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Washington, D.C. -- Kay Coles James, Director of the U.S. Office of Personnel Management, today launched the Federal Long Term Care Insurance Program, under which approximately 20 million federal employees and members of the uniformed services, as well as retirees of both groups and certain family members, can apply for coverage.

"The ability to insure our futures and to honor our primary responsibilities is one of the nicest gifts we can make to our children, our spouses, other family members and, quite frankly, to ourselves," said James. "Because I believe so strongly in long-term care insurance and the peace of mind it can bring, I have purchased a policy through the program we have unveiled today." Through her enrollment, James became the first charter member of the LTC program.

OPM is the sponsor of the Federal Long Term Care Insurance Program (FLTCIP). The program's early-enrollment period coincides with a nationwide education campaign that will be conducted by Long Term Care Partners, LLC. Long Term Care Partners is a joint venture of MetLife and John Hancock, the program's insurers, and will be devoted exclusively to this insurance program.

The initial component of the launch, which includes an early-enrollment period that begins today and runs through May 15, also includes an education campaign that will allow individuals to become better informed about long-term care insurance.

The early-enrollment period also marks the release of premiums for the long-termcare insurance product (see Early Enrollment Kits for tables that list monthly premiums). During the early enrollment, pre-packaged policies can be purchased for three- or five-year periods, with daily benefits of $100 or $150. For individuals wishing greater flexibility, daily benefits ranging from $50 to $300 (in $25 increments) can be purchased. (Additional plan options, including an unlimited benefit, will be available during the regular open enrollment, which runs from July 1 through December 31, 2002.)

For individuals ages 18 - 30, premiums are $8.40 per month for a policy that offers a three-year, daily benefit of $100 and a 90 day waiting period or $32 depending on the type of inflation protection chosen. After age 30, premiums will vary based on age, amount of coverage, length of coverage, and other factors.

The FLTCIP offers two methods of inflation protection. The Automatic Compound Inflation Option increases benefit levels by 5 percent each year, without a corresponding rise in premiums. Under the Future Purchase Option, policyholders receive benefit increases based on the Medical-Consumer Price Index every two years. An additional premium will be charged and based on the individual's age at the time of the increase. Enrollees can decline increases under this option.

"We will hold up the Federal Long Term Care Insurance Program as a model program for employers across the country who may want to make this type of insurance product available to their own employees," said James.

The early-enrollment period is most appropriate for individuals who are better informed about long-term care insurance. OPM urges those who are not as familiar with this insurance product to use the education period to decide which, if any, long-term care insurance best fits their needs.

"The Federal Long Term Care Insurance Program is an option that can protect us emotionally, financially and socially at a time when family members face unimagined challenges," said James. "With access to long-term care insurance, we can act responsibly by planning well in advance for future care costs, giving us more time to focus our love and attention on what's really important -- family."

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