OPM picks long-term care contractor

The Office of Personnel Management on Tuesday announced the contractor that will run the government's long-term care insurance program for federal workers, military personnel and retirees. Metropolitan Life and John Hancock insurance companies teamed up to win the contract, which will provide discounted long-term care insurance to up to 20 million federal employees and retirees, military personnel and retirees and their families. While OPM has estimated that discounts on the insurance would be 15 percent to 20 percent below premiums available in the commercial market, the agency on Tuesday said that premiums would be "below those generally available in the private market" and would be announced by February. The contractors' joint venture, known as Long Term Care Partners LLC, will begin marketing and offering long-term care coverage by October. An early enrollment period will likely take place in February, when people who know they want the coverage immediately can sign up. Long-term care insurance covers services in nursing homes and chronic or extended illnesses that are not covered by standard health insurance. While the government pays about 72 percent of employees' normal health insurance premiums, the government will not subsidize long-term care premiums. OPM says that the program is likely to become the largest employer-sponsored long-term care insurance program in the nation. A 2001 Society for Human Resource Management survey found that 46 percent of employers offered long-term care insurance as a benefit, up by 11 percent from 2000. Congress approved the creation of a federal long-term care insurance program in part to help the government compete with private firms for employees.