LTC Bullet: Federal LTC Insurance Program Moves Forward
Wednesday December 19, 2001
The following press release appears on the website of the U.S. Office of Personnel Management (http://www.opm.gov/insure/ltc):
OPM Selects Metropolitan Life and John Hancock To Provide Long Term Care Insurance for the "Federal Family"
by Laura Lawrence
LTC Staff Writer
WASHINGTON, DC, Dec. 18 -- The U.S. Office of Personnel Management today announced that Metropolitan Life Insurance Company and John Hancock Life Insurance Company have been selected as the insurers for the Federal Long Term Care Insurance Program.
A number of factors influenced OPM's selection of Metropolitan Life and John Hancock. Together, they have the resources and experience to efficiently provide this insurance protection. Separately, each has name recognition with the public that inspires trust.
Metropolitan Life and John Hancock have formed Long Term Care Partners, LLC, a jointly owned entity devoted exclusively to operating the Federal Long Term Care Insurance Program.
Metropolitan Life and John Hancock were selected after a rigorous competitive process that involved actuaries and long term care experts from the Departments of Defense, Treasury, Health and Human Services, as well as the Pension Benefit Guaranty Corporation.
The complete premium schedules and benefit options for the program will be announced after John Hancock and Metropolitan Life conduct final market research with members of the groups eligible to enroll. Under terms of the contract, Metropolitan Life and John Hancock will conduct an extensive educational campaign to assure that the eligible populations are in a position to make informed decisions about long term care insurance.
An early-enrollment opportunity for the program is scheduled for early 2002
due to significant interest and comments from individuals who are familiar with
long term care insurance coverage.
OPM expects that most applicants will benefit from the extensive education and marketing campaign, which will begin in February 2002 and culminate in an open season registration that will be held sometime in late summer/early fall.
Annuitants will receive information at their correspondence addresses and employees will receive information at their worksites. The Metropolitan Life/John Hancock team will present several thousand work site and offsite meetings across the country to introduce the new program. The team will produce satellite broadcasts, informative booklets, newsletters, pamphlets, interactive web sites, and more to spread the word about this exciting and important new insurance program.