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Washington, D.C.—Responding to the strong recommendation of the leader of the nation’s largest independent union of federal employees, the Office of Personnel Management (OPM) has extended substantially the period during which enrollees with automatic compound inflation protection under the government’s long-term care insurance program will have to decide about pending premium increases or coverage changes. In the interim, no premium increases will occur.

At a hearing last week, President Colleen M. Kelley of the National Treasury Employees Union (NTEU) called on OPM—in the face of premium increases of up to 25 percent—to extend the decision-making period originally scheduled to run through Dec. 14. That period is now extended to Feb. 15.

“Giving individuals and families the time in which to make an informed and appropriate decision is a positive step, and I welcome it.” President Kelley said. At last week’s joint session of the Senate Homeland Security and Governmental Affairs Subcommittee on the Federal Workforce and the Senate Aging Committee, she described the federal employees and retirees receiving news of the premium increases as being “stunned.”

Some 144,000 individuals enrolled in the higher-cost automatic compound inflation (ACI) option largely due to program marketing materials which promised they would face no premium increases. Yet, earlier this year OPM announced that this group of enrollees could see increases of up to 25 percent.

During her testimony last week, President Kelley made it clear that OPM’s efforts at providing personalized mailings detailing ACI enrollees’ options for continuing coverage was coming far too late to provide them with adequate time to consider their next step. Among the options are retaining their current coverage, with a premium increase based on their age at the time of purchase; changing benefits; or taking a percentage less in inflation protection to retain the same premium.

Several of the senators at the hearing agreed with President Kelley’s assessment and questioned OPM about the short time frame.

OPM, which sent post-hearing letters to the chairmen and ranking members of the two Senate bodies, also said the program administrator and underwriter will not collect increased premiums for this group either next January or February; any higher premiums would take effect next March 1, with the exception that any enrollee benefit increase decision requiring medical underwriting may have a different effective date.

In addition, OPM told senators it has new educational and promotional materials for the program, clearly emphasizing that premiums are not guaranteed. “We will continue to look for ways to improve transparency in our materials,” said the letter from OPM Director John Berry. The initial marketing materials for the ACI option, which President Kelley submitted with her testimony, have been roundly criticized as being misleading.

President Kelley, who expressed significant disappointment in the government’s handling of the long-term care insurance program thus far reiterated NTEU’s support for S. 1177, the Confidence in Long-Term Care Insurance Act of 2009.

The bill, introduced by Sen. Herbert Kohl (D-Wisc.), chairman of the Senate Aging Committee, would help provide consumers get a better understanding of the coverage and cost of their plans.

As the largest independent federal union, NTEU represents 150,000 employees in 31 agencies and departments.