CLASS Dismissed: Obama Admin. Cancels In-home Care Program

By:  Michael Tennant
10/17/2011
       
CLASS Dismissed: Obama Admin. Cancels In-home Care Program

Over 40 percent of all the money the administration claimed it would save by enacting ObamaCare just vanished when Health and Human Services Secretary Kathleen Sebelius cancelled the Community Living Assistance Services and Support (CLASS) program on Friday, October 14.

The program, which would have paid at least $50 a day for long-term in-home care for enrolled persons, was clearly in trouble when the Obama administration closed the CLASS office and requested that its budget be eliminated. Although the administration denied that CLASS was in danger, it stated: “A CLASS program will only be implemented if it is fiscally solvent, self-sustaining and consistent with the statute.”

The statute requires the Secretary of Health and Human Services to certify that CLASS will be actuarially solvent for 75 years before initiating the program. Sebelius found that she could not do so, writing in a letter to Congress: “Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.”

The problem is that an enrollee has to pay (relatively low) premiums for only five years before becoming eligible for full benefits, but the benefits themselves have no time limit.

Over 40 percent of all the money the administration claimed it would save by enacting ObamaCare just vanished when Health and Human Services Secretary Kathleen Sebelius (photo) cancelled the Community Living Assistance Services and Support (CLASS) program on Friday, October 14.

The program, which would have paid at least $50 a day for long-term in-home care for enrolled persons, was clearly in trouble when the Obama administration closed the CLASS office and requested that its budget be eliminated. Although the administration denied that CLASS was in danger, it stated: “A CLASS program will only be implemented if it is fiscally solvent, self-sustaining and consistent with the statute.”

The statute requires the Secretary of Health and Human Services to certify that CLASS will be actuarially solvent for 75 years before initiating the program. Sebelius found that she could not do so, writing in a letter to Congress: “Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.”

The problem is that an enrollee has to pay (relatively low) premiums for only five years before becoming eligible for full benefits, but the benefits themselves have no time limit.

Click here to read the entie article.

 

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