Why CLASS Act Did Not Work

Although many senior Americans were affected by the demise of the Community Living Assistance Services and Supports Act or CLASS Act, there’s a bigger population that did not even seem to care when it was enacted and when it was later repealed.

The said voluntary national health insurance program, which was an offshoot of the Affordable Care Act, was intended to serve as a cheaper alternative to traditional long term care insurance (LTCI) policies. This brainchild of the late Sen. Ted Kennedy had members of the working class in mind but it later turned out that there were more retired individuals who were interested to be part of it.

Since it’s a voluntary insurance program, the Act’s pool of benefits would’ve been completely reliant on the five-year premium of each of its members. This is actually where the problem stemmed from as it eventually dawned on the Department of Health and Human Services (HSS) that there is absolutely no way that the program can be sustained if it will rely solely on the premiums of members.

Besides, there were hardly any young adults who have expressed interest in the Act. After studying the possible beneficiaries of the CLASS, HSS discovered that participants are likely to be comprised of elderly folks who are at risk of higher levels of care.

It’s not that the government refuses to support the health care needs of older people as this is something which it strongly advocates, but it was banking on the younger members of the working class to help sustain the Act’s pool of benefits.

Had the program proceeded to accepting enrollees, it would only wind up receiving a very small premium from its qualified members. Worse is when it starts to pay out benefits in 2017 as the amount of benefits that it expects to pay out is going to be much larger than the total premiums it could collect. If the government waits this long before folding up the program, it can result in bigger damages.

Nothing like CLASS Act Again

It’s going to take some time before the government can offer the public another program that will help alleviate the cost of care. Of course, the last thing it wants is to provide Americans with something similar to the defunct Act.

Instead of waiting for the government to offer a solution to the high cost of care, LTC specialists can only advise everybody to take responsibility for their future. Instead of wasting a day doing nothing but hoping for what the government has up its sleeve, take a trip to your doctor’s clinic and have your health checked.

According to elder care experts, you only have to know what you’re likely to need in the future health care wise and everything else will follow. Expensive LTCI policies? They shouldn’t be if you buy yours at an early age.

Everybody has a long list of options to consider for their LTC which is far better than the CLASS Act. It only takes patience, determination and a clear objective for one to successfully attain his plan.