Benefits Plans - Long-Term Care Plan
Long-term Care Enrollment Discontinued; Coverage Continues for Current EnrolleesJohn Hancock, the university's Long-Term Care plan administrator, discontinued enrollment for Long-Term Care coverageeffective January 1, 2012. John Hancock advised the university that it is no longer accepting new entrants to the policy due to the low interest rate environment that is expected to continue for an extended period. This announcement from John Hancock means that Long-term Care insurance is not available for new enrollments as of January 1, 2012. Please note, the decision not to accept new entrants does not in any way affect employees or dependents who already have this coverage. John Hancock will continue to provide ongoing service to everyone currently covered under this policy. At this time, the Benefits Office does not have any additional information about whether or when long-term care insurance may be available again in the future. |
Frequently Asked Questions
1. Why is John Hancock closing down enrollments under our Group long-term care policy?
According to John Hancock, this decision was prompted by the historically low
interest rate environment that is expected to continue for an extended period of time.
2. Will employees who are newly eligible be able to enroll after December 31, 2011?
No. The decision to cease new enrollments applies to all applicants.
3. For applicants who need to go through underwriting, does the underwriting need to be completed by December 31, 2011?
No. The enrollment application must be postmarked by December 31, 2011, but
underwriting activities may take place in early 2012.
4. Will insureds be able to purchase optional inflation additions or other coverage increases after December 31, 2011?
Yes. The discontinuance of new enrollments does not affect inflation additions and
other coverage increases or changes available under the policy.
5. Does this impact John Hancock's ability to pay claims?
No. John Hancock will continue to service all current insureds, and any current or
future claims will not be affected by this action. John Hancock continues to be highly
rated by the five rating agencies, and ratings are a comprehensive measure of the
financial strength of an insurance company.
6. Who should I call if I have further questions?
Please call your John Hancock customer service line at 1-888-231-4324.
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.