fegli.net blog Posts Tagged ‘FEGLI’

FegliPLUS for Senior Federal Employees

Saturday, August 11th, 2018

FegliPLUS

 

For many years, Allfeds.com has offered instant, online comparisons between the optional Federal Employees Group Life Insurance, FEGLI Option “B”, and equal or better coverage from the top carriers in the industry. 

Our average 20 year premium savings has been over $100,000 …. one client actually saved $560,000!

We are now introducing FegliPLUS, an exciting comparison where you can not only lock in guaranteed level rates for 20 or 30 years and reduce your premium costs by 50-80%, you can also now add important protection to provide substantial lump sum payments for Critical Illness and Chronic Illness including…..

  • Heart attack
  • Stroke
  • Cancer
  • Parkinson’s  
  • ALS
  • Alzheimer’s
  • Multiple sclerosis
  • Paralysis
  • Dementia
  • Blindness

Examples:

Female age 55 in excellent health could get $500,000 20 year term, save $116,000 or 84% AND still have lump sum coverage for critical illness and chronic care for the next 20 years.

Female age 60 in only average health could get $500,000 20 year term, save almost $190,000 AND still have lump sum coverage for critical illness and chronic care until age 80!

 

Take a minute too see if you can benefit from this review

FegliPLUS Chart

 A 60 second review could save you $150,000 or more!

 

FegliPLUS Quote Request

What Does Long-Term Care Cost?

Thursday, June 11th, 2009

An important part of planning for long-term care is deciding how to pay for services. This is because long-term care is very expensive, and contrary to what many people believe, their Medicare coverage will not pay for most of the long-term care services they need. While some people may qualify for Medicaid — the major payer of long-term care services, most people won’t. There are other federal public programs, such as the Older Americans Act, or state funded programs, that pay some long-term care services, but like Medicaid they target those people with the most functional and financial need. Consequently, if you are one of the 70% of people over the age of 65 who will need long-term care services — there’s a very good chance you will have to pay for some or all of your long-term care services out of your personal income and resources. Paying for long-term care out of your personal income and resources can be challenging. Even if you have a modest need for assistance at home with personal care, say a visit from a home health aide 3 times a week, based on 2008 average costs, you would have to pay about $18,000 a year for those services. To make the best decisions about how to pay for long-term care you need to understand what services cost, what public programs you are eligible for and what they cover, what private financing options are available, and which ones work best for you.

What Does Long-Term Care Cost?

LTC includes a broad range of health and support services that people need as they age or if they are disabled. The majority of these services are personal care, or assistance with activities of daily living that many families are able to provide all, or some of, free. But, as care and support needs increase, paid care is usually needed to supplement family provided services and supports, provide respite to family caregivers, or to pay for more extensive services in a facility, such as a nursing home or assisted living, when individuals can no longer be cared for in their homes.

There are variations in costs based on the type and amount of care you need, the provider you use, and where you live. Home health and home care services, provided in two-to-four-hour blocks of time referred to as “visits,” are generally more expensive in the evening, or on weekends or holidays. The costs of services in some community programs, such as adult day service programs, are often provided at a per-day rate, but vary based on overhead and programming costs. Many care facilities charge extra for services provided beyond the basic room-and-board charge, although some may have “all inclusive” fees.

The average costs in the United States (in 2008) are:

  • $187/day for a semi-private room in a nursing home
  • $209/day for a private room in a nursing home
  • $3,008/month for care in an Assisted Living Facility (for a one-bedroomunit)
  • $29/hour for a Home Health Aide
  • $18/hour for a Homemaker services
  • $59/day for care in an Adult Day Health Care Center

Who Pays for Long-Term Care?

If you have sufficient income and assets, you are likely to pay for your long-term care needs on your own, out of those private resources.  If you meet functional eligibility criteria and have limited financial resources, or deplete them paying for care, Medicaid may pay for your care.  If you require primarily skilled or recuperative care for a short time, Medicare may pay.  The Older Americans Act is another Federal program that helps pay for long-term care services.  Some people use a variety of payment sources as their care needs and financial circumstances change.

Long-Term Care Service Medicare Private Medigap Insurance Medicaid You Pay on Your Own*

Nursing Home Care Pays in full for days 0-20 if you are in a Skilled Nursing Facility following a recent hospital stay. If your need for skilled care continues, may pay for the difference between your co-payment of $133.50/day for days 21-100. After day 100 does not pay. May cover the $133.50/day co-payment if your nursing home stay meets all other Medicare requirements. May pay for care in a Medicaid-certified nursing home if you meet functional and financial eligibility criteria. If you need only personal or supervisory care in a nursing home and/or have not had a prior hospital stay, or if you choose a nursing home that does not participate in Medicaid or is not Medicare-certified.

