Health Care Reform: CLASS Act

No, that is not a compliment to the health care reform legislation passed earlier this year.  Part of the legislation included the creation of a long-term care insurance plan by the government, called the CLASS act (Community Living Assistance Services and Supports program). 

Here is an outline of the CLASS act::

WHO CAN ENROLL IN CLASS? Working adults will be able to make voluntary premium contributions either through payroll deductions through their employer or directly.


WHO CAN ENROLL IN CLASS? Working adults will be able to make voluntary premium contributions either through payroll deductions through their employer or directly.


WHO IS ELIGIBLE FOR BENEFITS? Adults with multiple functional limitations, or cognitive impairments, will be eligible for benefits if they have paid monthly premiums for at least five years and have been employed during three of those five years.


WHO IS ELIGIBLE FOR BENEFITS? Adults with multiple functional limitations, or cognitive impairments, will be eligible for benefits if they have paid monthly premiums for at least five years and have been employed during three of those five years.


WHAT ARE THE BENEFITS? Adults who meet eligibility criteria will receive a cash benefit that can be used to purchase non-medical services and supports necessary to maintain community residence;  payments for institutional care are permitted. The amount of the cash benefit is based on the degree of impairment or disability, averaging no less than $50 per day.


WHAT ARE THE BENEFITS? Adults who meet eligibility criteria will receive a cash benefit that can be used to purchase non-medical services and supports necessary to maintain community residence; payments for institutional care are permitted. The amount of the cash benefit is based on the degree of impairment or disability, averaging no less than $50 per day.


HOW IS THE PROGRAM FINANCED? CLASS is financed by voluntary premium contributions paid byworking adults, either through payroll deductions or direct contributions.


HOW DOES CLASS INTERACT WITH MEDICAID? CLASS will generally be the primary payer for individuals who are also eligible for Medicaid.

None of the benefits will be payed out until 2017, and is intended to provide support to individuals with function or cognitive impairments can remain in the community and not enter long-term care facilities.  The CLASS act can provide payments to individuals in long-term care facilties who are receiving Medicaid support.  Beneficiaries will get to keep 5% of the CLASS act for personal allowanced and the remainder will offset Medicaid support to the faciliity.

A beneficiary needs to pay premiums for five years, and work at least three out of five years before being eligible for disbursements.

The CBO predicts the CLASS act will reduce the national debt by 70 billion over 10 years. However, this estimate includes 5 years of payments before any disbursements are made.