Why is it Impossible to Revive CLASS Act?
Many hopefuls thought the repeal of the Community Living Assistance Services and Supports Act or CLASS Act in October of 2011 was just a temporary thing and that the said program could still be reconsidered by Congress. Unfortunately, there is no glimmer of hope left for it as the government has seriously closed this chapter already.
Aside from Congress, many government agencies find the said health insurance program unsustainable. Before it was junked, it was reviewed extensively by the Department of Health and Human Services (HSS) that is why they were able to come up with the conclusion that there is no viable path forward for CLASS for the time being.
Based on interviews which were conducted with the HSS, the program was only attracting individuals who at risk of requiring higher levels of care. Younger people in the workforce were not showing much interest in the program so if this is going to be the case all throughout the program will not survive.
It would be difficult to maintain a program which aims to aid if it is not financially stable. According to the HSS Secretary the CLASS has to be financially sound for a period of 75 years before it can be offered to the public again. From the looks of it, though, there won’t be a second chance for this program.
From the moment of its inception and inclusion in the administration’s health care law, many government officials already saw the program as a Ponzi scheme. As a matter of fact, the President himself had second thoughts about including the CLASS program into the Obamacare but did it, anyway.
Who Could’ve Benefited from CLASS Act?
It was late Sen. Ted Kennedy who conceptualized and passed the CLASS program which was signed into law two years ago.
Primarily for the middle class who are looking for an alternative to traditional long term care insurance (LTCI) policies, the said program would’ve provided LTCI coverage for a smaller premium. Well, that’s what the public has been told but upon reviewing the Act the Obama administration figured it’s better to end it rather than wait for irreparable damages to turn up.
Perhaps the administration figured the program would end anyway before it has paid its first claim. Besides, the daily benefit amount which the Act has promised to pay its members who can satisfy the five-year premium and its benefit triggers won’t be sufficient for everybody’s health care needs.
For those who will be requiring in-home care, perhaps a daily benefit amount of $50 would be enough. But what about those individuals who will be requiring nursing home care?
Daily rates of nursing homes nowadays start at $210 so if the Act is only capable of paying out $50 a day its members will have higher out-of-pocket costs which would defeat the purpose of buying LTCI coverage.
Long term care is a hot topic these days as its cost is too much for the average American family. However, with a good plan one can get by the cost of care without requiring assistance from government programs that are similar to the now defunct CLASS Act.
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