CLASS Act Amended, Long Term Services and Supports in Health Care Reform

From AAPD (7/7/09):

CLASS Act: Update

The Community Living Assistance Services and Supports Act (CLASS) Act was marked up July 7, 2009 by the U.S. Senate Health Employment Labor and Pensions (HELP) Committee.  There was only one amendment to the bill proposed, debated and ultimately accecpted.

Originally, the bill called for a monthly premium cap of $65 for participants in the first ten years, with a mandate for the Secretary of Health and Human Services (who would over see the program) to maintain cost neutrality by adjusting premiums and benefits after that. Within these confines the Congressional Budget Office (CBO) report forecast a $57.8 billion savings for the federal government over the first 20 years.

Democrats on the Committee, lead by Senator Chris Dodd (D-CT) insisted that the program, as written, would be self-sustaining. Republicans on the committee argued the program was not solvent because if the premiums were not raised costs could skyrocket to $2 trillion within 75 years. They also argued that one could not tell the true cost of the bill because it was only projected out twenty years and not for seventy-five years like other entitlement programs. 

Senator Judd Greg (R-NH) offered an amendment that the bill's solvency would have to follow the 75 year guidelines and the Secretary of HHS would be responsible for setting premiums and benefits to maintain that solvency from implementation. There is no companion bill on the House side yet.

AAPD is in support of the CLASS Act and is very pleased to see it included in the Heath Care Reform legislation.

For more information on the CLASS Act see Monday's Action Alert. 

Comment Below: How do you think this ammendment affects the bill?  Will it help or hurt the overall program? 

Comments

[Nick Dupree]

CLASS Act is supposed to be a compliment to CCA, right?

WHERE'S THE CCA???

Nick

[Tom McAuliffe]

The CLASS Act is a bad bill.

The public is ignorant of the cost of long term care. It is $120 to $200 per day.

$50 per day will not solve the problem of people going broke when disabled, it will only make them think they have proper LTC planning.

With the Gregg amendment, the true premium will run up to over $100 per month. It is voluntary and only those who think there is risk will pay into the program.

This at poor risk pool will make claims very high and cost the tax payer billions in the long run.

I am all for reforming long term care and the dependence on Medi-caid and nursing homes for it's delivery, but, the CLASS Act is makes no sense to those of us who deal with LTC finance everyday.