Long-Term Care Proposal Draws Opposition

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The insurance industry opposes a long-term care proposal called the CLASS Act, currently included in two major health care reform measures.

Roll Call reports: "The Senate Health, Education, Labor and Pensions Committee package and the House health care reform bill include the Community Living Assistance Services and Supports Act, which would set up a government-run insurance program to provide seniors or disabled people with about $75 per day to help pay for home care or expenses for assisted living or nursing homes. Introduced by HELP Chairman Edward Kennedy (D-Mass.), the CLASS Act would automatically enroll participants and charge them premiums averaging around $65 a month. Participants would be 18 years or older, but anyone could opt out of the plan. Supporters say such a plan is a necessary part of health care reform and would not interfere with private insurers. But companies that currently have a stake in the private long-term care insurance market argue that the government should stay out of that business."

Roll Call reports: "A Senate aide working on the bill draws a distinction between private long-term care insurance and the bill's intention to cover 'long-term services and supports.' This aide, speaking on background, added that the CLASS Act is not designed to put insurers out of business" (Ackley, 7/29).

McKnight's Long Term Care News also reports: "The American Association for Long Term Care Insurance counters that the bill cannot deliver as promised. Its just-released report finds that a $50 daily benefit will require monthly payment closer to $110, not the $65 being promoted. The study also asserts that a new government fund established for such coverage will go broke by 2027. Another obstacle: adverse selection. In other words, people in poorer health will be more likely to sign up for the benefit, the group claims" (7/28).

This information was reprinted from kaiserhealthnews.org with kind permission from the Henry J. Kaiser Family Foundation. You can view the entire Kaiser Daily Health Policy Report, search the archives and sign up for email delivery at kaiserhealthnews.org.

© Henry J. Kaiser Family Foundation. All rights reserved.

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