HC Bill And Class Act.

The CLASS Act's $50 per day "average benefit" will only cover a small portion of the $75,000+ per year most Americans pay right now for in-home care. Most people who want to protect their savings will still need to purchase long term care insurance to supplement the CLASS Act benefit.

The biggest problem we face is that most Americans still think that Medicare or their medical insurance covers the cost of long term care.

The CLASS Act addresses this problem by making a very clear statement: You have to pay for your own long term care. You either have to pay for your own long term care by using your savings, the $50 per day CLASS Act benefit, long term care insurance, or a combination of these.

Most of the ten million Americans who own long term care insurance, own it because they've seen friends or family have to spend down their assets before qualifying for Medicaid. The CLASS Act will help alert the rest of the country to the fact that they need to financially plan for their future long term care needs.

The CLASS Act will not be an option for those who are already disabled (and unable to work) or those who are retired and do not want to work. The law requires that in order to qualify for benefits, one must pay premiums for 5 years AND must be working for at least 3 of those 5 years.

The healthcare reform bill requires that the CLASS Act program:
• be actuarially sound,
• not funded by taxes, but all benefits must be paid from the premiums of the participants in the program, and
• Anyone who is working can enroll in the program, regardless of their health history.

Because of those requirements, the premiums that have been proposed by federal actuaries for the program are 2 to 3 times more expensive than a comparable long term care insurance policy.
 
or...just one more government plan written up by people who do not understand the industry. The question remains.....who is more likely be broke in 20 years, the federal government or a series of A/A+ rated insurance companies offering LTC policies? I'll go with the insurance companies....but I guess the government could take them all over if they want....or maybe better yet, why not force the LTC carriers to take EVERYONE, regardless of health status...just like with health insurance. Now that would sure make sense.:D

Too bad the government just does not spend some money on consumer awareness....as they may get a better result. LTC coverage is already available on a simplified or guaranteed issue to basis to people at work if more employers would offer group LTC.

Just opinions
 
My point is that the CLASS Act does not supplant the private LTCi market. In my opinion, it will expand the private LTCi market.
 
the CLASS Act does not supplant the private LTCi market. In my opinion, it will expand the private LTCi market.

Yup.

Just like Social Insecurity expanded the market for retirement planning so folks wouldn't have to complain about living on a fixed income.
 
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