October 19, 2011
The U.S. Department of Health and Human Services (“HHS”) announced on October 14, 2011, in a letter to Congress, that the national, voluntary insurance program for purchasing long-term care insurance known as the CLASS Act could not be implemented.
The CLASS Act was included as part of the Healthcare Reform Act and allowed program enrollees to pay for long term care premiums through payroll deduction if offered by their employer. The CLASS Act required the enrollee to pay the entire cost of the coverage and directed HHS to design a plan that would be actuarially sound and financially solvent for at least 75 years. After evaluating benefit options for the past 19 months, HHS could not identify a benefit plan that complied with the CLASS Act requirements and was both affordable to an average enrollee and actuarially sound. Thus, HHS chose not to implement the program.
Contact Information. If you have any questions about this new development, please contact Amy Heppner (404.888.8825), or Leslie Schneider (770.863.3617).
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