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Old 10-13-2017, 06:08 PM
 
Location: minnesota
6,379 posts, read 2,137,336 times
Reputation: 2187

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Hi. I looked through the other active thread and didn't see my questions addressed.

Background:
Married 49F 53M
Plan available:

https://www.ltcfeds.com/ltcWeb/do/as...token=s5r20p0x

If I'm understanding FPO it means your premiums increase based on the CPI. Is that correct? The plans with 4/5 ACI are more than I want to commit right now. I know that means I will end up paying less when I'm older but I have no problem paying extra as inflation goes up. Is there any downfall to this?

I would really like to get it within the next few years. I'm thinking I will keep my eye out for the next open enrollment.

Also, I can't find a straight answer to this question. While people are employed their employer sponsored health insurance is pretax. If this is done through work will those premiums be pretax as well? Here's the info MN has on it. It looks like I'll get $100 per person. (does FPO count as inflation protection to qualify). We don't have many OFP medical expenses and we barely have enough deductions to itemize now.

Edit: https://mn.gov/commerce/consumers/yo...troduction.jsp

Are these good rates (way way way lower because of the FPO instead of inflation adjusted)

49 $250 day 90 wait unlimited $124 month

53 $250 90 wait unlimited $160 month

Last edited by L8Gr8Apost8; 10-13-2017 at 06:11 PM.. Reason: state link
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Old 10-13-2017, 07:17 PM
 
Location: minnesota
6,379 posts, read 2,137,336 times
Reputation: 2187
I guess it's No to that pretax questions. Too bad it might encourage younger people to buy it.

https://www.ltcfeds.com/help/faq/taxes.html
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Old 10-14-2017, 01:08 PM
 
3,100 posts, read 829,155 times
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I'm a former FED but never looked too closely at LTCFED or specific LTCi policies. A couple of quick comments though:

Open enrollments (simplified underwriting) were offered in 2002 and 2011. Premium rates for current policy holders skyrocketed last year, some to triple digits with the average maybe around 85 percent? This suggests another open enrollment period may never happen for current employees. That it's offered in the first 60 days to new employees helps pull in the young and healthy.

Plus, if you can qualify under full underwriting why wait? Time is not your friend here.

Locking in a policy using FPO now could be a good approach, assuming that is if you can make future adjustments without underwriting. (That question shows how little I know about LTCi.)

When I retired, a counselor running one of the retirement programs spewed out some nonsense that there could never be a premium increase in the Federal program because it would require approval by each of the 50 states, which practically would never happen.Wrong, wrong, wrong.

Another question would be HOW the program operates. Doesn't OPM periodically put out bids for time-limited contracts (maybe around 7 years or so). And wasn't John Hancock's contract up last year? John Hancock's now pulled out of LTCi but obviously prior contracts will be honored. They may continue to show interest over time in the Federal contract. No idea, but I'd ask if there was any connection between the skyrocketing premiums and contract renegotiations.

LTCFED policies are not eligible for State Partnership agreements, across-the-board I assume. A serious drawback.

Maybe someone will chime in who actually has a LTCFED policy. Probably some threads over on Federal Soup.

Good luck.
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Old 10-14-2017, 01:18 PM
 
Location: Portland, Oregon
10,022 posts, read 16,696,898 times
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I suspect that adverse selection is an issue for those insurers as many who signed up when the program was first offered anticipated that they would need care because of known health conditions or they were older. Remember that retirees could sign up.

One advantage of LTCFED is that you have OPM at your elbow should disputes about eligibility arise.
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Old 10-14-2017, 02:09 PM
 
29,820 posts, read 34,912,438 times
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Quote:
Originally Posted by Nell Plotts View Post
I suspect that adverse selection is an issue for those insurers as many who signed up when the program was first offered anticipated that they would need care because of known health conditions or they were older. Remember that retirees could sign up.

One advantage of LTCFED is that you have OPM at your elbow should disputes about eligibility arise.
That is a major Bada Bing. Ours is via NEA and they are now using several companies including the one we are with and yes they have exerted their collective power to prevent premium increases.
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Old 10-14-2017, 03:46 PM
 
Location: minnesota
6,379 posts, read 2,137,336 times
Reputation: 2187
Quote:
Originally Posted by EveryLady View Post
I'm a former FED but never looked too closely at LTCFED or specific LTCi policies. A couple of quick comments though:

Open enrollments (simplified underwriting) were offered in 2002 and 2011. Premium rates for current policy holders skyrocketed last year, some to triple digits with the average maybe around 85 percent? This suggests another open enrollment period may never happen for current employees. That it's offered in the first 60 days to new employees helps pull in the young and healthy.

