The Obama administration is working aggressively to fend off critics of the CLASS Act, a voluntary insurance program created by the new health law to help individuals who require long-term care remain in the community. Health and Human Services Secretary Kathleen Sebelius promised to pursue changes to ensure the program is financially self-sustaining into the future.
The Community Living Assistance Services and Support Act, to be run by HHS, would provide cash benefits that could be used for a variety of non-medical expenses, such as paying for a home health aide or a family member who provides care, modifications to a home and special transportation needs.
Opponents, such as Brian Blase at the Heritage Foundation, argue that the program won't be able to support itself therefore could become a burden to taxpayers. Blase says the program is "a Ponzi scheme that transfers money from current payees to current beneficiaries."
Acknowledging concerns that the program will not be self-sustaining, Sebelius said her department is considering various options to make sure that doesn't happen. She emphasized the importance of attracting healthy, less-costly people to the program to keep costs in check.
She also said that her department is "looking at options for indexing premiums so they would rise along with benefits." In addition, she wants to "close loopholes" that she said might allow individuals to drop out of the program and then return without paying a penalty.
Sebelius also is contemplating ways to encourage businesses to participate so that their workers are enrolled easily. Employer participation is critical because if an employer joins the program, all of the company's working adults will be automatically enrolled unless they opt out. Others, including self-employed individuals and people whose employers do not participate, will be able to enroll on their own.
Participating employees will pay into the system through a payroll deduction. After five years of payments, people who require long-term care services will receive an average cash benefit of at least $50 a day to help them continue living in the community. On its website, HHS says the program could begin in October.
The Congressional Budget Office, in an analysis made before the health law was passed, estimated that monthly premiums for CLASS will average about $123. It said that recruiting large numbers of health participants will be critical for the overall health of the program.
Kaiser Health News is an editorially independent news service and a program of the Kaiser Family Foundation, a nonpartisan healthcare policy research organization. Neither Kaiser Health News nor the foundation is affiliated with Kaiser Permanente.
The Community Living Assistance Services and Support Act, to be run by HHS, would provide cash benefits that could be used for a variety of non-medical expenses, such as paying for a home health aide or a family member who provides care, modifications to a home and special transportation needs.
Acknowledging concerns that the program will not be self-sustaining, Sebelius said her department is considering various options to make sure that doesn't happen. She emphasized the importance of attracting healthy, less-costly people to the program to keep costs in check.
She also said that her department is "looking at options for indexing premiums so they would rise along with benefits." In addition, she wants to "close loopholes" that she said might allow individuals to drop out of the program and then return without paying a penalty.
Sebelius also is contemplating ways to encourage businesses to participate so that their workers are enrolled easily. Employer participation is critical because if an employer joins the program, all of the company's working adults will be automatically enrolled unless they opt out. Others, including self-employed individuals and people whose employers do not participate, will be able to enroll on their own.
Participating employees will pay into the system through a payroll deduction. After five years of payments, people who require long-term care services will receive an average cash benefit of at least $50 a day to help them continue living in the community. On its website, HHS says the program could begin in October.
The Congressional Budget Office, in an analysis made before the health law was passed, estimated that monthly premiums for CLASS will average about $123. It said that recruiting large numbers of health participants will be critical for the overall health of the program.
Kaiser Health News is an editorially independent news service and a program of the Kaiser Family Foundation, a nonpartisan healthcare policy research organization. Neither Kaiser Health News nor the foundation is affiliated with Kaiser Permanente.
L.A. for less than the price of sunblock. 
