CLASS Act Scrapped

by Amanda Griffin-Johnson Earlier today, Health and Human Services Secretary Kathleen Sebelius announced that the Community Living Assistance Services and Supports (CLASS) Act is not going to be implemented. The controversial long-term care program is part of the Patient Protection and Affordable Care Act (PPACA) and has been under scrutiny since before the law was enacted....

by Amanda Griffin-Johnson

Earlier today, Health and Human Services Secretary Kathleen Sebelius announced that the Community Living Assistance Services and Supports (CLASS) Act is not going to be implemented. The controversial long-term care program is part of the Patient Protection and Affordable Care Act (PPACA) and has been under scrutiny since before the law was enacted.

Because of concerns regarding the long-term feasibility of the program, HHS was tasked with developing a plan for the CLASS Act which would be actuarially sound and financially solvent for at least 75 years. They were unable to do so.

In a letter to Congressional leaders, Secretary Sebelius wrote:

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 under the law that meets the needs of those seeking protection for the near term and those planning for the future.
…
But despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.

The announcement is not a complete surprise. In September, the Senate cut off appropriations for the program, the program’s actuary was fired and all other staff were reassigned.