The Continuing Saga Of CLASS

[RedKite]

In 2010, sweeping health-care reform legislation was enacted under the title "Patient Protection and Affordable Care Act." Included in this legislation was a provision titled Community Living Assistance Services and Supports (CLASS) Act. This provision sets forth a new program designed to provide consumers with a means to receive federal funds for long-term care. The CLASS program will be voluntary, available to working individuals age 18 and older through their employers, and will be funded with payroll deduction contributions from those who want to participate in the program. After having participated for at least five years, enrollees will be entitled to daily cash payments in the event they qualify for long-term care based on the inability to perform certain activities of daily living. The amount of the daily benefit is to be no less than $50. The program is scheduled to take effect in 2013.


Doesn't look like I got any facts wrong....

 

[Mr_Ed]

The government will try to get this off the ground because it will be another general fund they can "borrow" from like the bankrupt Medi-fund. WRONG.



When it is passed through the normal governmental process of convoluded figures and legal terms to sound like a great idea, have paid off ivy-league professors to write their error loaded reviews,

and market it in the billions of dollars WRONG with your tax dollars WRONG, people will finally accept this strategically designed fradulent program designed specifically at working toward voulentary taxation. (WTF!)

Only every single "fact" you stated is wrong.

Try reading the legislation or try reading more than a summary paragraph.

 

[Norwayguy]

Can you at least try to rebut my statement?

My Dear Mr. NADM, Sir...................

You & I have been at odds on CLASS from the day this stupid piece of legislation was introduced. It's not an issue of sustainabilty (no one with any common sense thinks it's sustainable) nor is it an issue as to whether at the end of the day will the US taxpayer be subsidising it (they will), it all has to do with this:

"This business is tough enough, I don't need the government to compete with me!"​

You don't see CLASS as your competition, you see it as great advertising & marketing tool for LTCi. And, I understand your thinking, but what I've been trying to explain to you for 2 years is that #1, you're misguided in your thinking, and #2, the public out there, who we have to deal with on a daily basis is stupid! (No, I didn't say that) (Well, OK I said it!)

Case in point:
We have all come up with prospects who tell us that they have a great LTC policy from their employer. It's terrific, it's cheap and it's wonderful. You say "really, what are the benefits?" And they say.................... "I don't know but my company did all the research & endorsed it so it must be good".

When you finally get to see the contract, you find out that this 45 year old employee has a $150/day benefit for 3 years without an inflation rider.

BUT.................. He has a LTC policy, so there's no need to solicit him. If you're marketing LTCi, chances are this person will never respond to your solicitation because they already have a policy, why would they want to speak with you when they're already covered?

Someone buys CLASS... hey, they're covered! Why would they need to speak with a LTCi agent when they already have a LTC policy? It doesn't matter if the policy is a piece of crap, THEY'RE COVERED!

Look at how many people you speak with that think their health insurance will cover LTC services, forever if needed? How many people on Medicare think Medicare will cover LTC services, forever if needed? Healthy & wealthy people think Medicaid will cover them. The stupidity out there sometimes amazes me.

The point is, if people have a CLASS policy, they will think they're covered and the bottom line is:
You will never get to talk with them.

So, your theory of sitting down with a CLASS policyholder and telling them that you have something better, will never happen. They don't need you, they already have a policy!

If 5 million people join CLASS, that's 5 million less prospects that you & I will get to talk with and THAT'S why you better hope & pray that you don't get what you wish for.

CLASS is nothing more than a political piece of garbage and if we're lucky, it will go away.

How's that for a rebuttal?

You have a great point about the general public.

 

[RedKite]

Only every single "fact" you stated is wrong.

Try reading the legislation or try reading more than a summary paragraph.

Not going to defend it because i dont have to you clearly enjoy being right or argumentative.

 

[Arthur Rudnick]

Not going to defend it because i dont have to, you clearly enjoy being right or argumentative.

NADM????

 

[Mr_Ed]

Not going to defend it because i dont have to you clearly enjoy being right or argumentative.

I'm not being argumentative. I just don't think that your ignorant statements should be left unchallenged.

If you'd read the legislation, or at least read the very brief summary that I linked to, you'd realize that your "facts" are not factual at all.

Here's that link again. It's only 387 words:

What is the CLASS Act (Community Living Assistance Services and Support Act) « LTCShop.com


nadm

 

[billberry12]

I think the only takers will be the uninsurable. Point # 13-$5 a month if below the poverty level. I'll bet you $10 there will be very few takers at $5. Why would they pay $5 when they can get Medicaid for $0?.

