Federal Long-Term Care Insurance (FLTCIP): What Federal Employees Need to Know in 2026

The Federal Long Term Care Insurance Program (FLTCIP) has been closed to new applicants since December 2022 — and the suspension has been extended until at least December 2026. Current enrollees absorbed up to an 86% premium increase in 2024. Federal employees who want long-term care protection now must plan around the private market. Here's what that means for your situation.

The current status: suspension until at least December 2026

OPM suspended new FLTCIP applications in December 2022, citing "ongoing volatility in long-term care costs and a diminished insurance market." In November 2024, OPM extended that suspension for an additional 24 months, meaning no new enrollments will be accepted before December 19, 2026 at the earliest — and no guarantee it reopens then.

For current enrollees: coverage, claims reimbursement, and premium payments continue normally. What current enrollees cannot do is apply for increased coverage. If you have a $200/day benefit and now believe you need $350/day, you cannot adjust that during the suspension.

For federal employees without FLTCIP coverage: the program is simply unavailable. There is no waiting list, no qualifying life event exception. If you want LTC insurance before December 2026 — and given the program's uncertain future, possibly ever through FLTCIP — you're going to the private market.

The 2024 premium increase: up to 86%

The first FLTCIP premium increase in seven years took effect January 1, 2024. Affected enrollees saw increases ranging from 49% to 86%, depending on their benefit design and age at enrollment. The average was approximately 86% for the cohort most affected.

Enrollees who received rate hike notices were given options: pay the new premium, reduce benefits to hold the premium steady, or cancel. This is the same response framework used by commercial LTC carriers — and the same analysis applies. See our LTC premium rate hike response guide for how to evaluate those choices.

Current FLTCIP enrollees facing premium strain should also check whether their policy is still sized appropriately for today's care costs — the 2024 hike likely indicates benefit design that hasn't kept pace with inflation.

What FEHB and TRICARE do not cover

One of the most common misconceptions among federal employees is that Federal Employee Health Benefits (FEHB) covers long-term care. It does not. FEHB is health insurance — it covers acute medical care, hospitalization, prescription drugs, and preventive care. It does not pay for custodial care: help with bathing, dressing, meals, or any activity of daily living (ADL) once you're medically stable but functionally dependent.

TRICARE (military health coverage) similarly excludes custodial long-term care. The VA covers some LTC for veterans with service-connected conditions, but eligibility and benefit scope are limited. VA Aid & Attendance provides up to $29,093/year¹ for qualifying wartime veterans — meaningful but far below average nursing home costs of $115,000–$130,000/year. See our VA Aid & Attendance guide for eligibility details.

How federal retirement income changes the LTC math

Federal employees — particularly career FERS employees — often enter retirement with a meaningful income floor that changes the LTC planning calculus in important ways.

A FERS employee who retires at 62 with 30 years of service and a $120,000 high-3 salary receives a pension of approximately $39,600/year (1.1% × 30 × $120,000) plus Social Security. That pension continues during a care event. For LTC planning purposes, this income reduces the daily "care gap" — the difference between care costs and what income covers.

Example: A nursing home in your state costs $350/day. If your pension and Social Security provide $150/day of coverage, you need insurance or reserves for the $200/day gap — not the full $350. This is why LTC insurance coverage sizing for federal employees often looks different than it does for someone with no pension.

CSRS employees (hired before 1984, no Social Security) typically have larger pensions — the CSRS formula produces 56–80% income replacement for 30–42 year careers — which further shrinks the care gap. This doesn't eliminate the need for LTC planning, but it changes the amount of insurance that makes sense to carry.

The TSP balance is the other key variable. Average TSP balances at retirement vary widely, but a federal employee with 30+ years of contributions and reasonable allocation often retires with $400,000–$800,000 in TSP. Combined with a pension, some of these households cross the threshold where self-funding makes sense — at least partially. See our self-fund strategy guide to model whether your numbers get there.

Options for federal employees today

The private market is open. Here's a realistic view of what's available — without the commission bias that FLTCIP was partly designed to avoid.

Traditional LTC insurance (private market)

Four carriers still actively write individual LTC policies in 2026: Mutual of Omaha (A+), Thrivent (A++), NGL (A), and New York Life (A++). Premium rates are age- and health-based; buying in your mid-50s vs. mid-60s can produce a 40–60% premium difference for the same benefit design. The 2026 HIPAA eligible premium limits — $930 (ages 41–50), $1,860 (ages 51–60), $4,960 (ages 61–70), $6,200 (ages 71+) — determine the deductible portion for self-employed federal employees and retirees itemizing above the 7.5% AGI floor.²

FERS retirees who are self-employed in a post-federal career can deduct LTC premiums above the line under §162(l). Most federal employees on payroll cannot deduct premiums individually but may benefit from tax-advantaged HSA funding if eligible. See our LTC tax deductions guide for the full analysis.

Hybrid life+LTC insurance

Hybrid policies (Lincoln MoneyGuard III, Pacific Life CareMatters II, OneAmerica Asset-Care) combine a death benefit with an LTC acceleration rider. They typically require a larger upfront premium — often a single premium lump sum funded from a non-qualified annuity or old life insurance via a 1035 exchange — but offer a return-of-premium guarantee that traditional policies do not. For federal employees with maturing whole life policies or non-qualified annuities from earlier in their career, this is worth modeling. See our hybrid LTC guide for honest analysis of who these products fit.

Self-fund with TSP and pension income

For federal employees with combined household assets above $1.5–2M (including TSP, non-retirement accounts, and present value of pension), self-funding is a legitimate option that the private-insurance sales channel has every incentive to dismiss. The pension income floor means the portfolio drawdown required per year of care is smaller than it would be with no pension. A fee-only advisor can run the breakeven analysis without a product to sell. See our self-fund vs insure calculator to stress-test the numbers.

Short-term care insurance

Short-term care policies cover up to 360 days of care and are significantly easier to qualify for — useful for federal employees in their late 60s or 70s whose health history may disqualify them from traditional LTC underwriting. This is a partial solution, not a complete one, but pairs usefully with a pension that can sustain some self-funding for longer events.

Decision framework by current situation

What a fee-only advisor adds here

The FLTCIP suspension has pushed a large population of federal employees into the private market — where most of the advisors they'll encounter earn commissions on the products they recommend. A fee-only advisor models self-funding as a legitimate option (it often is for senior GS employees with 30+ year careers), evaluates private policies without product bias, and can coordinate LTC planning with your FERS/CSRS pension, TSP RMDs, Social Security timing, and Medicare/IRMAA exposure. These are not simple interactions.