Ever since the Office of Personnel Management (OPM) announced a major increase in long-term care insurance premiums for currents policyholders in the federal program, I have had quite a few of these folks requesting quotes from other major carriers.

The federal program is available to all federal employees and the military.

What many did not realize is that the bid for that contract comes up every seven years and when it does all current policyholders are subject to facing a rate increase. The current increase will be as much as 25% for some.

Here is an excerpt from an article about how some feel cheated by this unexpected premium increase:

“Like many others, when the Joys signed up for the Federal Long Term Care Insurance Program in 2003, they had the clear impression their premiums would not rise. But recently, the Office of Personnel Management announced fees for about 150,000 members of the plan will jump between 5 and 25 percent.

The Joys, who are being hit with the full bump, are livid.

“That just wasn’t the deal we signed,” Chester said by phone as they drove across Tampa Bay to visit Donna’s parents. “I think we’re being grossly cheated.”

You can read the rest of the article here.