Discounted long-term care insurance rates for 9 million federal employees, military personnel and civilian and military retirees and their families are one step closer to becoming a reality. On Wednesday, the Office of Personnel Management solicited companies willing to offer long-term care insurance to federal workers at reduced prices. Long-term care insurance covers the costs of nursing care, home health care and other services for people who require constant medical attention. The says OPM will pick the company that offers the best value, not just the lowest cost, to participants. OPM will also be pushing to allow as many people to participate as possible. However, OPM and the winning company may limit participation, excluding people with certain pre-existing conditions, for example, to keep premiums lower. Long-term care can be very expensive; the cost of a nursing home averages $46,000 per year. Regular health insurance tends not to cover long-term care, and long-term care insurance is pricey. The average base premium for 40-year-olds in 1999 was $209 a year, according to estimates from the Health Insurance Association of America. The average premium climbs as high as $3,803 a year for 79-year-olds. The Office of Personnel Management has estimated that the government could negotiate 15 to 20 percent discounts for federal employees and retirees. One possibility is that a consortium of health insurance companies will join together to form a team to bid for the long-term care program. OPM plans to award the contract and open the program to participants by next year. Rep. Jim Traficant, D-Ohio, this week introduced a bill that would make Flag Day a legal public holiday. Flag Day is on June 14. The bill number is H.R. 2242. The Defense Finance and Accounting Service (DFAS) has awarded a contract to ACS Government Services, of Rockville, Md., to provide pay services to 2.5 million Defense Department retirees and annuitants. DFAS awarded the contract to ACS after it triumphed in a public-private competition. The contract is expected to save Defense $36 million.
Long-Term CaresolicitationFlag DayPay DaysGI Bill Improvements
The House passed legislation Tuesday, H.R. 1291, that would increase education and training benefits under the Montgomery GI Bill by 70 percent, the largest increase ever. Under the bill, veterans with three years of service would be eligible for up to $39,600 in benefits, up from $23,400 at present. The maximum benefits under the bill would rise over the next three years from the current $650 a month to $800 in fiscal 2002, $950 in fiscal 2003, and $1100 in fiscal 2004. The Bush administration on Tuesday signaled its support for the measure, saying "Improvements to the [GI Bill] program like these would make it easier for veterans to afford a higher education and would serve as important recruiting tools for the military services."
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