site traffic

• Help us help your employees
• Monthly posters, pamphlets, emails
• Facilitate educational meetings
• Direct everyone to the toll-free number and web site
• MORE DETAILS --
• Stay tuned for Jodi!

• OPM on Your Side
• Laura Lawrence and John Cutler, Project Leaders
• Holly Schumann and Terry Schleicher, Program Analysts
• Long Term Care Partners
• John Hancock and MetLife joint venture
• Paul Forte, CEO

Long Term Care Insurance Market

• First policies in 1970s oriented to medical necessity, not functional impairment
• Great strides made in 1980s, 1990s
• More than 75 insurers now selling LTC policies nationally
• Some 5 million persons covered by end of 2001
• Some $6 billion in force at the end of 2001
• New sales annualized premium hits $1 billion in 2001

Impact of the Federal Program on the LTC Insurance Market

• Largest educational campaign on LTC/LTCI to date
• Example to other employers
• New standard of excellence for LTCI
• New incentives for long term care service delivery systems

Why did John Hancock and MetLife decide to work together?

• Leaders in private LTCI product development and marketing
• Track records in large case group installation
• Commitment to sound underwriting and care management
• Excellent financial ratings
• Widely recognized and trusted brand names

Why did John Hancock and MetLife decide to form Long Term Care Partners?

• Focus and direct resources
• Bring together all expertise under one roof
• Reduce corporate overhead and make it easier to track expenses
• Customize administration and technology to meet special Federal requirements
• Offer single point of contact to OPM and Federal Family

About Long Term Care Partners

• New joint venture company formed by John Hancock and MetLife
• Site fully operational June 3, 2002
• Staffed by persons with professional experience in all aspects of LTC insurance administration
• Supported by state-of-the-art technology
• Headquarters at Pease International Tradeport in Portsmouth, New Hampshire

Long Term Care Partners
Key Functions

• Account Management
• Marketing and Market Research
• Enrollment Support
• Underwriting Policy
• Vendor Management
• Care Coordination and Information Counseling
• Claims Administration

Long Term Care Partners
Key Functions Continued

• Administration
• Billing and Collection
• Benefit Booklet Issuance
• Ongoing Customer Service
• CARE System and Information Technology (Web site)
• Reports
• Financial Management and Reporting

How will Long Term Care Partners Benefit the Federal Family?

• Educate Federal Family members about LTC and LTC insurance
• Provide best of class service organization geared to Federal Family needs
• Offer best value now and in the future

The Federal Long Term Care Insurance Program

Topics of Discussion

• Plan Features/Benefit Options
• Premiums
• Who is Eligible to Apply
• Underwriting
• Billing Options

Topics of Discussion

• Open Season Marketing/Educational Campaign
• Open Season Rollout Strategy
• Timeline
• Why the Federal Program?

• DBA x Benefit Period (in days) = Maximum Lifetime Benefit

Example:

$100 DBA x 1,095 days (3 years x 365 days) = $109,500

How to Qualify for Benefits

• You must need help to perform at least 2 activities of daily living for an expected period of at least 90 days

Bathing Dressing

Toileting Eating

Continence

Transferring (yourself from bed to chair)

or

• You must have a Severe Cognitive Impairment

• 100% enrollee paid - no Government contribution
• Premiums are based on your age when you buy- for Open Season it is your age on July 1, 2002
• Premiums do not increase simply because you get older

• Rates are per person - there are no spouse discounts
• OPM required the insurers to use the new NAIC model guidelines designed to assure premium stability

Payroll/Pension/Annuity Deduction Overview

• LTC Partners has worked with agency payroll offices to develop process
• Available for employees, annuitants, members/retired members of the uniformed services, and their qualified relatives
• Payroll/Annuity Instruction Guide developed to assist applicants with the correct payroll identifier information

Payroll/Pension/Annuity Deduction Overview

• Authorization for deduction will be given directly to LTC Partners on application
• LTC Partners will send file to agencies indicating who and amount to withhold
• Deduction will begin the first pay period on or after effective date of coverage

