Friday, October 14, 2011

CLASS ACT dropped by Obama Administration

The Obama administration Friday (10-14-11) pulled the plug on a major program in the president's signature health overhaul law – a long-term care insurance plan dogged from the beginning by doubts over its financial solvency.

Known as CLASS, the Community Living Assistance Services and Supports program was a longstanding priority of the late Massachusetts Democratic Sen. Edward M. Kennedy.

Although sponsored by the government, it was supposed to function as a self-sustaining voluntary insurance plan, open to working adults regardless of age or health. Workers would pay an affordable monthly premium during their careers, and could collect a modest daily cash benefit of at least $50 if they became disabled later in life. The money could go for services at home, or to help with nursing home bills.

But a central design flaw dogged CLASS. Unless large numbers of healthy people willingly sign up during their working years, soaring premiums driven by the needs of disabled beneficiaries would destabilize it, eventually requiring a taxpayer bailout.

2 comments:

  1. I'm on the fence about this issue. If only they can post this with a groupbuy system or something, then the bill will only push through when a minimum people subscribe. Don't get me wrong, I want the elderly to have proper care in the nursing home, but not if it means another recession.

    ReplyDelete
  2. I wonder if this has anything to do with hospice services, too. People, specially the elderly should get the care they deserve.

    ReplyDelete

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