Federal Retiree Long-Term Care: Frequently Asked Questions

No. OPM has extended the suspension of new FLTCIP applications and coverage increases through at least December 2026. Existing enrollees - about 267,000 people - keep their coverage unchanged; the suspension only affects new applicants and increase requests.

No. FEHB covers medical care, including hospital stays and Medicare-aligned skilled-nursing recovery, but not the ongoing custodial care and room-and-board cost of assisted living. Neither does Medicare.

Yes. Traditional and Roth TSP withdrawals, whether structured as monthly payments or larger distributions, are a common funding source. Required minimum distributions from traditional TSP begin at the applicable age and are taxable; Roth TSP qualified withdrawals are not.

Not automatically. The annuity counts as income toward Medicaid's eligibility test in DC, Maryland, and Virginia, but each jurisdiction has mechanisms to address income above its limit. Once approved, most of the annuity is generally applied toward the cost of care, with a small personal-needs allowance retained.

It's the realistic alternative right now, since FLTCIP isn't accepting new applicants. Standalone LTC policies and hybrid life/LTC policies are both available, subject to medical underwriting - the earlier you apply, the more likely you are to qualify at a reasonable rate.

Indirectly, yes. It determines how much continuing income a surviving spouse has, which affects both their ability to pay for future care privately and how quickly they'd need to spend down assets before Medicaid eligibility.