November 16, 2009 - 1:37pm
Already under fire for premium hikes in the federal Long Term Care insurance program, the Office of Personnel Management has asked Long Term Care Partners ("a wholly owned subsidiary of John Hancock Life & Health Insurance Co.") to correct information sent out to approximately 71,600 policy holders.
In a news release posted on Friday, OPM said the Partners had mailed information containing "errors in calculating potential premiums."
Responding to OPM's request, Long Term Care Partners reports they will begin mailing notices to the approximately 71,600 affected individuals, alerting them to the errors about the premiums shown in the "Benefit Amount" section of their election letters. The company also reports that in December, they will mail personalized letters providing accurate information to affected enrollees so that they can make an informed decision using correct information.
Due to the error, said OPM, "Long Term Care Partners is extending the decision period for those who received an erroneous letter to March 15, 2010, giving enrollees sufficient time to review their options." (Emphasis our own.)
The Federal Long Term Care Partners have posted a notice on their website saying the notices were mailed out on Friday, "and will also send them each a corrected personalized options form in the coming weeks."
The error comes on the heels of calls on the Hill for hearings to be held to look into the LTC premium hikes. Rep. Gerry Connolly (D-Va.) told FederalNewsRadio, "I really feel that it's only fair to those who, in good faith, signed up for this program seven years ago that there be a full hearing of what went wrong and why, because otherwise I think, frankly, those federal workers could rightfully accuse the federal government of bait-and-switch -- of operating in bad faith."
For more on that story, click here, and for more Pay & Benefits news, check out Mike Causey's Federal Report and sign up for Mike's daily e-mail.
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