Norton Says Unprecedented Premium Increases to Federal Long Term Care Program Demand Congressional Hearing

WASHINGTON, D.C.—The office of Congresswoman Eleanor Holmes Norton (D-DC) today released her letter to the chairs and ranking members of the Oversight and Government Reform Committee (OGR) and its Subcommittee on Government Operations requesting a hearing on the Office of Personnel Management’s (OPM) announcement of unprecedented rate increases for federal employees and retirees enrolled in the Federal Long Term Care Insurance Program (FLTCIP). In her letter, Norton noted stagnant federal employee pay and said that District of Columbia residents and the almost 274,000 federal employees enrolled in FLTCIP were “shocked at these sudden, rocket-high rate increases.”

In her letter, Norton wrote “OPM has already acknowledged that these rate increases will affect most of FLTCIP’s 274,000 enrollees and will result in a reduction of benefits for enrollees who switch to a more affordable coverage option. Moreover, enrollees have only until September 30, 2016, to make a decision about their FLTCIP coverage. Considering that the rate increases: a) are unexpected and exorbitant and b) will impact hundreds of thousands of federal employees and retirees…it seems clear that a hearing would serve an important purpose.”

Norton’s full letter is below.

The Honorable Jason Chaffetz The Honorable Elijah Cummings
Chairman Ranking Member
House Oversight and Government House Oversight and Government
Reform Committee Reform Committee
2157 Rayburn House Office Building 2471 Rayburn House Office Building
Washington, DC 20515 Washington, DC 20515

The Honorable Mark Meadows The Honorable Gerry Connolly
Chairman Ranking Member
Subcommittee on Government Operations Subcommittee on Government Operations
2157 Rayburn House Office Building 2471 Rayburn House Office Building
Washington, DC 20515 Washington, DC 20515

Dear Chairman Chaffetz, Chairman Meadows, Ranking Member Cummings, and Ranking Member Connolly:

I write to you in regards to the Office of Personnel Management’s (OPM) announcement on July 15, 2016, that it had awarded a seven-year contract to John Hancock Life and Health Insurance Company to provide benefits for the Federal Long Term Care Insurance Program (FLTCIP). Along with this new contract came the announcement of unprecedented rate increases for federal employees and retirees who are enrolled in the program. We have already heard from numerous federal employees, including District of Columbia residents, who are shocked at these sudden, rocket-high rate increases and are concerned about what this means for their future care and benefits. As you can imagine, many employees fear they will not be able to afford the rate increase, and thus the benefit, at all.

OPM has already acknowledged that these rate increases will affect most of FLTCIP’s 274,000 enrollees and will result in a reduction of benefits for enrollees who switch to a more affordable coverage option. Moreover, enrollees have only until September 30, 2016, to make a decision about their FLTCIP coverage. Considering that the rate increases: a) are unexpected and exorbitant and b) will impact hundreds of thousands of federal employees and retirees, I respectfully urge the Oversight and Government Reform Committee, or the Subcommittee on Government Operations, hold a hearing on this issue. It seems clear that a hearing would serve an important purpose, particularly given the limited notice provided to enrollees. Enrollees will also want assurances about the predictability of coverage rates in the future.

Federal employees who are enrolled in FLTCIP, many of whom live in my district, are hard-working and dedicated, but have received very little in salary increases over the past several years. Any increase in FLTCIP premiums will be a serious financial hardship for many enrollees. A hearing would provide a much-needed opportunity for our Committee to get answers for the 274,000 federal employees enrolled in this program nationwide. Thank you for considering my request.

Sincerely,

Eleanor Holmes Norton