Long-Term Care Plan Transition »

Long-Term Care Plan Transition

Although the A&M System will be discontinue its contract for group Long-Term Care with John Hancock, you will be able to continue your coverage by paying premiums directly to John Hancock. Correspondence will be sent directly from John Hancock to you. Methods available will include monthly billing and automatic bank withdrawal. The bills are mailed monthly and you can choose to pay monthly or you may pay a quarterly amount and the next bill would be adjusted accordingly.  A form for the automatic bank draft withdrawal will be included with the first direct bill.

For monthly paid employees, your premium for the month of December, the last to be collected by the A&M System, will be deducted from your January 2 paycheck.  Your first bill from John Hancock, premium for the month of January, will be mailed to you the 2nd week of December.    

In addition, we have just received word that the Texas Department of Insurance has approved the Long-Term Care rate increase requested by John Hancock.

The increases will vary depending upon your age when you first enrolled in coverage and the inflation option you selected, i.e. the Future Purchase Option (FPO) in which future increases in coverage are of­fered periodically or the Automatic Benefit Increase (ABI) in which annual increases in coverage are au­tomatic. Those who enrolled in the FPO plan between the ages of 20 and 50 will see an increase of 36% - 37% while those enrolling between the ages of 61 and 70 will see an increase of 10% - 24%. Those who enrolled in the ABI plan between the ages of 20 and 50 will see an increase of 76% while those enrolled between the ages of 61 and 70 will see an increase of 26% - 51%.

To mitigate the effect of the rate increase, John Han­cock has developed personalized options for you to re­duce benefits in ways that allow you to retain coverage at premiums that are close to what you’re currently paying. If you have the Future Purchase Option, you’ll generally be able to lessen the effects of the increase by decreasing your Lifetime Maximum Benefit, your Daily Maximum Benefit, or a combination of the two. If you have the Automatic Benefit Increase option, you’ll be able to avoid the increase by reducing your annual inflation percentage from 5% to 3.2%. This information will be sent to you in the Spring, since the increase will likely go into effect on or about July 1.

If you are going to cancel coverage, premium refunds cannot be made. However, the Non-forfeiture Benefit (Reduced Lifetime Maximum Paid-up Benefit), allows you to stop making premium payments for any reason and keep a reduced level of coverage if you have been continuously insured under the plan for at least three years. If you exercise this benefit, you will keep your full Daily Maximum Benefit (DMB) amount, but the Lifetime Maximum Benefit (LMB) will be reduced. Your reduced LMB will equal the greater of 30 times your DMB or the sum of premiums paid in. If you exercise this benefit after at least 10 years of continu­ous coverage, the reduced LMB would be equal to the greater of 90 times the DMB or the sum of premiums you paid.