The Federal Long Term Care Insurance Program (FLTCIP) Patrick N. McCafferty Account Manager & Media Relations Coordinator Long Term Care Partners, LLC

FLTCIP Report Card  More than 273,000 current enrollees  More than 10,000 enrollees have made claims to date  More than $10 million per month are paid in claims, and this number is growing  Claim approval rate: 96% 3. These statistics are based on current LTC Partners data (accessed April 2015).

The FLTCIP Offers Comprehensive Coverage Decide where your care will take place:  Home  Adult day care center  Assisted living facility  Nursing home  Hospice facility

The FLTCIP Offers Comprehensive Coverage Identify your caregivers:  Formal caregivers  Home health and care agencies, visiting nurse associations, and hospice agencies  Informal caregivers  Friend, relative, or private caregiver, as long as that person did not live in your home at the time you became eligible for benefits

Designing Your FLTCIP Coverage It’s easy! 1.Choose a daily benefit amount (DBA). 2.Choose a benefit period. 3.Choose your inflation protection.

Decision #1: Daily Benefit Amount  Choose between $100 and $450 per day  $50 increments  Covered expenses are paid up to 100% of DBA for care, regardless of domestic location*  Consider the cost where you live  Launch the Online Consultant Tool at * International benefits are reimbursed at a rate of 80%. Other restrictions may apply.

Cost of Care Calculator

Decision #2: Benefit Period  Choose a benefit period  2 years  3 years  5 years  Unlimited  This number will be multiplied by 365 when you calculate your overall benefit due to daily reimbursement of benefits

How It Works: Maximum Lifetime Benefit Daily benefit amount* Benefit period (× 365 days) Maximum lifetime benefit *Inflation protection works to help keep this number relevant over the years. ×

How It Works: Maximum Lifetime Benefit $150* (DBA) 1,095 days (3-year benefit period) $164,250 (MLB) *Inflation protection works to help keep this number relevant through the years. ×

Decision #3: Inflation Protection Keep pace with the rising costs of care.  Two approaches  Automatic compound inflation option (ACIO)  Future purchase option (FPO)

Automatic Compound Inflation Option  Choose: 4% or 5% ACIO  Your benefits automatically increase 4% or 5%, compounded annually

Future Purchase Option FPO is the most cost-effective way to begin planning.  There is no built-in inflation protection  You have the ability to increase your benefits every two years based on current inflation rates  Your premium will increase for each inflation increase taken. The additional premium for each increase will be based on your age and the premium rates in effect at the time the increase takes effect

FLTCIP Built-in Features  Waiting period  90 calendar days  Stay-at-home benefit  Available during waiting period  Benefit is equal to 30 times your DBA  Benefits paid will not reduce your MLB

FLTCIP Built-in Features  Expert care coordination is provided by registered nurses to  Help find high-quality care providers in your area  Arrange for discounted services  Support local and long-distance caregiving  Assist with changing your plan of care as needs change Note: Certain care coordination services are available to qualified relatives, even if they are not enrolled.

Who Is Eligible to Apply?  Federal and U.S. Postal (USPS) employees eligible for the FEHB Program  Federal and USPS annuitants  Active and retired members of the uniformed services  Qualified relatives  Current spouses and domestic partners of eligible employees and annuitants  Parents, parents-in-law, and stepparents of living eligible employees  Adult children of living eligible employees and annuitants

Plan for Your Future  Premiums are based on your age at time of application  The FLTCIP is medically underwritten  Each participant must apply individually  Coverage is fully portable  Qualified relatives may apply even if you don’t

Security for Your Future The FLTCIP is  The largest employer-sponsored long term care insurance program in the country  Underwritten by John Hancock Life & Health Insurance Company  Sponsored by OPM  FLTCIP premiums are held in an experience fund, a fund separate from John Hancock’s other assets  High service standards

Are My Premiums Guaranteed?  FLTCIP coverage is guaranteed renewable, but premiums are not guaranteed  Your premium will not change because of your age or health  Premiums may only increase if you are in an enrollee group whose premium is determined to be inadequate  The U.S. Office of Personnel Management (OPM) must approve an increase in premium  Your premium may also increase if you voluntarily elect to increase your benefits

Next Steps  Get in touch!  Program consultants are available:  Weekdays, from 8 a.m. to 6 p.m. (ET)  LTC-FEDS ( ) TTY  Visit for more information:  Webinars  Planning tools  Program Overview brochure

Thank you LTC-FEDS ( ) TTY The Federal Long Term Care Insurance Program is sponsored by the U.S. Office of Personnel Management, offered by John Hancock Life & Health Insurance Company, and administered by Long Term Care Partners, LLC.