Health and Human Services (HHS) Secretary Kathleen Sebelius announced last week that HHS will postpone implementation of the CLASS Act indefinitely. The announcement reignited an old battle over the program, with Republicans calling for the CLASS Act’s repeal and the White House opposing the effort.
HHS Secretary Kathleen Sebelius announced that the Administration would be halting implementation of the CLASS Act in a letter to Congress. “For 19 months, experts inside and outside of government have examined how HHS might implement a financially sustainable, voluntary, and self-financed long-term care insurance program…” wrote Sebelius. “But despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.” The letter was accompanied by a report, developed by the Offices of CLASS, ASPE, and the General Counsel, that included an actuarial analysis, a study of legal risks, and an overview of marketing factors that would affect the implementation of the CLASS Act. The reports’ authors dissected several versions of the CLASS plan, each with varying degrees of vulnerability to legal challenges and solvency problems.
In response to the announcement, the Subcommittee on Oversight and Investigations and the Subcommittee on Health will conduct a joint hearing, CLASS Cancelled: An Unsustainable Program and Its Consequences for the Nation’s Deficit, next Wednesday on the program. Republicans have also responded to Sebelius’ announcement through a renewed effort to repeal the CLASS Act, an effort made easier by a new Congressional Budget Office (CBO) report that claims repealing CLASS would have no impact on the federal budget.
Despite Kathleen Sebelius’ statement, the White House has announced that it opposes a full repeal of the CLASS Act. "Repealing the CLASS Act isn't necessary or productive,” said White House spokesman Nick Papas. “What we should be doing is working together to address the long-term care challenges we face in this country." Although Papas would not say if the President would veto a repeal effort, the statement further confused advocates for the CLASS Act, many of whom are still fighting for CLASS to be implemented.
Read the full actuarial report: A Report on the Actuarial, Marketing, and Legal Analyses of the CLASS Program and Secretary Kathleen Sebelius’ letter to Congress about the program’s indefinite postponement. Also read the Associated Press article: White House Waffling on Long-Term Care Plan?
Advocacy, Facts and Figures, Financing Senior Living – Consumer Education, Insurance, Long Term Care Insurance, News, Reports
Virginia lawmakers are asking the Office of Personnel Management just why premiums in the federal long-term care insurance program are expected to zoo...
Consumer Funding Resources, Facts and Figures, Financing Senior Living – Consumer Education, Health Care, Long Term Care Insurance, Long Term Care Insurance Education, News, Research
Total health spending growth is expected to average 5.8 percent annually from 2015 to 2025, but is at a lower growth rate that the previous two decade...
Financing Senior Living – Consumer Education, Health Care, Human Resources and Organizational Development, Long Term Care Insurance, Long Term Care Insurance Education, News, Organization Development, Organizational Culture, Staffing, Staffing & Performance
Some federal employees could see long-term care insurance rate increases of up to 126 percent beginning November 1, according to the Office of Personn...
Core Principles, Elder Abuse, Family Relations, Financing Senior Living – Consumer Education, News, Resident and Family Services
The Administration on Community Living has announced grant awards of approximately $1.2 million designed to help older adults have access to legal ser...
Community Awareness and Education, Consumer Funding Resources, Engage, Facts and Figures, Financing Senior Living – Consumer Education, Health and Wellness, News, Research, Senior Living Options
Greater integration is needed between the nation’s health care and housing systems(pdf) to help manage chronic disease, improve health outcomes for se...
ALFA's Public Policy Positions, Engage, Facts and Figures, Finance, Financing Senior Living – Consumer Education, News, Public Policy
Americans face an alarming $7.7 trillion gap between what they actually have saved for retirement and what they will need, said the head of the Senate...
Facts and Figures, Financing Senior Living – Consumer Education, Insurance, Long Term Care Insurance Education, Medicaid, Research
A long term services and supports catastrophic insurance program could improve the way LTSS needs are financed in the United States, according to a re...
Advocacy, CEO, cheatsheet, Employee Compensation, Facts and Figures, Finance, Legislation, Medicaid, Medicaid, Public Policy, Staffing, Staffing & Performance
The Department of Labor this week finalized the “white collar” rule, which increases the salary threshold for workers who qualify for overtime pay. Th...
CEO, cheatsheet, Clinical Quality and Quality Care Delivery, End of Life, Facts and Figures, Health and Wellness, Health Care, Medicare, Research, Wellness Program
The new Medicare system for reimbursing providers outlined in the Medicare Access and CHIP Reauthorization Act, or MACRA, may not adequately reward go...
Business Planning, CEO, cheatsheet, Consumer Intelligence, Facts and Figures, Financing Senior Living – Consumer Education, Growth Strategies, Research
While the costs of long-term care continue to rise, assisted living continues on a slower growth trajectory than other types of long term care, accord...