Plus, if you can qualify under full underwriting why wait? Time is not your friend here.
Good advise, you're right. It could take 10 years for another open enrollment. I'll have to check what full underwriting would entail. We could both stand to lose some weight but that's about it.

Quote:
Locking in a policy using FPO now could be a good approach, assuming that is if you can make future adjustments without underwriting. (That question shows how little I know about LTCi.)

When I retired, a counselor running one of the retirement programs spewed out some nonsense that there could never be a premium increase in the Federal program because it would require approval by each of the 50 states, which practically would never happen.Wrong, wrong, wrong.
I can deny up to 3 increases without having to trigger any new underwriting. I can't see that I would deny an increase because the benefit goes up too. I'm thinking of getting the $200 a day plan instead of the $250 so I need to stay with the increases.

Without the FPO I can't really afford a decent premium. The difference between the premiums is $124 month or $427 for a 5ACI. I really want the unlimited so I don't want to save money going to a shorter payout. So I guess that pretty much makes my decision for me.

Quote:
Another question would be HOW the program operates. Doesn't OPM periodically put out bids for time-limited contracts (maybe around 7 years or so). And wasn't John Hancock's contract up last year? John Hancock's now pulled out of LTCi but obviously prior contracts will be honored. They may continue to show interest over time in the Federal contract. No idea, but I'd ask if there was any connection between the skyrocketing premiums and contract renegotiations.

LTCFED policies are not eligible for State Partnership agreements, across-the-board I assume. A serious drawback.

Maybe someone will chime in who actually has a LTCFED policy. Probably some threads over on Federal Soup.

Good luck.
It looked to me like John Hancock got the award again. From what I understand it puts out new bids every 7 years. The sites down so I can't double check.

What's a state partnership agreement? Does that just mean I'd lose the $100 a year tax credit from MN?

Thanks for responding.
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Old 10-14-2017, 03:54 PM
 
216 posts, read 114,724 times
Reputation: 168
Partnership plans offer advantages regarding Medicaid eligibility asset limits. For example, if you bought a partnership qualified ltc insurance policy with a pool of benefits of say 200,000. If the insured uses all 200,000 and applies for medicaid coverage, 200,000 of assets are exempt from spend down.
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Old 10-14-2017, 04:19 PM
 
Location: minnesota
6,379 posts, read 2,137,336 times
Reputation: 2187
Quote:
Originally Posted by Pintail07 View Post
Partnership plans offer advantages regarding Medicaid eligibility asset limits. For example, if you bought a partnership qualified ltc insurance policy with a pool of benefits of say 200,000. If the insured uses all 200,000 and applies for medicaid coverage, 200,000 of assets are exempt from spend down.
Thank you for explaining that. I'm OK with that. I might consider going back up to the $250 now though. Mostly I'm concerned with having options for care. The plan allows family members or other non professionals to provide care and that might allow me to stay out of the home longer. Also I could keep the old man out of the home if I had some help with him. It's cheaper for them too. The only way I would come up short is if I was in a facility. Regular pension and SS would make up most of the difference (I hope). At least I can feel comfortable enjoying spending our savings instead of feel like I need to save something for just in case. Whatever the kids get from me I want to watch them spend. The home can have the rest.
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Old 10-14-2017, 04:36 PM
 
216 posts, read 114,724 times
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Never underestimate the "cost" of using family members for prolonged care giving. They will pay the physical, emotional and perhaps financial cost if they have to drop their job. I provide part time care for my spouse, hard as everything.
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Old 10-14-2017, 04:47 PM
 
Location: minnesota
6,379 posts, read 2,137,336 times
Reputation: 2187
Quote:
Originally Posted by Pintail07 View Post
Never underestimate the "cost" of using family members for prolonged care giving. They will pay the physical, emotional and perhaps financial cost if they have to drop their job. I provide part time care for my spouse, hard as everything.
Yeah, at the very least it would allow them to farm out some help or me to pay someone else. Do you have help come in? Are there any programs out there that help with the cost or does the person have to pay for that out of pocket?
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