What is Long Term Care CLASS ACT?

What is Long Term Care CLASS ACT?

What is Long Term Care CLASS ACT?

While the buzz and debates with regards to the issue of health care reform continues, Community Living Assistance Services and Support (CLASS) Act was signed which in effect makes paying for long term care a little easier to manage. Under this government program, participants will pay a monthly premium and, if found eligible after five years of payment, will be given benefits for their long-term care needs.

Most of the details of long term care class act are still unclear but draws interest to many since it offers employees the option to voluntary long term care insurance. Under CLASS Act, employees who opted to participate will be paying premiums collected through payroll deductions. According to Keven Bress' assessment, the employee gets insured under a government-issued long-term care policy with fairly limited benefits designed to help with the cost of long-term care, but certainly not to cover the costs.

The key provisions of this Act mainly cover that enrolees will pay a monthly premium through payroll deduction, will be covered on a guaranteed-issue basis, will be eligible for benefits for their long-term care needs after paying premiums five years (must have worked at least three of those five years), and, will receive a lifetime cash benefit after meeting benefit eligibility criteria, based on the degree of impairment.

Supporters of CLASS act see it as an economic lifeline, which allows people to remain functional and independent longer and reduce the financial burden of formal and informal caregivers. Also, this program indicates that registrants would make long-term care more affordable and reduces the number of people who spend their assets to achieve eligibility for Medicaid.

Despite of its good intentions, long term care CLASS Act still faces opponents questioning its structures strength and reliability. Those who are opposed expressed concern on the extent that taxes are too high to attract subscribers, or if grown over time to support the program, the program risks losing the healthy individuals, while keeping with those with significant needs. This, as a result, affects the sustainability of the program.

The cost of LTCi CLASS Act has remained undetermined. But, as part of the program construction, it is expected to be defined by the Secretary by October, 2012. And, it is rendered advantageous to potential participants for it provides Guarantee Issue which states no one is denied of coverage based on current health condition. Students under the age of 22 and people with income below the poverty line are rated with low premiums and, most especially, the requirements set for the insurance premiums are put in a fair competition based on private insurance.

These new provision guidelines also provide Medicaid coverage expansion for the elderly, many who could not qualify in the past, making it easier to pay for their long-term care. CLASS Act is scheduled to become effective in 2011. Still, there are many details yet undefined but the government aims to the program's further development in the coming years.

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