New federal LTC program attracts 265,000 applicants. (Life/Health: Marketplace).

Some 265,000 federal employees applied for long-term-care insurance during the open season of the Federal Long Term Care Insurance Program, according to the company formed to run it.

Long Term Care Partners LLC, a partnership of John Hancock Life Insurance Co. and Metropolitan Life Insurance Co., said that when underwriting is complete this spring, the program is expected to be the largest employer-sponsored LTC insurance program in the country with more than 215,000 enrollees. Congress created the federal program in 2000, and John Hancock and MetLife won the program contract during the bidding process.

Open enrollment ran the last six months of last year, though the education campaign began in February 2002. Frank Titus, assistant director for Long Term Care Insurance at the U.S. Office of Personnel Management, which sponsors the program, said the education campaign reached eight million people through meetings, mailings and a Web site. A million requested information kits. Previous estimates were that 20 million would be eligible for enrollment, including members of employees' families.

Enrollees so far are nearly evenly split between a group of active employees, military personnel and their spouses, and a group of annuitants, their spouses and other qualified relatives. Approved applicants are 54% female. Premiums are expected to be more than $250 million annually.

Long Term Care Users

Use of long-term care insurance is split almost evenly between senior
citizens and working-age adults.

Adults age 65 and over  53%
Working-age adults      44%
Children                 3%

Source: Federal Long Term Care Insurance Program

Note: Table made from pie chart