NADM, IMHO, the only people that might care anything about this class act will be the uninsurable, and most of them don't care. Only the ones with assets (something to lose) and uninsurable will be possible takers, and probably not many of them.

I am not sure I believe that the class act will make any difference at all in the LTCI private sector's business.

 

[Trubi]

I'm coming late to the discussion here, but what about getting to people BEFORE they are enrolled? (I almost said sign up but its an opt out program. I've already had several health / employee benefit agents ask me questions that they are getting. I'm encouraging them that if / when the time comes, do a session with the employees, explain the CLASS Act, what the benefits are, what the premiums are & what we can do on the private side of insurance, including better inflation, easier claim trigger (2 or 3 ADL on CLASS) & less tricky rate stability language. The rates are guaranteed until the Secratary says they aren't stable, then he / she can raise them. At least we have the DOI that the carriers have to prove where they went wrong & they approve the notice.
I'm not a fan of the CLASS Act, I personally would rather see an above the line deduction for premium, but I firmly believe that any publicity about LTC planning is good if it is handled correctly.

 

[Arthur Rudnick]

"I'm coming late to the discussion here, but what about getting to people BEFORE they are enrolled?"

Excuse me for being a little confused, but I've been doing
just that since 1995 when I started in the business.

I work almost exclusively in the individual market. To date,
I've only had one prospect ask me about CLASS. Stop 100 people on the steet, ask them what they think of the CLASS Act, and 99 won't have a clue what you're talking about.

Now, if you're a benefit broker for employers, then possibly
the company owner or HR head may have a vague idea. But
the reality is, I haven't spoken to one employer (large or small) that wants anything at all to do with Obama Care and if CLASS is part of Health Care Reform, they're against it. They might
not know what it is, but they're against it.

Consumers don't need the CLASS Act to inform them that
LTCi is something they should look into.

If a person has not been asleep over the past few years, they certainly have either read or heard information everyday
about LTCi and what it does. Newspapers, financial journals, AARP, magazines, Suze Ormond, radio, TV, grandpa, grandma and neighbors.

One would have to have their head buried up their.........
(in the sand) not to hear reports about Medicare & Medicaid
and how these programs are broke and will not pay for LTC services.

Let's look at some recent history:
The Partnership Plans (Post DRA, 2005) were supposed to increase LTCi sales by 100000000000000000000000%. Why? Because EVERYONE would hear about it and line up with their checkbooks out, waiting to buy a policy. Didn't happen, did it?

A few years ago, each state spent millions of dollars on Awareness Programs for educational purposes. Every state resident, over the age of 55 received a package with a DVD explaining LTCi. People were informed that the costs of LTC services are not something the state & federal government
pays for and everyone should look into private LTCi and take
personal responsibility.

The Awareness Program was supposed to increase LTCi sales
by 2000000000000000000000%. Why? Because EVERYONE would hear about it and line up with their checkbooks out, waiting to buy a LTC policy. Didn't happen, did it?

In 2002, Hancock & MetLife got involved with the Federal Program. The Federal Program was supposed to increase LTCi sales by 30000000000000000%.

Why? Because EVERYONE would hear about it and line up
with their checkbooks out, waiting to buy a LTC policy. Didn't happen, did it? (It only happened for the 220,000 federal employees who signed up)

I don't know about you, but close to 80% of my sales in the past 16 years have come from people who have had direct experience with LTC, usually with parents who are in nursing homes.

They didn't buy a policy because the governement brought
it to their attention, they bought it for one reason..................

THEY FELT THE PAIN! They see their parents spending down their life savings and they don't want the same thing for their kids.

That's it folks.... PAIN and nothing else.

The point is, if you truly believe that CLASS will do for you
what the Partnership Plans did NOT do and the State
Awareness Programs did NOT do and what the Federal
Program did NOT do, then you must surely be insane.

Because according to Einstein, the definition of insanity is
doing the same thing over & over again, expecting different results.......

Time will tell who's on the right side of this debate. Personally,
I think chances are CLASS Act will never become law. And, for that, we should be thankful......

(Sorry, got a little carried away)

 

[Trubi]

I agree with most of what you said, the individual on the street, knows nothing about the CLASS Act. But aren't we here to educate the public? What about if it does happen, have a educational workshop for some existing clients about before you are enrolled, talk to me? I have also had benefit people reach out to their brokers asking, what am I supposed to be doing about this. Mostly small (10-50) business. Those brokers are either know LTC or are partnering with a LTC expert and talking about options. I doubt it will become law. I just likeI guess I am just a glass half full kind of girl.