Thursday, October 20, 2011

The CLASS Act Is “Dead on Arrival”

CLASS Act  News

The publication Special Needs Answers  reported that The Obama administration has suspended implementation of the CLASS Act, a proposed national long-term care insurance program that was part of the health reform law.

The CLASS Act is the first big part of the health overhaul to be killed. Health and Human Services Secretary Kathleen Sebelius described the intended program as a voluntary program wherein workers could pay premiums and would be eligible after years for a benefit that could help pay for long-term care services.

The theory sounded good: “CLASS would not only give Americans who knew they were likely to require long-term services and supports an affordable way to prepare for the future. It would also give young and middle-aged Americans a way to insure against the possibility that they would someday require this kind of care themselves. Because all benefits would be paid out of premiums, it wouldn't cost taxpayers a dime (emphasis supplied) and CLASS would provide relief for State and federal budgets, which currently … bridge the long-term care coverage gap with scarce Medicaid dollars.”

The Secretary and her analysts could not develop a program that would meet the program’s financial objectives: “When it became clear that most basic benefit plans wouldn't work, we looked at other possibilities. But …, we have not identified a way to make CLASS work at this time.” Speaking for myself and for others who work in the field, it is clear that our leaders and legislators do not understand the import of the laws they are proposing and passing and they try to accomplish things that are near impossible.

The cost of nursing home care and long-term care has risen dramatically in the past two years. How are legislators to structure a program that will predict the economic realities of long term care in the future?

I respectfully suggest that they are out of their league.

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