The End of CLASS Act
It stirred controversy in Congress and people held polls to see if it is really essential, but before it can start working wonders in the area of long term care CLASS Act was scrapped.
This issue should not really come as a surprise since there was never actually a time when government officials shared the same view on the Community Living Assistance Services and Supports Act (CLASS Act).
Some secretly hoped that the said health insurance program will work out for the big population of uninsured residents in the country but majority of them were against it and even labeled it as a scheme. Despite all of the negative opinions that aim to thwart the CLASS Act, which is under the health care reform Obamacare, it still managed to turn into law in 2010.
CLASS Act was designed for people in the workforce who cannot afford a long term care insurance (LTCI) policy or whose application for LTCI coverage was declined by insurance companies due to a pre-existing condition or symptoms of a chronic illness.
Unfortunately, the CLASS Act was never thought of as a good alternative to the ideal LTCI policy. Many in Congress saw that the program was unsustainable since its funds will merely come from monthly premiums that will be collected from the Act’s voluntary members who are more likely to be at high risk of chronic care.
Still, there is no denying that some segments of the population had anticipated what they can get out of the program after the enrollment which was supposed to be slated in the first quarter of 2013.
Long Term Care CLASS Act Ceased
Now that the White House has ceased the implementation of the CLASS Act, the question that goes out to many uninsured Americans is how they intend to plan their future health care needs?
Some of them who are moving towards the age of retirement say they are looking at reverse mortgages. Others are considering putting aside their 401(k) while a big number of families are still hoping that Medicare will expand its coverage so that the needs of the elderly shall be met.
With the death of the CLASS Act, it appears that senior citizens who are aspiring to receive quality care in the not-so-distant future are left with no other choice but a long term care insurance (LTCI) policy. The matter of the fact is that CLASS Act’s offerings are less than half of what owners of LTCI policies can receive in the future.
According to the Health and Human Services members of CLASS Act can receive up to $75 in daily benefits once they qualify for care. Unfortunately, this value does not even meet the projected hourly rate of a home health aide beginning 2030 when long term care costs increase fourfold.
So, even if it prospered in long term care CLASS Act wouldn’t have stayed that long as people will eventually realize later on that they’re investing too much and receiving so little.
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