Assisted Living Facility (and similar facility options) Does not pay Does not pay In some states, may pay care-related costs, but not room and board You pay on your own except as noted under Medicaid if eligible.

Continuing Care Retirement Community Does not pay Does not pay Does not pay You pay on your own

Adult Day Services Not covered Not Covered Varies by state, financial and functional eligibility required You pay on your own [except as noted under Medicaid if eligible.]

Home Health Care Limited to reasonable, necessary part-time or intermittent skilled nursing care and home health aide services, and some therapies that are ordered by your doctor and provided by Medicare-certified home health agency. Does not pay for on-going personal care or custodial care needs only (help with activities of daily living). Not covered Pay for, but states have option to limit some services, such as therapy You pay on your own for personal or custodial care, except as noted under Medicaid, if you are eligible

National Spending on Long-Term Care

The total amount spent on long-term care services in the United States (in 2005) was $206.6 billion.  This does not include care provided by family or friends on an unpaid basis (often called “informal care.”)  It only includes the costs of care from a paid provider.

While most information on “who pays for long-term care” presents these national figures, it is important to remember that each person’s individual experience will differ. These figures combine the experiences of everyone receiving paid care, but there are significant variations from person to person.

On an aggregate basis, the biggest share, 49 percent, is paid for by Medicaid.  On an individual basis, however, “who pays for long-term care” can look very different. This is because people with their own personal financial resources do not qualify for Medicaid unless they use up their resources first paying for care, so-called “spending down”.  If you have reasonable income and assets, most likely you will be paying for care on your own.

Also, while Medicare overall pays for 20 percent of long-term care, it only pays under specific circumstances.  If the type of care you need does not meet Medicare’s rules, Medicare will not pay and you are likely to pay for your care on your own.

Learning more about the “rules” for when Medicare, Medicaid, other public programs or private insurance might pay for long-term care is an important part of understanding “who will pay” if and when you need care.

From: MyFederalRetirement

From: MyFederalRetirement
An important part of planning for long-term care is deciding how to pay for services. This is because long-term care is very expensive, and contrary to what many people believe, their Medicare coverage will not pay for most of the long-term care services they need. While some people may qualify for Medicaid — the major payer of long-term care services, most people won’t. There are other federal public programs, such as the Older Americans Act, or state funded programs, that pay some long-term care services, but like Medicaid they target those people with the most functional and financial need. Consequently, if you are one of the 70% of people over the age of 65 who will need long-term care services — there’s a very good chance you will have to pay for some or all of your long-term care services out of your personal income and resources. Paying for long-term care out of your personal income and resources can be challenging. Even if you have a modest need for assistance at home with personal care, say a visit from a home health aide 3 times a week, based on 2008 average costs, you would have to pay about $18,000 a year for those services. To make the best decisions about how to pay for long-term care you need to understand what services cost, what public programs you are eligible for and what they cover, what private financing options are available, and which ones work best for you.
What Does Long-Term Care Cost?
LTC includes a broad range of health and support services that people need as they age or if they are disabled. The majority of these services are personal care, or assistance with activities of daily living that many families are able to provide all, or some of, free. But, as care and support needs increase, paid care is usually needed to supplement family provided services and supports, provide respite to family caregivers, or to pay for more extensive services in a facility, such as a nursing home or assisted living, when individuals can no longer be cared for in their homes.
There are variations in costs based on the type and amount of care you need, the provider you use, and where you live. Home health and home care services, provided in two-to-four-hour blocks of time referred to as “visits,” are generally more expensive in the evening, or on weekends or holidays. The costs of services in some community programs, such as adult day service programs, are often provided at a per-day rate, but vary based on overhead and programming costs. Many care facilities charge extra for services provided beyond the basic room-and-board charge, although some may have “all inclusive” fees.
The average costs in the United States (in 2008) are:
$187/day for a semi-private room in a nursing home
$209/day for a private room in a nursing home
$3,008/month for care in an Assisted Living Facility (for a one-bedroomunit)
$29/hour for a Home Health Aide
$18/hour for a Homemaker services
$59/day for care in an Adult Day Health Care Center
Who Pays for Long-Term Care?
If you have sufficient income and assets, you are likely to pay for your long-term care needs on your own, out of those private resources.  If you meet functional eligibility criteria and have limited financial resources, or deplete them paying for care, Medicaid may pay for your care.  If you require primarily skilled or recuperative care for a short time, Medicare may pay.  The Older Americans Act is another Federal program that helps pay for long-term care services.  Some people use a variety of payment sources as their care needs and financial circumstances change.
Long-Term Care Service Medicare Private Medigap Insurance Medicaid You Pay on Your Own*
Nursing Home Care Pays in full for days 0-20 if you are in a Skilled Nursing Facility following a recent hospital stay. If your need for skilled care continues, may pay for the difference between your co-payment of $133.50/day for days 21-100. After day 100 does not pay. May cover the $133.50/day co-payment if your nursing home stay meets all other Medicare requirements. May pay for care in a Medicaid-certified nursing home if you meet functional and financial eligibility criteria. If you need only personal or supervisory care in a nursing home and/or have not had a prior hospital stay, or if you choose a nursing home that does not participate in Medicaid or is not Medicare-certified.
Assisted Living Facility (and similar facility options) Does not pay Does not pay In some states, may pay care-related costs, but not room and board You pay on your own except as noted under Medicaid if eligible.
Continuing Care Retirement Community Does not pay Does not pay Does not pay You pay on your own
Adult Day Services Not covered Not Covered Varies by state, financial and functional eligibility required You pay on your own [except as noted under Medicaid if eligible.]
Home Health Care Limited to reasonable, necessary part-time or intermittent skilled nursing care and home health aide services, and some therapies that are ordered by your doctor and provided by Medicare-certified home health agency. Does not pay for on-going personal care or custodial care needs only (help with activities of daily living). Not covered Pay for, but states have option to limit some services, such as therapy You pay on your own for personal or custodial care, except as noted under Medicaid, if you are eligible
National Spending on Long-Term Care
The total amount spent on long-term care services in the United States (in 2005) was $206.6 billion.  This does not include care provided by family or friends on an unpaid basis (often called “informal care.”)  It only includes the costs of care from a paid provider.
While most information on “who pays for long-term care” presents these national figures, it is important to remember that each person’s individual experience will differ. These figures combine the experiences of everyone receiving paid care, but there are significant variations from person to person.
On an aggregate basis, the biggest share, 49 percent, is paid for by Medicaid.  On an individual basis, however, “who pays for long-term care” can look very different. This is because people with their own personal financial resources do not qualify for Medicaid unless they use up their resources first paying for care, so-called “spending down”.  If you have reasonable income and assets, most likely you will be paying for care on your own.
Also, while Medicare overall pays for 20 percent of long-term care, it only pays under specific circumstances.  If the type of care you need does not meet Medicare’s rules, Medicare will not pay and you are likely to pay for your care on your own.
Learning more about the “rules” for when Medicare, Medicaid, other public programs or private insurance might pay for long-term care is an important part of understanding “who will pay” if and wh

