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Has CLASS Been Let Out?

Current Administration is “reassigning the workers in the office that was developing the Community Living Assistance Services and Supports (CLASS Act long term care benefits plan – a program that is part of the Patient Protection and Affordable Care Act (PPACA).”


(CLICK HERE to read about the reassignments in detail in the September 22, 2011 National Underwriter article.)


A provision supported by the late Sen. Edward Kennedy, the CLASS Act provision in PPACA, is responsible for creating a National, work-site, voluntary insurance program that workers would use to buy LTC protection.  HHS Secretary Kathleen Sebelius has been called to define the CLASS benefit by October 2012 per the PPACA.

“As we have said in the past, it is an open question whether the program will be implemented,” Sebelius said. “A CLASS program will only be implemented if it is fiscally solvent, self-sustaining, and consistent with the statute.”

A new entitlement couldn’t possibly help reduce the budget deficit the Administration is so desperately seeking to address, according to The New American. “First the administration asked the Senate Appropriations Committee to zero out funding for CLASS for fiscal year 2012 despite having previously requested $120 million for the program. Sen. John Thune (R-S.D.) applauded the move, calling it a “good first step,” but said Congress should finish the job by repealing the CLASS Act.”

(Read about the history of the provision HERE in an Opinion Feature in The Wall Street Journal.)

Supposedly, the office isn’t closing, but regardless, many don’t want to let the current Administration dictate their LTC protection and greater peace of mind.  Whatever the outcome, many Americans should consider purchasing Long Term Care insurance to protect themselves and their families.

Long Term Care coverage is an insurance product which provides for the cost of long-term care stretches beyond a predefined period.  Long Term Care provides for individuals who are not sick in a traditional sense but who require assistance with “activities of daily living.” 

If you’d like more information on whether you are within the range of net worth and financial liquidity to need to purchase LTC. There is a diverse array of Long Term Care programs available through insurance solutions and planning strategies. Simply contact our office today!


This material has been prepared for informational purposes only.  It is not intended to provide accounting or tax advice. You are encouraged to consult a tax professional specializing in these areas regarding the applicability of this information to your situation.  If you are not currently affiliated with a tax professional, simply contact us today as we would be happy to recommend an individual for these services.


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