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Employee and Retiree Resources

Open Enrollment Information

HBE

Health, Benefits, & Employee Services (HBE)
Phone: (505) 844-4237

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Frequently Asked Questions:
John Hancock Group Long-Term Care Insurance Program

Q. Why did Sandia cancel its agreement with Mutual for Group Long Term Care?
A. This was a mutual decision between Sandia and Mutual. And Mutual was not able to update their coverage options.
Q. Why won’t Mutual accept any new long term care applications from Sandia employees?
A. Mutual as an individual insurance provider has made a decision to stop accepting any more group applications. This is due to the cancellation of the group insurance agreement.
Q. What happens to my long term care coverage with Mutual?
A. Your individual certificates for coverage with Mutual will continue as long as you continue paying your premiums. Administration of Policy GLTC-7V83 for existing certificate holders remains unchanged.
Q. What option do we have for group long term care coverage?
A. Effective May 1, 2009, Sandia will enter into an agreement for Group Long Term Care with John Hancock.
Q. Can my Long Term Care coverage be transferred from Mutual to John Hancock?
A. The plan coverage under John Hancock is different from what Mutual offers and conversion is not possible. You may, however, buy additional coverage with John Hancock.
Q. What’s the difference between Mutual’s coverage and John Hancock’s?
A. John Hancock can offer more options for daily maximum benefits and lifetime maximums for nursing home care. With John Hancock you can keep a certain level of coverage after paying premiums for a certain length of time. This was not an option with Mutual. John Hancock also offers coverage for informal care and stay at home benefits that Mutual did not offer?
Q. How can I find out more information about John Hancock’s Group Long Term Care?
A. Effective March 9, 2009, you will be able to get more information on John Hancock’s website: http://sandia.jhancock.com (username: sandia; password: mybenefit) or by calling the John Hancock Group Long-Term Care Call Center at 1-800-932-4304, Monday through Friday from 8:30 a.m. to 6:30 p.m., Eastern Time.

Questions added after 3/17/09

Q. In a side by side comparison, the John Hancock plan looks much more expensive for the same level of coverage(e.g., 150/day with inflation factor) as the Mutual of Omaha plan. True? If someone has Mutual of Omaha, what would be the benefit of switching coverage, if any?
A. If an individual bought Mutual when it first went into effect in 1996, then it’s better for them to stay with Mutual today. You won’t be able to find a better premium rate in this day and age.

Mutual of Omaha’s rates were developed in 1995. John Hancock’s rates were developed in today’s market.

Some differences between John Hancock versus Mutual of Omaha are:

  • Inflation protection of 5% compounded annually without a cap with John Hancock.
  • Inflation protection of 5% compounded annually for only 20 years capped at 165% of the original Maximum Daily Benefit with Mutual.
  • Stay-at-home benefits with John Hancock
  • Informal care at home with John Hancock
  • John Hancock offers reinstatement of your original Lifetime Maximum (if it has not been exhausted and if the insured provides evidence of insurability) after no claims for 24 months while remaining continuously insured on a premium paying basis.
  • There is an approx. $60 monthly premium increase for the inflation protection with John Hancock versus the Mutual premium developed in 1995. Here are the inflation protection monthly premium rates for the $150 Daily Maximum/10 year lifetime maximum with Inflation Protection:
    • John Hancock rate at age 30 is $66.60
    • Mutual rate at age 30 is $18.95

    • John Hancock rate at age 40 is $97.80
    • Mutual rate at age 40 is $36.85

    • John Hancock rate at age 50 is $138.30
    • Mutual rate at age 50 is $78.01

    • John Hancock rate at age 60 is $248.70
    • Mutual rate at age 60 is $188.26

    Without the Inflation Protection the monthly rate differences are minimal (about $5 or $6) as follows:

    • John Hancock rate at age 30 is $16.80
    • Mutual rate at age 30 is $11.04

    • John Hancock rate at age 40 is $24.60
    • Mutual rate at age 40 is $19.54

    • John Hancock rate at age 50 is $44.70
    • Mutual rate at age 50 is $38.49

    • John Hancock rate at age 60 is $95.70
    • Mutual rate at age 60 is $96.08
Q. If Mutual isn’t in the business of growing this type of insurance product, what are the chances that they might discontinue the plan altogether in the future. What happens to those participants? Can Mutual just stop offering the plan?
A. Mutual is still a viable insurance company. Insurance companies are regulated by the Department of Insurance. People are also concerned about John Hancock being around in the future. What John Hancock is saying is that they have $300B in assets and their investments are in farm land and forest land. Their investment in banking is less than half a percent.

Mutual will continue to honor current policy holders while they continue paying their premiums. They are still offering individual long term care products and would be happy to provide any interested individual with information on available plans.