Payroll/Pension/Annuity Deduction Overview

• All changes/adjustments/corrections will be initiated by LTC Partners, not agency
• Earliest effective date for payroll/annuity deduction is October 1, 2002

Switching Coverage/Billing Options During Open Season

• Individuals who enrolled during Early Enrollment may change their coverage during Open Season:
• Need to complete a new application
• Premiums will be based on their original issue age during Early Enrollment
• Switching coverage is not available to individuals who are certified as benefit eligible

Switching Coverage/Billing Options During Open Season

• Coverage changes include for example:
• Increasing the Daily Benefit Amount
• Moving from a Daily Benefit to a Weekly Benefit
• Increasing the Benefit Period from 5 years to Unlimited
• Billing changes can occur at any time. An enrollee must complete a Billing Change Form

Open Season Marketing/Educational Campaign

• Web site
• Call Center
• Bulletin #4 and #5 and supporting Collaterals
• Satellite Broadcast July 17th

Open Season
Marketing/Educational Campaign

• Offer for Information and Application Kit
• Information and Application Kit
• Educational Meetings and Educational Video
• Posters
• Webinars

Information and Application Kit

• Mailed to those who request it
• No bulk shipment of kits to agencies
• Components of the Kit :
• Letter from OPM Director Kay Coles James
• Question and Answer Brochure
• Personalized Plan Proposal with Premiums/Quote
• Inflation Protection Options Brochure

Information and Application Kit

• 2 Applications, Instructions and Reply Envelope
• Payroll/Annuity Deduction Instruction Guide
• Additional Information Envelope
• NAIC Shoppers Guide
• OPM Companion Guide and Letter
• Federal Program Outline of Coverage
• Privacy Notice

Open Season Rollout Strategy

• Rollout will be staggered beginning in July through early October
• Civilian and Postal will occur first followed by uniformed services
• Program will be rolled out geographically and by agency

Open Season Rollout Strategy

• Beginning week of June 24th Offer for Information and Application Kit will be distributed to approximately 500,000 eligibles on a weekly basis
• All Bulletin subscribers will receive their offers in their 4th and 5th issues of the Bulletin

Open Season Rollout Strategy

• Each distribution will consist of a group of employees/members of the uniformed services and a group of annuitant/retired members of uniformed services
• Offers for the Information and Application Kit will have a respond by date of 10 days

Open Season Rollout Strategy

• Information and Application Kit will have a respond by date that reflects a 60 day period (from date of kit fulfillment)
• Program Educational meetings are being scheduled to occur during the 60 day window (July 15 - Mid-November)
• Registration process will be used for Educational meetings (effective July 1)
• Via phone or Web site

Open Season Rollout Strategy

• Program Educational Video will be sent to all Implementation Coordinators (effective mid-July)
• Program Educational Webinar will be available on the web site (effective July)
• All eligibles can request a kit at any time and can submit an application at any time during Open Season to obtain the July 1, 2002 bill age date

Timeline

June

• 2002 Federal Benefits Conference
• Fourth Bulletin issue of Get Smart About Your Future
• Materials supporting monthly theme How to Choose a Plan released to Implementation Coordinators
• Open Season Information and Application Kit Offer mailing begins

Timeline

July

• Open Season Begins July 1!
• Full Program web site launched
• Implementation Coordinators Training Session July 11
• Program Educational Meetings begin July 15th
• Materials supporting monthly theme The Federal LTC Insurance Program - Why Now? released to Implementations Coordinators

Timeline

July

• Third and Final Satellite Broadcast - July 17th
• Program Educational Meetings begin
• Information and Application Offer mailing continue
• Open Season Information and Application Kits mailed upon request

Timeline

August - December

• Open Season continues
• Program Educational Meetings continue
• Payroll/Pension/Annuity Deduction begins October

Key Contact Information

• Call Center: 1-800-LTC-FEDS( 1-800-582-3337) (TDD: 1-800-843-3557)

For Open Season: our Certified Long Term Care Insurance Consultants are available 8:00 am - 12:00 midnight Eastern Time 7 days a week

• Web sites:
• www.LTCFEDS.com
• www.opm.gov/insure/ltc

• Email addresses:
• info@ltcpartners.com
• ltc@opm.gov