The (Official) End of the CLASS Act
|October 14, 2011||Posted by Ashley Cohen under Blog||
Today, the White House announced they are officially pulling the plug on the CLASS Act, a voluntary long-term care insurance program included in ACA. Under the Act, those who participate would receive a minimum of $50/day to fund needed long-term services. Over the past few months, there have been many debates over whether the program is fiscally sound. The program, which is based on voluntary enrollment, could collapse if only those who need services enroll. Officials stated that premiums were too high to attract adequate enrollment.
The cancelation of CLASS reduces the projected 2013 ACA budget savings by $86B (out of $127B).
Whilst some might take this as a sign of a flawed bill, it is important to note that this demonstrates the administration’s flexibility in implementing provisions that will achieve the goals of ACA.