OPM Announces Third FLTCIP Contract Award: LTC Partners to Continue as Administrator
Portsmouth, NH: The U.S. Office of Personnel Management (OPM), the chief human resources agency of the federal government, has awarded a new, seven-year contract to John Hancock Life & Health Insurance Company to continue to provide coverage for the Federal Long Term Care Insurance Program (FLTCIP). LTC Partners (LTCP), a wholly owned subsidiary of John Hancock, will continue to administer the program. This is the third contract term for the program, and it will run from May 1, 2016, through April 30, 2023.
The Federal Long Term Care Insurance Program (FLTCIP) offers federally sponsored and regulated long term care insurance to eligible Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, certain other eligible groups, and their qualified relatives. It was created by an Act of Congress called the Long-Term Care Security Act of 2000 (Public Law 106-265).
After the Act's passage, OPM held a competitive bidding process and in December 2001 selected a consortium formed by John Hancock and MetLife to offer insurance under the FLTCIP for the first seven-year contract term. The carriers then formed Long Term Care Partners, LLC, a company dedicated to administering the FLTCIP. In October 2009, the second seven-year contract term was awarded to John Hancock, making them the sole insurer of the FLTCIP, and at that time Long Term Care Partners, LLC, became a wholly owned subsidiary of John Hancock.
"We are very happy with OPM's decision and to be able to begin the next phase of this landmark program," said Paul Forte, CEO of LTC Partners. "The FLTCIP has made a difference in the lives of thousands of federal employees and annuitants. The program serves as a national model for what a large-scale group program can achieve. It is not only a successful instance of how a complex benefit program can be administered, but it is also a national model for how private long term care insurance can be delivered on a large scale with both efficiency and satisfaction. As more and more boomers enter retirement, the significance of what we have accomplished will be manifest."
The FLTCIP provides industry-leading protection from the potentially high costs of long term care, including unusually generous home and community-based care benefits; flexible options that allow enrollees to tailor coverage to meet their needs; access to experienced program consultants who can help guide decision-making, compare plans, personalize rate quotes, and assist in completing an application for coverage; and a robust care coordination and informal care benefits program designed to allow enrollees to stay at home longer or choose care in the setting of their choice.
LTC Partners provides a full range of administrative services for the FLTCIP, including marketing, underwriting, enrollment, premium collection and reconciliation, care coordination, and claims, among other functions.
The FLTCIP is the largest employer-sponsored long term care insurance program in the country, with more than 274,000 enrollees.
About LTC Partners
LTC Partners® (Long Term Care Partners, LLC®, or LTCP®), a diversified third-party administrator of large-scale insurance and benefits programs, was founded in 2002. LTC Partners administers both the Federal Long Term Care Insurance Program and BENEFEDS under the oversight of the U.S. Office of Personnel Management (OPM). The company is located at Pease International Tradeport in Portsmouth, NH. LTC Partners is a wholly owned subsidiary of John Hancock Life & Health Insurance Company.