Time to reconsider long-term-care plan

Thursday, June 11th, 2009

By Mike Causey

Looking for the perfect gift for your spouse, kids, siblings and parents? Get yourself a good long-term-care insurance policy. And pray – for yourself and your loved ones – that you never need it.Most of us buy life insurance because we reluctantly concede that someday it will pay off.Most of us buy health insurance hoping we won’t need it but knowing that eventually we will use it. But most of us buy travel insurance, fire insurance, auto insurance, long-term disability and long-term care (LTC) insurance hoping it will never pay off.Airplane crashes typically have a bad outcome. Losing a house and your belongings to a fire is not what something you hope for. And being unable to work – and draw a paycheck – or being unable to bathe, feed or dress yourself is not something anybody looks forward to.Although the federal government is a model employer in many ways, its health insurance program doesn’t cover what LTC insurance does. Nor does Medicare. You must be nearly broke before you can go on Medicaid, and it does not pay for the kind of assisted-living coverage most people would want for themselves or a loved one.LTC is on a lot of people’s minds these days, because the program offered to active and retired civil servants (and in some cases, their parents) is about to change. Premiums did not go up during the just-expired seven-year contract. But they are going up in January for many people. The increases will range from 5 percent to 25 percent, depending on age and the options people choose.The new benefits will be outlined shortly by the Office of Personnel Management. So will premiums.Arthur Stein, a certified financial planner who specializes in investments and insurance, says most people need LTC coverage. He recommends that they get a policy from a top-rated firm and that the policy have an automatic 5 percent inflation add-on each year.Mr. Stein says that many federal and postal workers can get a better deal – that is, equal benefits with lower premiums – by going outside the government program. This is especially true if they are younger and healthy enough to pass what are often more stringent underwriting requirements in a non-group private plan.While full details of the new federal LTC offering (backed by insurer John Hancock) are yet to come, Mr. Stein summarized your options this way:* Remain in your current benefit structure subject to rate increases that may apply.* Keep your premiums at about the same as what you pay now by making changes to your current benefits.* Or take advantage of a one-time opportunity to switch to the new benefit options without underwriting.That last point is important, especially if you are not in good health or are older and likely to need LTC sooner rather than later.Some of the known changes in the new, seven-year contract include:* A new two-year benefit (individuals can now buy them for three years, five years, or lifetime coverage).* A higher daily benefit available in $50 increments, from $100 to $450 per day.* Payment for informal care to family members (who did not normally live with the insured person at the time of the claim.) In that instance, informal care could be paid for up to 500 days.Triple playBills that would make it easier for federal employees to retire, telework and return to government after retirement are on the Senate fast track, cleared by the committee that controls civil service legislation last week.One proposal would require federal agencies to open up more teleworking opportunities for employees. A little more than 100,000 of the about 1.5 million nonpostal federal workers telecommute on a regular basis.Sponsor Sen. Daniel K. Akaka, Hawaii Democrat, says having more people telecommute is critical to the government’s plan to keep key services up and running during emergencies ranging from swine flu to a terrorist attack.A second bill would change retirement computation rules so that workers under the old Civil Service Retirement System could switch to part time at the end of their careers without taking a pension hit. Most of the government’s workers are under the newer Federal Employees Retirement System. But the majority of people who are within 10 years of retirement are under the old program.Finally, the Senate Homeland Security and Governmental Affairs Committee has given the green light to a bill that would remove a major barrier preventing some retired federal workers from returning to government. At present, in many instances, retirees must take a lower salary than called for by their civil-service grade. That salary is offset by the amount of the employee’s federal annuity.The bill would give retired feds the same break as private-sector retirees who can be hired by the government and allowed to keep both their private pension and their full federal salary.

