Repeal of CLASS?
- Thread starter Arthur Rudnick
- Start date
"The 'Gang of Six,' a bipartisan group of senators, today unveiled a deficit-reducing plan that would:
--Starting in 2020, set target to hold the growth of federal health care spending to a formula linked to the Gross Domestic Product, plus one percent, for each beneficiary in Medicare. If spending exceeded that amount, some kind of action would be required by Congress and the president.
--Save $26 billion by curbing waste, fraud and abuse in entitlement programs like Medicare and Medicaid.
--Repeal the CLASS Act, a voluntary long-term care insurance program that was created by last year's health law.
--Require the Senate Finance Committee to quickly approve legislation that would stop statutory cuts in physician payments from taking effect - the so-called '"doc fix.""
This summary is too funny. Do they really think that a $26 billion savings in Medicare and Medicaid is a lot of money--especially when spread out over a 10 year period. That is laughable. (that is a reduction in Medicare and Medicaid spending of less than 1/2 of 1%.)
Thinking that a $26 billion savings in Medicare and Medicaid over the next 10 years is significant, is like a person who spends $10,000 each month and decides to "cut back" on his spending by cancelling his $50 per month gym membership. He's reduced his spending from $10,000 to $9,950. Whoop dee doo! What sacrifice?!?!?
And the "doc fix" increases federal spending on healthcare.
And repealing the CLASS Act also increases the federal deficit because the CBO scored the CLASS Act as "revenue positive" over the next 10 years.
Does anyone in Congress have any courage?
nadm
Last edited:
- 1,953
Repeal CLASS. Cut medicaid and expand asset recovery for those who may qualify for medicaid. I wonder how long Partnership LTC will be around?
Don't repeal the CLASS Act.
The CLASS Act will be the best thing to ever happen to the LTC insurance industry.
nadm
- 17,063
The LTC Partnership program has saved money for the state of Indiana. We've had it for over 10 years. Ours even has UNlIMITED asset protection not dollar for dollar like most states.
- Thread starter
- #6
Arthur Rudnick
Guru
- 1,652
Deficit-Reduction Proposal Aims To Repeal CLASS Act.
Politico (7/21, Norman) reports, "The deficit-reduction proposal released Tuesday by the reconvened Gang of Six would repeal the Community Living Assistance Services and Supports Act, a move that would be a major setback to advocates for improving access to long-term care." The CLASS Act, part of the healthcare law, "was one of the late Sen. Ted Kennedy's most cherished programs," but the "fiscal commission led by Alan Simpson and Erskine Bowles singled it out as an 'unsustainable' entitlement that would most likely saddle taxpayers with a major new liability, a finding that deficit hawks have latched on to in their attacks." In fact, even HHS Secretary Kathleen Sebelius has acknowledged that the CLASS Act is flawed, although she "said that she has the regulatory leeway to adjust eligibility requirements, premiums and benefits levels to make it work."
Fox News (7/21, Clark) on its website reports that the CLASS Act "was designed to relieve pressure on Medicaid and help keep Americans out of nursing homes by enabling them to save for future senior assistance with issues like eating, bathing or dressing as they get older. But the program has yet to begin amid concerns about the actual long-term costs." Opponents of the measure, "citing the Congressional Budget Office, have argued the CLASS Act is little more than a short-term revenue fix that will eventually add to the federal deficit. They also say that a mandate would be required to sustain the program because premiums would ultimately be based on how many Americans actually sign up."
The Boston Globe (7/21, Schoenberg) "Political Intelligence" blog reports, "In the short term, the Congressional Budget Office estimated that the program would reduce federal spending by $83 billion between 2012 and 2021." Yet, this is only due to the fact that "people must buy into the system for five years before getting benefits, so payouts would not actually start until 2017. In subsequent decades, the CBO predicted that the program would pay out more than it takes in." Experts "say because the program is voluntary, it is likely that only the sickest and most at-risk population will participate, driving up costs."
In the Forbes (7/21) "Money & Politics" blog, Howard Gleckman says that at present, over "40 percent of all long-term care is funded by Medicaid." Meanwhile, "only about 7 million Americans own long-term care insurance, which is both costly and often unavailable to those with pre-existing medical conditions." Even though "CLASS is deeply flawed and needs to be reformed, it is an opportunity to transform long-term care from the means-tested Medicaid program to a public insurance-based system, much like Medigap insurance or Medicare Part D drug coverage." Therefore, if it "is repealed, that opportunity will be lost, and millions of Americans will find themselves with only a shrinking Medicaid benefit to support them as they age or become disabled at a younger age."
Politico (7/21, Norman) reports, "The deficit-reduction proposal released Tuesday by the reconvened Gang of Six would repeal the Community Living Assistance Services and Supports Act, a move that would be a major setback to advocates for improving access to long-term care." The CLASS Act, part of the healthcare law, "was one of the late Sen. Ted Kennedy's most cherished programs," but the "fiscal commission led by Alan Simpson and Erskine Bowles singled it out as an 'unsustainable' entitlement that would most likely saddle taxpayers with a major new liability, a finding that deficit hawks have latched on to in their attacks." In fact, even HHS Secretary Kathleen Sebelius has acknowledged that the CLASS Act is flawed, although she "said that she has the regulatory leeway to adjust eligibility requirements, premiums and benefits levels to make it work."
Fox News (7/21, Clark) on its website reports that the CLASS Act "was designed to relieve pressure on Medicaid and help keep Americans out of nursing homes by enabling them to save for future senior assistance with issues like eating, bathing or dressing as they get older. But the program has yet to begin amid concerns about the actual long-term costs." Opponents of the measure, "citing the Congressional Budget Office, have argued the CLASS Act is little more than a short-term revenue fix that will eventually add to the federal deficit. They also say that a mandate would be required to sustain the program because premiums would ultimately be based on how many Americans actually sign up."
The Boston Globe (7/21, Schoenberg) "Political Intelligence" blog reports, "In the short term, the Congressional Budget Office estimated that the program would reduce federal spending by $83 billion between 2012 and 2021." Yet, this is only due to the fact that "people must buy into the system for five years before getting benefits, so payouts would not actually start until 2017. In subsequent decades, the CBO predicted that the program would pay out more than it takes in." Experts "say because the program is voluntary, it is likely that only the sickest and most at-risk population will participate, driving up costs."
In the Forbes (7/21) "Money & Politics" blog, Howard Gleckman says that at present, over "40 percent of all long-term care is funded by Medicaid." Meanwhile, "only about 7 million Americans own long-term care insurance, which is both costly and often unavailable to those with pre-existing medical conditions." Even though "CLASS is deeply flawed and needs to be reformed, it is an opportunity to transform long-term care from the means-tested Medicaid program to a public insurance-based system, much like Medigap insurance or Medicare Part D drug coverage." Therefore, if it "is repealed, that opportunity will be lost, and millions of Americans will find themselves with only a shrinking Medicaid benefit to support them as they age or become disabled at a younger age."
- 10,806
Even the HHS & Selibus have come out and said that the program is unsustainable in the long term "in the bills current form"
Gee, who would have guessed...
- 10,806
Yeah, but its reduces our deficit for the next 10 years... dont you know that nothing matters after that! ..... no matter how many billions we waste! .... mostly because it lets the libs say "it saves us x, over the next 10 years" ....
kind of like me saying "the stock market did great the past two years... that must mean that it will do great for the next two.."
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