Van Hollen Calls for Congressional Hearing on Drastic Insurance Premium Hikes for Some Federal Employees

Today Maryland Congressman Chris Van Hollen wrote a letter to the House Oversight and Government Reform Committee requesting a hearing on drastic premium hikes for the Federal Long Term Care Insurance Program (FLTCIP) after a seven-year contract to oversee the program was awarded to the only bidder. A total of 264,000 federal employees will face an average premium spike of 83 percent per month, with some seeing up to a 124 percent increase.

“I have heard from numerous federal employees who purchased FLTCIP based on misleading predictions. They will face unacceptable financial hardship due to this outrageous and unforeseen rate increase,” Congressman Van Hollen wrote. “As this large premium spike comes as a surprise and a significant financial burden for thousands of federal employees, I respectfully request that the Committee on Oversight and Government Reform, perhaps the Subcommittee on Government Operations, hold an urgent investigative hearing on the structure of the FLTCIP and this specific contract renewal before the end of the Enrollee Decision Period.”

The full text of the letter to the Chairmen and Ranking Members of the Oversight and Government Reform Committee and Subcommittee on Government Operations is below:

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

On July 15, 2016 the Office of Personnel Management (OPM) announced that it had awarded a new seven-year contract to John Hancock Life and Health Insurance Company (John Hancock), the sole bidder, for the Federal Long Term Care Insurance Program (FLTCIP). I am writing to express my deep concern regarding the unexpected and drastic premium rate increases that will take effect on November 1, 2016 under the contract renewal.

I have heard from numerous federal employees who purchased FLTCIP based on misleading predictions. They will face unacceptable financial hardship due to this outrageous and unforeseen rate increase. A total of 264,000 federal employees will face an average premium spike of 83 percent per month – some up to 126 percent. Enrollees have been given only a limited Enrollee Decision Period of July 18 through September 30, 2016 to make the untenable decision to pay the increased premium, reduce their coverage, or drop the coverage that many have had for years.

As this large premium spike comes as a surprise and a significant financial burden for thousands of federal employees, I respectfully request that the Committee on Oversight and Government Reform, perhaps the Subcommittee on Government Operations, hold an urgent investigative hearing on the structure of the FLTCIP and this specific contract renewal before the end of the Enrollee Decision Period.

Sincerely,

Chris Van Hollen
Member of Congress