Long-term care premiums to jump up to 25%

Thursday, June 11th, 2009

As many as 155,000 civilian and military employees and retirees enrolled in the federal long-term care insurance program can expect their premiums to increase by as much as 25 percent later this year or early next year.

The increases will affect most of those who are enrolled in the program’s “automatic compound inflation protection” option. Under this option, enrollees’ benefit payments increase 5 percent annually, but premiums do not regularly increase. Under the new policy, however, a range of premium increases will go into effect, depending on the age at which an enrollee first signed up for coverage. Enrollees who first purchased coverage at age 65 or younger face a premium increase of 25 percent. Those who purchased coverage between the ages of 65 and 70 face smaller increases. Those who purchased at age 70 or older face no increase.

There will be no premium increase for 69,000 employees and retirees who enrolled in the “future purchase” option, in which benefits and premiums increase every two years. The size of the increase varies based on the enrollee’s age.
The Office of Personnel Management, which oversees the benefit, said the increase is needed to cover the program’s costs.

“The announced premium increase is necessary due to changes to certain key components underlying pricing, particularly the expected return on program investments and … the number of people expected to keep the coverage until they claim benefits,” OPM said in a statement to Federal Times.
Some are worried and disappointed by the premium increase.
“So much for OPM’s ability to keep a premium down,” said Mike Miles, a Washington-area financial planner who writes the Federal Times Money Matters column. “The idea was supposed to be that [the government’s] buying power and leverage would allow [it] to force insurance carriers to keep the premiums low and level.”

One federal employee, who enrolled in the long-term care program when it started seven years ago and asked that her name not be used, said she might leave in the face of a 25 percent increase. “The whole idea of buying in early is to keep your premiums at lower rate,” she said. “But if they raise them every seven years, what’s the advantage?” But she worries that because she’s now 56 and falls in a higher age bracket, she may not find a better deal elsewhere.
“I would have hoped OPM would have done a better job,” she said. The National Active and Retired Federal Employees Association plans to meet with OPM this week to discuss the hike. “There’s a lot of questions we have,” said assistant legislative director Dan Adcock. The hike is included as part of a new seven-year contract that OPM awarded to John Hancock Life and Health Insurance Co. to administer the long-term care benefit. OPM started the long-term care program in 2002. Until now, the benefit was managed by a partnership between John Hancock and MetLife. Under the new contract, which OPM announced May 1, MetLife will play no role. OPM would not comment on why it did not choose MetLife. MetLife issued a statement that said it thought it submitted a strong proposal when it bid on the contract.

The new contract also includes new options in benefits:

  • Higher home health care reimbursement. The program currently reimburses 75 percent of the daily benefit amount for care provided by a nurse, therapist, informal caregiver, health aide or other authorized provider at home, but the new contract will reimburse 100 percent of the daily benefit amount.
  • Higher caps on benefits that can be paid out in a single day. Enrollees can now choose daily benefit caps of $50 to $300, but the new limits will range from $100 to $450.
  • Higher caps on payments for family members, friends and other unlicensed caregivers who provide informal care. The program currently covers up to 365 days of informal care in an enrollee’s lifetime, but the new contract will provide up to 500 days of coverage.
  • A new option for a two-year benefit period. The benefit period is the length of time that the policy can be expected to pay benefits. The program already lets employees choose options of either three years, five years or a lifetime.

Enrollees will have time before rates increase to decide whether to stay with the current benefit structure at a potentially higher premium, cut their benefits to keep their premiums at current rates, or switch to the new benefit structure and its higher premiums without underwriting. The Federal Long Term Care Insurance Program is optional for federal civilian employees and retirees, military members and retirees, and qualified relatives. The insurance covers care at home, adult day care, assisted living facilities, hospices and nursing homes.