Report Elicits Renewed Criticism Of CLASS Program

Posted by on Sep 19, 2011 in Employee Benefit | 0 comments

Politico (9/16, Kenen) says, “A new report adds fresh details to the conventional wisdom that a new long-term care insurance program is fiscally out of whack — but there’s also widespread agreement among experts that there are lots of ways to try to fix it.” The data, released by congressional Republicans, “lambasted” the Community Living Assistance Support and Stability (CLASS) “program as a boondoggle that Democrats rammed through Congress during health reform while knowing full well it would be a fiscal time bomb.” Politico notes that HHS Secretary Kathleen Sebelius has stated that “the law — modified after the summer of 2009, the starting point for the Republican report — gives HHS the power to make changes, and set premiums, so that the program can be made to work.”

The Washington Post (9/16, Kliff) “Wonk Blog” reports that recently released emails show the concern “over the CLASS Act’s financial stability. The long-term insurance program relies on voluntary enrollment.” Should “only a small group of unhealthy people — those who anticipate using the services — sign up, the program could quickly destabilize.”

Full Article — http://www.politico.com/news/stories/0911/63642.html