Democrats hit feds' long-term care issues and Trump's planned retirement cuts - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
June 26, 2017 Newswires
Share
Share
Post
Email

Democrats hit feds’ long-term care issues and Trump’s planned retirement cuts

Congressional Documents & Publications

In November, fuming members of Congress demanded to know how the Office of Personnel Management (OPM) would stabilize a long-term care program that shocked participants with price hikes of as much as 126 percent.

Seven months later, they are still waiting for answers - but not patiently.

It was at a House government operations subcommittee hearing a few days after Thanksgiving when Virginia Rep. Gerald E. Connolly, the top Democrat on the panel, pressed an agency leader on plans to prevent another debacle in the insurance program.

The insurance for purchase by federal employees and retirees is provided by the John Hancock Life and Health Insurance Co., with questionable OPM oversight.

"We do not have a proposal that is ready for being shared with the committee at this time," John O'Brien, then OPM's director of health care and insurance under the Obama administration, told the hearing. "The options and the discussion that has been offered around here goes in a number of different directions. We would like to evaluate those possibilities and come to this committee and this group with a proposal that we could really play out and we've weighed all the pros and cons, and we have not yet done that."

Connolly: "Any idea of the timeline when you will do that?"

O'Brien: "We are continuing to work. I cannot give you a timeline at this time, sir."

Added Rep. Don Beyer (D-Va.): "We really need a commitment from you to have to do things differently."

Two hundred and five days later, they still seek that commitment.

In a letter sent Thursday, Beyer and Connolly again asked OPM when it will have a plan to protect long-term care enrollees from sudden and dramatic premium increases.

Complaining that O'Brien's answers "were not sufficient," the congressmen said "in order to avoid premium price shock each time there is a new FLTCIP (Federal Long Term Care Insurance Program) contract, we must have an understanding of how OPM plans to address these urgent matters going forward."

Urgent is not the way to characterize OPM's response to questions about long-term care.

An agency spokesperson declined to say what, if anything, has been done to stabilize the program since the November hearing. Even basic questions related to the number of people in the program were deferred. There were about 274,000 last year.

"OPM has received the letter, and we are reviewing it," an agency statement said. "OPM does not have anything additional to add at this time."

The lack of agency accountability adds fuel to the ire.

"The utter fecklessness of that office and having no answers, no recommendations, no reforms, no proposals is astounding," said Connolly in an interview, "and a terrible disservice to the federal employees and retirees who counted on this service."

The indignation of the congressmen is outpaced by the anger of the program's participants.

Said Kathy Olenik, a Dunkirk, Md., Interior Department retiree: "I have not heard a word from OPM on these outrageous rates I am required to pay to keep my long-term care insurance. I really question if they have the ability to do anything, seems like the insurance company has a hold over OPM."

Jerome Duncan, a District resident and Department of Veterans Affairs annuitant, said: "I am VERY [original emphasis] disappointed in the performance of OPM regarding the long-term care (LTC) program. They have tolerated the outright theft of a lot of money from some current and many former federal employees ... OPM and the Federal Government owes us a better effort and product."

Neil Ray, a Fish and Wildlife Service retiree in Silver Spring, had this to say: "Like many others, my wife and I were outraged at the OPM options offered a year or so ago. After faithfully paying our premiums for many years, we felt scammed by the sudden price jumps to the program."

Said Beyer: "We just don't want a recurrence of the disaster that happened last time."

Beyer, along with more than 100 House Democrats, led by Rep. Jamie B. Raskin (D-Md.) and Connolly, also signed a letter opposing President Trump's planned cuts to federal retirement programs. They sent it last week to Speaker Paul D. Ryan (R-Wis.) and Rep. Nancy Pelosi (Calif.), the House Democratic leader.

"Specifically, the President has proposed increasing the amount federal employees pay toward their retirement fund, which is tantamount to a pay cut," they wrote.

In a statement to The Washington Post, the Office of Management and Budget noted the 1.9 percent pay raise and the six weeks of paid parental leave available to feds and others in Trump's proposed fiscal 2018 budget plan and said it "will help bring Federal retirement benefits more in line with the private sector while reducing long term costs."

That's not good enough for the Democrats or federal employees.

"We will oppose any effort to balance the budget on the backs of public servants," the House members' letter said, "and we urge you to stop legislation from being brought to the House floor that would undermine and demoralize our federal workforce."

https://www.washingtonpost.com/news/powerpost/wp/2017/06/23/dems-hit-feds-long-term-care-issues-and-trumps-planned-retirement-cuts/?utm_term=.a2c6826becda

Read this original document at: https://connolly.house.gov/news/documentsingle.aspx?DocumentID=1041

Older

Collins and New York State Leaders Praise Inclusion of NYS Property Tax Reduction Language in Senate Obamacare Repeal Bill

Newer

San Antonio Express News: Senate unveils its Obamacare overhaul

Advisor News

  • What to discuss during the first retirement planning meeting
  • Inflation, competing priorities and uncertainty erode retirement security
  • As health premiums rise, 1 in 8 workers cut retirement savings
  • CT governor’s candidates claims: What’s true, and what’s misleading
  • Retaining clients by giving them a memorable experience
More Advisor News

Annuity News

  • National Life Group expands annuity portfolio
  • AM Best to Join Life/Annuity Insurance-Focused Panel Discussion at Capitol Forum Event
  • USAA Earns No. 1 Ranking in JD Power Individual Annuity Study for the Third Consecutive Year
  • How flexible annuities fit today’s retirement portfolios
  • Foresters Financial appoints Tom Ross as chief distribution officer for U.S. annuity sales
More Annuity News

Health/Employee Benefits News

  • Medicare Plus supplement vs. Medicare Advantage (Maybe) 2026– Healthful Hints
  • ‘Medically frail’ Medicaid enrollees won’t have to prove their inability to work to keep coverage
  • IMPLEMENTATION OF IMMIGRANT ELIGIBILITY RESTRICTIONS FOR ACA MARKETPLACE SUBSIDIES UNDER THE 2025 RECONCILIATION LAW: ISSUES TO CONSIDER
  • ACA HEALTH INSURANCE RATES RELEASED FOR 2027 OPEN ENROLLMENT
  • HEALTH INSURERS AND PHARMACY BENEFIT MANAGERS URGED TO ASSIST FAMILIES AFFECTED BY LULU M. ROSS ELEMENTARY SCHOOL FIRE
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Insignia Life S.A. de C.V.
  • FINANCIAL FRAUD
  • Security Benefit Announces Planned Dividend Rate Reset for Series B Preferred Stock
  • Palmetto Heritage and Atlantic Coast Life Announce Discussions Regarding Potential Acquisition
  • Jury finds insurance company acted in bad faith, awards Nebraska woman $11.3M
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.